+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)

PRINTER FRIENDLY

UK Home Insurance Consumer Research Report July 2019

  • ID: 4801605
  • Report
  • Region: United Kingdom, Great Britain
  • 94 Pages
  • IRN Research
1 of 3
The Home Insurance Consumer Research Report July 2019 shows that 80% of adults are householders, of which 53% own their homes and 28% rent their homes.

FEATURED COMPANIES

  • Direct Line
  • MIS Group UK
  • MORE

Not all householders are insured Householders, defined as individuals who either own their own home (with a mortgage or outright) or who rent their home, represent eight-in-ten adults in the UK. The penetration of homeownership rises very strongly with rising age, income, and social grade, while the penetration of renting declines strongly with rising age, income, and social grade.

Seven-in-ten adults own any type of home insurance, with the result that around three-quarters of householders have insurance cover and around one-quarter go without cover. Like homeownership, the tendency to own insurance tends to rise with age and affluence.

Uninsured Householders tend to be relatively young consumers and include a relatively high percentage of adults from C2DE social grades, especially unemployed/not working/student adults. Uninsured Householders include a relatively high percentage of adults living in flats, so are likely to include a high percentage of recent first-time home buyers.

Key facts

  • 80% of adults are householders, of which 53% own their homes and 28% rent their homes.
  • 71% of adults own any type of home insurance. While most householders (77%) have home insurance, 23% go uninsured.
  • Adults who own their own homes – either outright or with a mortgage - represent 67%of all adults with home insurance.
Note: Product cover images may vary from those shown
2 of 3

FEATURED COMPANIES

  • Direct Line
  • MIS Group UK
  • MORE

1.EXECUTIVE SUMMARY

  • Not all householders are insured
  • And not all the insured are householders
  • Risk aversion and value perceptions strongly motivate home insurance ownership
  • Being a confident savvy consumer helps encourage insurance cover
  • The Age Dichotomy
  • Many policyholders may shop online but they are flexible in their approach
  • The circular flow of online attitudes
  • Policyholders like combined, standalone policies and few opt for policy add-ons
  • Significant potential for Smart Home technologies
  • The Customer Journey is often a repeat trip
  • Price comparison websites (PCWs) the prime research resource
  • A fine balance between price and cover
  • Policyholders have very few problems being a customer
  • Beware the journey’s end: policyholders are not very loyal
  • Six-in-ten policyholders could be good cross-selling prospects

2.INTRODUCTION

3.PROFILE OF THE INSURED

  • Key findings
  • 80% of adults are householders
  • Age, social grade and income the major influences on householders
  • Seven-in-ten adults own home insurance
  • Insurance ownership tends to rise with age and affluence

4.HOW CONSUMERS APPROACH INSURANCE

  • Key findings
  • Risk aversion and value perceptions
  • Attitudes strongly influence insurance ownership
  • Confidence and self-reliance
  • Insured householders are the most likely to know what they are doing
  • The age division
  • Predisposition toward an online customer journey
  • Insured householders are the most focused on an online customer journey
  • Circular movement in agility

5.THE TYPE OF INSURANCE OWNED

  • Key findings
  • Consumers prefer buying combined buildings and contents cover
  • Homeowners represent almost seven-in-ten insured adults
  • Separate policy ownership peaks in London
  • Adults doubting the value of insurance often buy contents or buildings only policies
  • Most policyholders buy standalone policies
  • Most policyholders pay for their insurance annually
  • Few policyholders take out add-ons with their insurance
  • Potential for home telematics or Smart Home technologies
  • Young affluent policyholders the most open to a Smart Home offer
  • But there is potential for insurance-linked sales among more mature and less affluent policyholders

6.THE CUSTOMER JOURNEY BEGINS

  • Key findings
  • Most policyholders are repeat purchasers
  • Over four-in-ten policyholders renew
  • Switching is a sign of confidence and discontentment
  • The importance of the renewal prompt
  • Renewing does not mean accepting, especially if you have a combined policy
  • Most policyholder who renew are pro-active

7.BUYING A POLICY: FINDING THE RIGHT DEAL

  • Key findings
  • Price comparison websites the prime research resource
  • Ease of use and information the key positives of PCWs
  • Online attitudes drive online self-discovery
  • The PCW dominance is here to stay
  • Policyholders can find brokers but lack the trust to use them
  • Policies are purchased primarily directly from the provider
  • Purchasing by policy

8.PRICE, COVER OR BRAND

  • Key findings
  • Five buying strategies
  • Policyholders shop online to get the right cover and a low price
  • Seven-in-ten policyholders negotiate
  • But can consumers negotiate from a position of strength?
  • It’s the volume of paperwork that limits knowledge

