英国における個人向け保険の販売動向：2007年

Abstract

Overview

Introduction

The distribution of personal lines insurance is going through important changes, as new distributors challenge the market shares of traditional providers. This report analyzes the growth and decline of the main distribution channels, providing unique estimates and forecasts on personal lines distribution in the UK.

Scope

• Datamonitor' s unique distribution estimates by channel and platform
• Forecasts for the main distribution channels up to 2011, based on Datamonitor' s unique model and interviews with industry executives
• Analysis of the main developments within each of the main distribution channels
• Forecasts for internet distribution of new and total sale up to 2011

Highlights

Bancassurers have lost ground in the household insurance market in recent years due to competition from direct writers and partnerships. However, in 2006, bancassurers were able to regain some market share as a result of a renewed focus on selling this core product.

The direct channel failed to increase its share of the market in 2006. This is mainly a result of the fact that other players such as corporate partners, banks and some brokers have adopted distribution strategies akin to direct writers, by building up strong brand presences and using the internet and call centers to sell motor insurance.

The growth in popularity of the internet as a platform through which consumers buy personal insurance, has also been aided by the increasing popularity of aggregator and price comparison sites such as Comparethemarket.com and Gocompare.com.

Reasons to Purchase

• Obtain a comprehensive understanding of the key trends driving the changes to personal insurance distribution in the UK
• Gain insight into the shifting consumer motivations and purchasing strategies for personal insurance
• Plan your distribution strategy with confidence using Datamonitor' s channel and platform distribution forecasts

