Home Insurance Consumer Research Report Launched

27 Jun 2019

Three quarters of households have home insurance

Seven-in-ten adults own any type of home insurance, with the result that around three-quarters (77%) of householders have insurance cover and around one-quarter go without cover. Like home ownership, 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.

Risk aversion and value perceptions motivate home insurance ownership

Owning home insurance is strongly motivated by risk aversion and perceptions of the value for money of insurance. Consumers who are risk averse and think insurance is good value for money are the most likely to be insured, while those who are not risk averse and do not see insurance as good value for money are less likely to be insured.  Householders who have home insurance are more likely than other consumer groups to be confident insurance buyers, especially those who feel confident enough to buy insurance without the need for professional help

Almost half of home insurance policyholders like an online journey

The Customer Journey to buy home insurance for most individuals is a repeat process: they begin their journey as existing owners of an insurance policy. The decision faced by these repeat purchasers is either to switch from an existing provider to another or to renew a policy with an existing provider.  The start of the journey for these individuals is often the renewal prompt.

While over four-in-ten policyholders ultimately tend to renew with an incumbent provider, renewing is not a passive act, but rather an act which is taken only after alternative policies are evaluated and/or the policyholder has tried to better the renewal premium quote. Renewing like switching involves a search for alternative policies and negotiation with insurance providers on price and cover.

A slender majority of home insurance policyholders adopt a flexible, agile approach to arranging insurance, showing a willingness to research and buy insurance via both online and offline channels. However, almost half of policyholders show a preference for carrying out some or all of their customer journey online. Policyholders who are more willing to use online for all or part of their customer journey tend to be confident when buying insurance and less in need of advice and assistance.

Some potential for smart home technologies in the home insurance market

Currently, very few policyholders have Smart Home technologies installed and even fewer acquired those technologies with their home insurance. However, almost four-in-ten policyholders are interested in getting Smart Home technologies if the technology came with a home insurance policy offer.

 

The home insurance report

For this report, IRN Research commissioned research from MIS Group’s UK panel. The research was structured so that 2,051 consumers aged 18+ were asked if they owned an insurance policy. This generated 1,457 individuals who owned a home insurance policy.

This report examines the motivations, experiences and opinions of the UK home insurance customer. It identifies and analyses consumer attitudes towards home insurance, looks at the claims experience of policyholders, and investigates why they choose one route to purchase over another. In addition, it will explore how price sensitivity is impacting the market. Essentially, the report studies the policyholder’s customer journey from the point where they recognise a requirement to make a purchase to the point when they are a customer and may run into issues like claiming or registering a complaint.

This report (94pp) and the detailed dataset of all survey results with a demographic analysis is available directly from IRN Research, priced at £2,500 (£3,000 including VAT).  Discounts for multiple report purchases, report only, dataset only, or purchases of extracts are available.

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Home Insurance Market Trends Report 2019

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