UK Home Insurance Consumer Research Report July 2019

News provided by

Jul 15, 2019, 11:00 ET

DUBLIN, July 15, 2019 /PRNewswire/ -- The "UK Home Insurance Consumer Research Report July 2019 " report has been added to ResearchAndMarkets.com's offering.

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.

Key Topics Covered:

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

Companies Mentioned

Direct Line
Financial Conduct Authority (FCA)
MIS Group UK

For more information about this report visit https://www.researchandmarkets.com/r/evionp

Research and Markets also offers Custom Research services providing focused, comprehensive and tailored research.

Media Contact:

Research and Markets
Laura Wood, Senior Manager
[email protected]

For E.S.T Office Hours Call +1-917-300-0470
For U.S./CAN Toll Free Call +1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

SOURCE Research and Markets