Table of Contents

• Overview
  • Catalyst
  • Summary
• Executive Summary
  • Distribution of personal lines insurance shifted towards partnerships with banks and brands in 2006
    • The partnership channel gained market share from brokers in the motor insurance market in 2006
    • Banks and building societies regained market share in the distribution of household insurance in 2006
    • Spending on insurance advertising contracted in 2006, but brand recognition remains strong for the largest insurers
  • Consumers have shifted their purchasing patterns towards the internet
    • The internet continued to gain market share in motor and household insurance in 2006
    • Online consumers are more price-conscious than consumers buying via other platforms
  • The direct channel remains the single largest route to market for personal insurance in the UK
    • The direct channel continued to distribute about two fifths of private motor insurance in 2006
    • Household insurance gross written premiums distributed through the direct channel contracted by one percentage point in 2006
    • AIG restructured its UK operations in 2007 and set up a direct arm called AIG Direct
  • Brokers maintained market share in home insurance, but their share in motor insurance declined in 2006
    • The broker channel' s share of the motor insurance market declined by one percentage point in 2006
    • Distribution of household insurance by brokers remained steady at 24% of the market in 2006
    • Activity in the broker channel has been centered on M&A deals, the largest of which involved the AA
  • Banks dominate the distribution of household cover but remain small in motor insurance
    • Banks remained only minor players in motor insurance distribution in 2006, accounting for 6% of GWP
    • Almost a third of all household GWP was arranged through the bank channel in 2006
    • HSBC renewed its partnership with Norwich Union in 2007
  • Brandassurers have become significant players in the distribution of personal lines
    • Affinity groups and retailers increased their share of the motor insurance market in 2006
    • Brandassurers accounted for an estimated 15% of the home insurance distributed in 2006
    • Tesco launched an aggregator website in 2007, heightening competition among price comparison sites
  • Brokers' share of personal insurance distribution will decline as other channels increase their share
    • Banks, partnerships and direct insurers are predicted to gain market share in motor insurance
    • The distribution of home insurance will continue to move away from the broker channel
• Table of Contents
• Table of figures
• Table of tables
• Personal Insurance Distribution Dynamics
  • Introduction
  • Distribution of personal lines insurance shifted towards partnerships with banks and brands in 2006
    • The partnership channel gained market share from brokers in motor insurance in 2006
    • Banks and building societies regained market share in the distribution of household insurance in 2006
    • Aggregators are becoming a force in personal insurance distribution, intensifying competition in most channels
  • In travel and pet insurance, brandassurers have grown at the expense of traditional competitors
    • The proportion of travel insurance sold through the travel trade has continued to fall
    • Pet insurance is increasingly distributed by brandassurers and direct writers rather than vets and welfare groups
  • The top 10 home and motor insurance providers in 2006 included a range of distribution channels
    • Direct insurers form the bulk of the largest private motor and household insurance distributors
    • Bancassurers accounted for only two of the top 10 distributors
    • The AA and Swinton were the only brokers to rank in the top 10 in 2006
    • Tesco' s highly successful general insurance business has secured brandassurers a place in the top 10
  • Spending on insurance advertising contracted in 2006, although brand recognition remains strong for the largest direct insurers
    • Direct Line has maintained its position at the forefront of consumers' awareness of insurance providers
  • Increases in marketing budgets were rare among the top 10 advertisers in 2006
    • In 2006, the top 10 advertisers reduced their spending by £28 million overall
  • In defiance of the market trend in 2006, three of the largest insurance advertisers increased spending
    • RIAS joined the top 10 in 2006 by increasing its advertising spend by 36.9%
    • Both RBSI subsidiaries in the top 10 increased advertising spending in 2006
    • The majority of general insurance advertisers scaled back their advertising spending in 2006
    • BUPA, the AA, Lloyds TSB and Saga also scaled back advertising in 2006, albeit to a lesser degree
• Personal Insurance Consumers
  • Introduction
  • The internet continued to gain market share in 2006 in motor and household insurance
    • New sales from online sources grew strongly in household and motor in 2006
    • The telephone remained the largest platform for arranging a motor policy in 2007, but the internet platform is growing fast
      • The telephone and face-to-face platforms have been declining steadily among motor insurance consumers
      • More consumers are turning to the internet to arrange their motor policies
    • Face-to-face arrangements of household insurance policies continue to decline in favor of phone and internet
      • Face-to-face distribution of household insurance has been declining for several years
      • The number of consumers arranging household insurance online or over the telephone grew in 2007
  • Consumers' insurance purchasing behavior varies by age and income
    • The internet is most popular among younger consumers as a platform for purchasing motor and household insurance
    • Arranging home or motor insurance over the telephone remained the most popular option for consumers, regardless of age