9.BEING A POLICYHOLDER

  • Key findings
  • For most policyholders, owning a policy is a problem-free experience
  • Be careful, it’s your most affluent customers you are annoying the most
  • Online policy management now becoming the norm
  • 9% of policyholders have claimed within the last year
  • Problems and claims often go hand-in-hand
  • The claims process goes smoothly for most claimants, resulting in high levels of satisfaction

10.ENDING THE JOURNEY: CUSTOMER LOYALTY AND SWITCHING

  • Key findings
  • Policyholders do not stay very long
  • And loyalty is not about to increase soon
  • Switching is strongly price led
  • Little evidence for price walking

11.CROSS SELLING OPPORTUNITIES

  • Key findings
  • Home insurance policyholders are a prime market for insurance products
  • Large gaps in insurance coverage for electronic products

LIST OF FIGURES

Figure 1 The penetration of homeownership and renting by key demographics
Figure 2 The breakdown of consumers by the ownership of home insurance and householder status
Figure 3 The profile of home insurance owners
Figure 4 Profile of home insurance owners by region
Figure 5 Home insurance ownership by attitudes towards insurance
Figure 6 Insurance ownership by attitudes towards buying insurance
Figure 7 The importance of age for risk aversion and confidence attitudes
Figure 8 Insurance ownership by attitudes towards online buying and researching
Figure 9 The relationship between online preferences and buying confidence/advice needs
Figure 10 The relationship between online preferences and confidence by age
Figure 11 The types of home insurance policies owned
Figure 12 The Ownership of home insurance by household tenure
Figure 13 The profile of the owners of home insurance by key demographics
Figure 14 The profile of the owners of home insurance by region
Figure 15 Ownership of home insurance by attitudes towards insurance
Figure 16 How home insurance was acquired
Figure 17 The percentage of policyholders buying home insurance bundled with other financial products*
Figure 18 How home insurance policies are paid for
Figure 19 The ownership of policy add-ons
Figure 20 The ownership and interest in Smart Home technologies
Figure 21 The current penetration of Smart Home technology
Figure 22 The % of policyholders interested in getting Smart Home technology with home insurance*
Figure 23 How the current home insurance policy was acquired
Figure 24 The % of policyholders who acquire their policy by switching
Figure 25 The % of policyholders who acquire their policy by renewing
Figure 26 The % of policyholders who were first-time buyers when they acquired their policy
Figure 27 % of policyholders who switched or renewed who remember receiving a renewal notice
Figure 28 Actions taken before renewing
Figure 29 Policyholder action before renewing with an insurance provider
Figure 30 The resources consulted before arranging insurance over the past two years
Figure 31 Policyholder attitudes towards PCWs
Figure 32 The resources consulted before arranging insurance over the past two years by online attitudes
Figure 33 The % of policyholders stating PCWs are their main source of information on insurance products.
Figure 34 Where policyholders would look to compare deals
Figure 35 Resources consulted before arranging insurance by trust in brokers/advisors
Figure 36 Where the last home insurance policy was acquired from
Figure 37 Where the last home insurance policy was acquired from by type of policy
Figure 38 The relationship between online attitudes and the final purchasing channels
Figure 39 The strategies adopted by policyholders when purchasing insurance
Figure 40 Correspondence analysis of the influence of price, cover, and brand
Figure 41 The price focus of policyholder by key demographics and attitudes
Figure 42 The cover focus of policyholders by key demographics and attitudes
Figure 43 Negotiation with the insurer when taking out a new policy or renewing
Figure 44 How policyholders read their policy documents
Figure 45 Why policy documentation is not read in detail
Figure 46 The percentage of policyholder encountering problems
Figure 47 The percentage of policyholders encountering problems by key demographics and attitudes
Figure 48 Can home insurance policyholders access policy details via the portal
Figure 49 How online policyholder portals are used
Figure 50 The incidence of claiming on home insurance
Figure 51 The incidence of making a claim in the past year by key demographics and attitudes
Figure 52 Claimant opinion of their last home insurance claim
Figure 53 Claimant opinion of their last home insurance claim by problems encountered
Figure 54 The time spent with the current provider
Figure 55 The time spent with the current provider by method of last policy acquisition
Figure 56 The % of policyholders thinking of switching provider over the next year
Figure 57 The factors that caused policyholders to switch provider
Figure 58 Perceived rise in premiums by time with current provider
Figure 59 The items and assets owned by home insurance policyholders
Figure 60 The demographic, ownership and activity characteristics of insurer prospects
Figure 61 The product/asset and insurance ownership characteristics of insurer prospects

Note: Product cover images may vary from those shown
3 of 3

Loading
LOADING...

4 of 3
  • Direct Line
  • Financial Conduct Authority (FCA)
  • MIS Group UK
Note: Product cover images may vary from those shown
Adroll
adroll