UK Personal Insurance Consumers 2007

Table of Contents

• DATAMONITOR VIEW
  • CATALYST
  • SUMMARY
• ANALYSIS
  • The internet continued to gain market share in 2007, although telephone remained the dominant platform
    • The telephone remained the largest platform for arranging a motor policy in 2007, but the internet platform is growing fast
      • The telephone and face-to-face platforms have been declining steadily among motor insurance consumers
      • More consumers are turning to the internet to arrange their motor policies
    • Face-to-face arrangements of household insurance policies continue to decline in favor of phone and internet
      • Face-to-face distribution of household insurance has been declining for several years
      • The number of consumers arranging household insurance online or over the telephone grew in 2007
  • Consumers' insurance purchasing behavior varies by age and income
    • The internet is most popular among younger consumers as a platform for purchasing motor and household insurance
    • Arranging home or motor insurance over the telephone remained the most popular option for consumers, regardless of age
    • The face-to-face platform was most popular among older consumers in 2007
    • The face-to-face platform was most popular among low-income consumers
    • Affluent motor insurance consumers were the most likely to have purchased their insurance online in 2007
    • Arranging insurance over the telephone was popular at all income levels in 2007
  • Consumers' propensity for switching provider varies by platform used
    • More than a third of consumers who purchased their motor insurance online switched provider at renewal
      • Consumers purchasing their motor policies face-to-face, by phone or via post are unlikely to change provider
    • Consumers are more likely to switch if they purchase their household insurance online
    • Switching provider is more prevalent among younger consumers
      • Motor insurance consumers become less likely to change their provider as they age
      • The loyalty of household insurance consumers also increases with age
  • Online consumers are more price-conscious than consumers buying via other platforms
    • Consumers purchasing a motor policy via the internet are more likely to be motivated by cheaper quotes than others
    • Online household insurance consumers show greater price sensitivity than consumers using other platforms
• APPENDIX
  • Definitions
    • Channel
    • Direct insurer/writer/channel
    • Platform
  • Methodology
    • Ipsos MORI methodology and contacts
      • Sample design
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
  • List of Tables
    • Table 1: Distribution of private motor insurance, by platform, 2003-07
    • Table 2: Distribution of household insurance, by platform, 2003-07
    • Table 3: Consumers buying motor and household insurance via the internet, by age group, 2005-07
    • Table 4: Consumers buying motor and household insurance by telephone, by age group, 2005-07
    • Table 5: Consumers buying motor and household insurance face-to-face, by age group, 2005-07
    • Table 6: Consumers buying motor and household insurance face-to-face, by income, 2005-07
    • Table 7: Consumers buying motor and household insurance via the internet, by income, 2005-07
    • Table 8: Consumers buying motor and household insurance by telephone, by income, 2005-07
    • Table 9: Propensity to switch motor provider and likelihood of getting other quotes, by distribution platform, 2007
    • Table 10: Propensity to switch household provider and likelihood of getting other quotes, by distribution platform, 2007
    • Table 11: Private motor retention rates by age, 2003-07
    • Table 12: Household insurance retention rates by age, 2007
    • Table 13: Motivations for taking out a motor insurance policy, by distribution platform, 2007
    • Table 14: Motivations for taking out a new household insurance policy, by distribution platform, 2007
  • List of Figures
    • Figure 1: The percentage of consumers arranging their motor insurance online has been increasing steadily since 2003
    • Figure 2: Phone remains the largest distribution platform for household insurance in 2007
    • Figure 3: Younger consumers were most likely to purchase home or motor insurance online in 2007
    • Figure 4: Consumers of every age group remain most comfortable arranging their insurance by telephone
    • Figure 5: The proportion of motor insurance bought face-to-face increased with age
    • Figure 6: The face-to-face platform declined in popularity among more affluent consumers in 2007
    • Figure 7: Consumers in the highest income brackets were most likely to buy motor and household insurance via the internet in 2007
    • Figure 8: Use of the telephone to arrange household insurance rose slightly relative to household income in 2007
    • Figure 9: Consumers purchasing their motor insurance online were more likely to change their insurance provider in 2007
    • Figure 10: Consumers are most likely to switch from an insurance provider when they purchase their household insurance online in 2007
    • Figure 11: Older consumers were more likely to stay with their current providers in 2007
    • Figure 12: Consumer loyalty increased with age among household insurance consumers in 2007
    • Figure 13: Obtaining a cheaper quote was the most common reason for choosing a provider across all distribution platforms in 2007
    • Figure 14: There is a greater price awareness among consumers who purchase their household insurance online in 2007