    • The face-to-face platform was most popular among older consumers in 2007
    • The face-to-face platform was most popular among low-income consumers
    • Affluent motor insurance consumers were the most likely to have purchased their insurance online in 2007
    • Arranging insurance over the telephone was popular at all income levels in 2007
  • Consumers' propensity for switching provider varies by platform used
    • More than a third of consumers who purchased their motor insurance online switched provider at renewal
      • Consumers purchasing their motor policies face-to-face, by phone or via post are unlikely to change provider
    • Consumers are more likely to switch if they purchase their household insurance online
    • Switching provider is more prevalent among younger consumers
      • Motor insurance consumers become less likely to change their provider as they age
      • The loyalty of household insurance consumers also increases with age
  • Online consumers are more price-conscious than consumers buying via other platforms
    • Consumers purchasing a motor policy via the internet are more likely to be motivated by cheaper quotes than others
    • Online household insurance consumers show greater price sensitivity than consumers using other platforms
• Direct Insurance
  • Introduction
  • The direct channel remains the single largest route to market for personal insurance in the UK
    • The direct channel continued to distribute two fifths of private motor insurance in 2006
    • Household insurance GWP distributed through the direct channel contracted by one percentage point in 2006
  • Direct writers' dominant position was supported by large advertising budgets in 2006
    • Direct insurers spent 60% of their advertising budget on motor insurance in 2006
    • Direct insurers spent over 50% of their advertising budget on television campaigns in 2006
    • Direct Line increased its insurance advertising spending enough to become the top advertiser in 2006
    • Direct Line' s advertising investment has given the firm superior brand recognition
  • Direct Line has spoken out against aggregators and in favor of buying direct
    • Direct Line warned consumers against aggregators in 2007 and highlighted the benefits of buying direct
    • RBSI brands other than Direct Line are available through Tesco' s aggregator
    • Most direct insurers make use of aggregators in distributing their policies
  • AIG restructured its UK operations in 2007 and set up a direct arm
    • Composite insurer AIG consolidated its brands and insurers in 2007 and established AIG Direct
    • A panel approach could give AIG a crucial edge in competitive markets
• Brokers and Intermediaries
  • Introduction
  • In 2006, brokers maintained market share in home insurance, but their share in motor insurance declined
    • The broker channel' s share of the motor insurance market declined by one percentage point in 2006
    • Distribution of household insurance by brokers remained steady at 24% of the market in 2006
  • Brokers have fought back against other channels by increasing advertising spending
    • Brokers increased advertising spending on insurance products by 38.4% in 2006
    • Direct mail remains the most important medium for brokers, although television is gaining ground
    • RIAS became the largest broker advertiser in 2006, narrowly outspending the AA
    • The AA maintained its lead over other brokers, the majority of which lack widespread brand awareness
  • Activity in the broker channel has been almost exclusively centered on M&A deals
    • The merger of the AA and Saga could have significant implications for the broker channel
    • Personal lines brokers were also involved in consolidation in 2007, although commercial brokers were more active
  • New and established brokers have significant personal insurance growth targets
    • Castle Cover began trading in 2006 and aims to write £100 million in GWP within five years
    • Swinton has announced growth plans for its personal lines business
    • The Budget Group has set the target of reaching £1.25 billion in GWP by 2010
• Banks and Building Societies
  • Introduction
  • Banks dominate the distribution of household cover, but their share in motor insurance remains small
    • Banks remained only minor players in motor insurance distribution in 2006, accounting for 6% of GWP
    • Almost one third of all household GWP was arranged through the bank channel in 2006
  • Bancassurers devote their advertising budgets to household products using direct mail
    • The top 10 bancassurers increased spending on most insurance products in 2006
    • Due to bancassurers' large established customer bases, direct mail remained their preferred advertising option
    • In 2006, Lloyds TSB continued to be the bancassurer that spent the most on personal insurance advertising
    • Despite decreasing its marketing effort in 2006, Halifax became the most recognized bancassurer in 2007
  • Some banks are stepping up their involvement in the distribution of personal insurance
    • HSBC renewed its partnership with Norwich Union in 2007
    • Alliance & Leicester re-entered the motor market in 2007, relaunching its product with a new insurer
    • Santander, which owns Abbey in the UK, applied to set up two new insurance vehicles in the UK in 2007
    • Lloyds TSB and Nationwide will compete on an aggregator for the first time
• Affinity Groups and Retailers
  • Introduction
  • Brandassurers have become significant players in the distribution of personal insurance lines
    • In 2006, affinity groups and retailers increased their share of the motor insurance market to 18%
    • Brandassurers distributed an estimated 15% of home insurance in 2006
  • Brandassurers mainly advertise motor insurance by television, but cut back on spending in 2007
    • The top brandassurers reduced their advertising spending by 26.7% in 2006 to £24.5 million
