UK Personal Lines Distribution

  • ID: 3637221
  • Report
  • Region: United Kingdom, Great Britain
  • 60 Pages
  • GlobalData
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  • AA
  • Argos
  • Barclays
  • esure
  • Insure and Go
  • Marks and Spencer
  • MORE
The personal lines insurance market has reached a level where products are priced at such a low rate that shopping around for better deals - which is common across the four main product categories (motor, home, travel, and pet) - is becoming a thankless task with limited benefits. Intense competition has driven rates down to a level where switching provider is beginning to offer little in terms of cost savings. As a result, automatic renewals have increased in most distribution channels and product categories. This trend is set to continue unless a hardening of rates is brought about or capacity is reduced.

Key Findings

- Almost half of policies across all of the personal lines markets are distributed through the direct channel.

- Price comparison site usage has fallen but they remain an important port of call for customers - whether for research, quote comparison, or regular sales purposes.

- The online channel remains important to consumers purchasing personal lines as the use of digital devices has become ubiquitous and internet usage gains in popularity.


"UK Personal Lines Distribution" explores consumer purchasing behavior and how it is developing across the four main personal insurance product categories. The report discovers what is most influential to customers when purchasing a policy and also reveals the most popular providers in each of the respective markets. New trends and innovations are highlighted along with the key factors influencing the distribution of personal insurance products.

Reasons To Buy

- To understand consumer purchasing decisions and how these will influence the market over the next few years.

- To improve consumer engagement by recognizing what is most important to customers and how insurers can adapt their products and services to meet their needs.

- To discover the top providers in the personal lines markets and how the distribution of personal insurance products is developing now, and also how it will evolve in the future.

- Adapt and improve your company's distribution strategy to ensure it is aligned with customer purchasing attitudes, behaviors, and expectations.
Note: Product cover images may vary from those shown
2 of 5


  • AA
  • Argos
  • Barclays
  • esure
  • Insure and Go
  • Marks and Spencer
  • MORE
1. Executive Summary
- Low premiums are encouraging customers to say put
- Key findings
- Critical success factors

2. Introduction
- Changing customer attitudes are causing insurers to rethink their strategies

3. Purchasing Channels
- The direct channel continues to grow its share of the personal lines market
- Around 50% of policies across personal lines are purchased direct
- A strong phone service is required to complement the online proposition
- The direct channel is expected to experience little change over the coming years
- Aviva and Direct Line lead the car and home markets
- Automatic renewals increase among direct customers amid a decline in shopping around
- Brokers' share of personal lines shows no real sign of progress
- Intermediaries have no more than a 10% share across the personal lines
- Telephone is the standout method of engagement for consumers purchasing from brokers
- Aviva heads up three of the personal lines markets in the broker channel
- Brokers saw a sharp fall in the proportion of customers switching provider
- Banks are fully equipped but struggling to attract more personal lines business
- Banks are failing to make use of their access to a large customer base
- Consumers in the banking channel prefer to use the telephone
- Retail banks are now major players in the home and travel insurance markets
- Banking channel switching rates offer a mixed picture across the product categories
- Retail outlets are performing well in the markets with an established reputation
- The retail sector maintains its strong affiliation with pet insurance
- The supermarkets dominate the retail channel, with Tesco still the frontrunner
- Tesco heads up the individual personal lines product categories
- Customer loyalty among car insurance customers is relatively low in the retail channel
- Price comparison site usage rates are falling
- Fewer policies are purchased using aggregators but they continue to fulfil their purpose
- is the top site for aggregator-bought product introductions
- leads the way for policies purchased in the aggregator space
- Switching levels remain high in the aggregator space
- Personal lines distribution
- The direct channel and aggregators generate the most business for personal lines insurers
- The direct channel and the banking space will experience growth over the coming years

4. Trends and Developments
- Price has become less of an influencer in the personal insurance space
- More consumers are happy to remain with insurers they previously held a policy with
- The price is not always right as aggregator headline quotes continue to capture customers
- The digital channel offers alternative means for brand and product engagement
- Allianz has demonstrated how technology can be used for purposes other than sales
- Consumers are still struggling to see the use case for mobile apps
- Insurers are battling to make adequate use of social media
- Consumers are not using their smartphones for insurance purposes
- Insurers providing expedient solutions will decide the channel infrastructure
- Clarity and simplicity will be key requirements for insurers in the coming years
- Worry+Peace provides a demonstrative view for customers and their policies
- P2P concepts remind insurers of the need to maintain relevance
- New PassportCard offers an additional route to market for travel insurers

5. Appendix
- Abbreviations and acronyms
- Definitions
- Affinity/partnerships
- Banks/building societies
- Broker
- Direct
- Methodology
- Primary sources
- Secondary sources
- Further reading
- Disclaimer
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- AA
- Admiral
- Ageas
- Allianz
- Argos
- Asda
- Aviva
- Barclays
- Churchill
- Direct Line
- esure
- Halifax
- Hastings
- Insure and Go
- LV=
- Legal and General
- Lloyds Bank
- Marks and Spencer
- More Th>n
- Nationwide
- Petplan
- Post Office
- Saga
- Swinton Insurance
- Tesco Bank
- The Co-operative Insurance
- Thomas Cook
Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown