Abstract
Overview
Introduction
There are two main strategies for offering home emergency insurance. It is
either provided free of charge with household insurance as a means to
differentiate the household offering, or it is sold as an optional extra on
household insurance, and is used as a revenue generator. This report analyzes
these two strategies, and their influence on the future growth of the market.
Scope
- Datamonitor estimates on the size of the UK home emergency market based on
in-depth interviews with senior industry executives
- An evaluation of the main competitive strategies and their likely impact
on future growth in the market
- Information on competitors and premium rates obtained from a mystery
shopping exercise carried out by Datamonitor in March 2006
Report Highlights
Interviews with industry executives suggest that the highest penetration rate
that insurance providers have currently achieved selling home emergency
insurance as an optional extra on household insurance is around 30 per cent.
Many books are currently smaller than that and there is therefore room for
growth in the market.
Four of the top 10 home insurers provide home emergency insurance free of
charge on all or some of their home insurance policies, according to a mystery
shopping exercise conducted by Datamonitor in March 2006. These are Royal &
SunAlliance, Legal & General, Zurich FS and AXA.
Because most policies are sold in connection with the sale of a home insurance
policy, direct price competition is not a problem in this line of business.
This is reflected in the variations in price, which range from £2 to £7 a
month.
Reasons to Purchase
- Formulate your strategy for selling home emergency insurance and how this
product relates to the highly competitive household insurance market
- Benchmark your home emergency offerings and premiums against those of your
competitors
- Understand what makes home emergency insurance attractive to insurers
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