    • The top affinity brands and retailers spent more than half of their advertising budgets on motor insurance in 2006
    • Brandassurers cut back spending on most media in 2006, with outdoor and television media suffering the most
    • Tesco increased advertising expenditure by 20.1%, becoming the largest brandassurer advertiser in 2006
    • Tesco' s marketing outlays have secured the firm a large brand presence in the insurance market
  • Affinity partnerships have branched out into aggregators
    • Tesco launched an aggregator website in 2007, heightening competition among price comparison sites
    • Other brands have become interested in setting up aggregators as well
  • Most affinity deals announced in 2007 were small, but some existing partnerships have strong growth targets
    • Some existing partnerships announced strong growth targets in 2007
    • A few new affinity partnerships were announced in 2007
      • Car manufacturers and dealers have figured prominently in affinity deals
• Future Decoded
  • Introduction
  • Banks, partnerships and direct insurers are predicted to gain market share in the motor insurance market
    • The direct channel will continue to dominate the motor insurance market, although its share will be relatively stable
    • Banks are expected to grow their market share, reflecting individual banks' strong growth targets
    • The proportion of motor insurance GWP distributed through the partnership channel will grow as insurers revitalize existing deals
    • Brokers will continue to lose market share to other channels
    • Company staff and other agents will retain approximately the same market distribution share
  • The distribution of home insurance will continue to move away from the broker channel
    • Banks and building societies' share of the market will rise marginally due to investments in alternative distribution platforms
    • Direct insurers will remain largely stable in the market
    • Affinity partnerships will increase to 17% of GWP by 2011 as more brandassurers offer home cover
    • Brokers' home insurance market share will continue to contract in the forecast period
    • Company staff and other agents' share of the market will decline to 3%
  • The internet will grow as a distribution platform at the expensive of more traditional outlets
    • The proportion of all motor and household insurance sales that the internet accounts for is growing
    • New sales will also see strong growth in internet distribution
      • The internet' s share of new motor insurance sales is forecast to grow by around 21 percentage points by 2011
      • The proportion of new household insurance sales conducted online is also forecast to grow steadily until 2011
    • Aggregators' share of the private motor and household markets is expected to grow
• APPENDIX
  • Definitions
    • Premium income measures
      • Earned premiums
      • Gross Premium
      • Net Premium
      • Written premiums
    • Other definitions
      • Channel
      • Platform
      • Direct insurer/writer/channel
      • Brokers
      • Bancassurers
      • Brandassurers
  • Methodology
    • Primary and secondary research
    • Top 10 distributor estimates
    • Distribution estimates and forecast methodology
    • Advertising and marketing spend data
    • Ipsos MORI methodology and contacts
      • Sample design
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
  • List of Tables
    • Table 1: Motor insurance GWP distribution by channel, 2002-06
    • Table 2: Household insurance GWP distribution by channel, 2002-06
    • Table 3: Top 10 home and motor insurance distributors, 2006
    • Table 4: Overall personal lines insurance brand awareness, H1 2007
    • Table 5: Top 10 personal general insurance advertisers, 2005-06
    • Table 6: Datamonitor estimates of proportion of new sales transacted online in private motor and household, 2005-07
    • Table 7: Distribution of private motor insurance, by platform, 2003-07
    • Table 8: Distribution of household insurance, by platform, 2003-07
    • Table 9: Consumers buying motor and household insurance via the internet, by age group, 2005-07
    • Table 10: Consumers buying motor and household insurance by telephone, by age group, 2005-07
    • Table 11: Consumers buying motor and household insurance face-to-face, by age group, 2005-07
    • Table 12: Consumers buying motor and household insurance face-to-face, by income, 2005-07
    • Table 13: Consumers buying motor and household insurance via the internet, by income, 2005-07
    • Table 14: Consumers buying motor and household insurance by telephone, by income, 2005-07
    • Table 15: Propensity to switch motor provider and likelihood of getting other quotes, by distribution platform, 2007
    • Table 16: Propensity to switch household provider and likelihood of getting other quotes, by distribution platform, 2007
    • Table 17: Private motor retention rates by age, 2007
    • Table 18: Household insurance retention rates by age, 2007
    • Table 19: Motivations for taking out a motor insurance policy, by distribution platform, 2007
    • Table 20: Motivations for taking out a new household insurance policy, by distribution platform, 2007
    • Table 21: The direct channel' s share of motor and household insurance, 2002-06
    • Table 22: Top 10 direct insurers' advertising spend by product, 2004-06
    • Table 23: Top 10 direct insurers' advertising spending by medium, 2004-06
    • Table 24: Top 10 direct insurers' advertising spend, 2004-06
    • Table 25: Direct insurers' spontaneous brand awareness, 2007
    • Table 26: The broker channel' s share of motor and household insurance, 2002-06
    • Table 27: Top 10 brokers' advertising spend by product, 2004-06
    • Table 28: Top 10 brokers' advertising spend by medium, 2004-06
    • Table 29: Top 10 broker advertisers, 2004-06
    • Table 30: Top brokers' spontaneous brand awareness
    • Table 31: Banks and building societies' share of motor and household insurance, 2002-06
