United Kingdom Home Insurance Consumer Research Report 2022: Price v Cover, Renewal v Switching, Big Brands v Small Brands

DUBLIN, Feb. 9, 2023 /PRNewswire/ — The “UK Home Insurance Consumer Research Report 2022” report has been added to  ResearchAndMarkets.com’s offering.

 

This report considers the current situation for those with home insurance policies in the UK and explores type of insurance, criteria for choosing, i.e. price v cover, renewal v switching, big brands v small brands.

Use and perception of price comparison sites, claims made and claims success, policy cancellations. It is based on a national consumer survey of 1727 policy holders undertaken in November 2022.

As well as the report the price includes a data spreadsheet with detailed survey results in total and by age, sex, region, income.

Here are some selected findings:

• According to the survey, the first thing that a consumer looks at when choosing home insurance is price rather than what the insurance actually covers. Over 70% consider the price first.
• Over half (53% overall) also prefer to take a home insurance policy from a well-known insurance brand even if there is a cheaper option from a less well-known brand.
• A majority (57%) stayed with their current home insurance provider when their latest renewal came around. Just under a third (32%) switched provider when their last renewal came around.
• Over the next 12 months, 20% say that they are definitely going to switch while another 43% say that they might switch. The FCA’s recent reforms, where insurers have to offer the same insurance price to existing customers as well as new customers, could temper some switching although many consumers may not know about this change.
• To try and save some money in these inflationary times, there are 18% of those with just contents insurance that are considering saving money by cancelling their policies completely when the renewal date is imminent.
• Only 9% of policyholders have made a claim in the last year and another 10.5% have made a claim in the last two to five years.
• Buying home insurance direct from the insurance company is still the route used by the largest group – 45% of respondents. Not that far behind are price comparison sites with 34% purchasing home insurance policies from these sites.

Key Topics Covered:

1. EXECUTIVE SUMMARY

• Summary
• Consumers look at price rather than insurance cover plus turn to big brands
• Brand loyalty matters for over half but around a third have switched
• More say they could switch in the next 12 months
• Cost of living crisis could lead to policy cancellations for some
• Overwhelming majority of policyholders have not claimed in last 5 years
• Top purchase route is direct from insurer but comparison sites also important
• Price comparison sites are major home insurance information sources for most
• Mixed views on whether price comparison sites offer the best deals

2. INTRODUCTION

3. HOME INSURANCE – BACKGROUND

• Almost three-quarters have insurance cover for both buildings and contents
• Price of policy trumps cover offered for clear majority
• Well-known insurance brands are the choice for a majority

4. INSURANCE CLAIMS

• Percentage of those making a claim is relatively low but most are successful

5. RENEWALS, SWITCHING AND NEW POLICIES

• Majority have stayed with their existing insurance provider
• A majority could switch insurers in the next year
• Almost one in five considering cancelling their contents insurance
• Purchasing direct is still the main option but comparison sites also important

6. PRICE COMPARISON SITES

• Used by over 8 out of 10 home insurance purchasers.

7. HOME INSURANCE MARKET TRENDS

• Household numbers increasing year-on-year
• Home insurance market is price competitive and premiums dipped in 2022
• Trends for 2023 and beyond

LIST OF FIGURES

• Figure 1 Survey sample – demographic breakdown
• Figure 2 Price versus coverage of policy (%)
• Figure 3 Cover from well-known brands versus other brands (%)
• Figure 4 Home insurance claims made and claims outcome (%)
• Figure 5 Insurance renewals with existing provider or switching (%)
• Figure 6 Likelihood of switching insurers in the next year (%)
• Figure 7 Source of purchase of home insurance policy (%)
• Figure 8 Opinions on price comparison sites for home insurance (%)
• Figure 9 Number of households in the UK (millions), 2015-2021

For more information about this report visit https://www.researchandmarkets.com/r/nsem5f-home-insurance?w=5

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SOURCE Research and Markets