    • Table 32: Top 10 bancassurers' advertising spend by product, 2004-06
    • Table 33: Top 10 bancassurers' advertising spend by medium, 2004-06
    • Table 34: Top 10 bancassurance advertisers, 2004-06
    • Table 35: Top 10 bank and building societies' spontaneous brand awareness, 2007
    • Table 36: The partnership channel' s share of motor and household insurance, 2002-06
    • Table 37: Top affinities and retailers' advertising spend by product, 2004-06
    • Table 38: Top affinities and retailers' advertising spend by medium, 2004-06
    • Table 39: Top affinity groups and retailers' advertising spend, 2004-06
    • Table 40: Top retailers and affinities' spontaneous brand awareness, 2007
    • Table 41: Private motor insurance distribution forecast by channel, 2007-11
    • Table 42: Household insurance distribution forecast by channel, 2007e-11f
    • Table 43: Online sales as a proportion of total sales forecast, 2007e-11f
    • Table 44: New online sales as a proportion of all new sales forecast, 2007e-11f
  • List of Figures
    • Figure 1: The partnership channel has increased its share of the private motor market in recent years
    • Figure 2: Banks increased their share of the household insurance market in 2006
    • Figure 3: The top 10 insurance providers distributed just under half the total home and motor premium income in 2006
    • Figure 4: Although both RBSI direct brands enjoy high consumer awareness, Direct Line remains the clear leader
    • Figure 5: The majority of the largest insurance advertisers reduced advertising spending in 2006
    • Figure 6: Internet sales are rapidly growing in motor while online home insurance sales have lagged
    • Figure 7: The percentage of consumers arranging their motor insurance online has been increasing steadily since 2003
    • Figure 8: Phone remains the largest distribution platform for household insurance in 2007
    • Figure 9: Younger consumers were most likely to purchase home or motor insurance online in 2007
    • Figure 10: Consumers of every age group remain most comfortable arranging their insurance by telephone
    • Figure 11: The proportion of motor insurance bought face-to-face increased with age
    • Figure 12: The face-to-face platform declined in popularity among more affluent consumers in 2007
    • Figure 13: Consumers in the highest income brackets were most likely to buy motor and household insurance via the internet in 2007
    • Figure 14: Use of the telephone to arrange household insurance rose slightly relative to household income in 2007
    • Figure 15: Consumers purchasing their motor insurance online were more likely to change their insurance provider in 2007
    • Figure 16: Consumers are most likely to switch from an insurance provider when they purchase their household insurance online in 2007
    • Figure 17: Older consumers were more likely to stay with their current providers in 2007
    • Figure 18: Consumer loyalty increased with age among household insurance consumers in 2007
    • Figure 19: Obtaining a cheaper quote was the most common reason for choosing a provider across all distribution platforms in 2007
    • Figure 20: There is a greater price awareness among consumers who purchase their household insurance online in 2007
    • Figure 21: Direct players are a significant presence in both the home and motor markets
    • Figure 22: Direct insurers continue to spend most of their advertising budgets on just two lines: motor and household
    • Figure 23: In 2006, insurers continued to spend the majority of their advertising budgets on television campaigns
    • Figure 24: Direct Line spent the most on insurance advertising in 2006
    • Figure 25: RBSI' s advertising investments have paid off in terms of customer awareness
    • Figure 26: A number of the top direct insurance brands are on the Tesco Compare website
    • Figure 27: Brokers maintained their market share in household insurance, but their share in motor insurance continued to decline
    • Figure 28: Broker advertising spending was heavily concentrated on motor and household insurance
    • Figure 29: Television advertising became more important for brokers in 2006 as they sought to reach new consumers
    • Figure 30: RIAS and the AA accounted for almost half of the top 10 brokers' advertising spend in 2006
    • Figure 31: The AA continues to be the most recognizable broker due to its years of brand investment
    • Figure 32: Banks maintained a large portion of household GWP, but failed to increase their share of the motor market
    • Figure 33: In 2006, bancassurers continued to spend the majority of their advertising budget on household insurance
    • Figure 34: Direct mail remained the preferred marketing method for bancassurers in 2006
    • Figure 35: Lloyds TSB spent by far the most on general insurance advertising in 2006
    • Figure 36: Halifax was the most recognized bancassurance brand in 2007
    • Figure 37: Affinity partnerships accounted for 18% of motor and 15% of home insurance GWP in 2006
    • Figure 38: Brandassurers spent over half of their advertising budget on motor insurance in 2006
    • Figure 39: Television and direct mail were the favored forms of advertising for brandassurers in 2006
    • Figure 40: Tesco spent roughly twice as much on advertising as its closest rival British Gas in 2006
    • Figure 41: Other retailers only have a fraction of Tesco' s brand presence in the insurance market
    • Figure 42: Tesco was one of the first affinities to launch an aggregator website
    • Figure 43: Brokers are expected to continue to lose market share in the future
    • Figure 44: Banks will continue to dominate household insurance distribution
    • Figure 45: The proportion of motor and home insurance bought on the internet is forecast to grow quickly
    • Figure 46: New online sales as a proportion of all new sales will rise steadily over the next five years