Insurance Consumer and BTE Insurance Reports Launched
02 Sep 2019
IRN Research launched two new, shorter insurance consumer research reports:
- Insurance Consumer
- Before-the-Event Legal Expense Insurance
Insurance Consumer report
Insurance Consumers spend £25 billion on general insurance
In 2018, UK consumers are estimated by IRN Research to have spent around £25 billion on general insurance premiums, rising to around £26 billion in 2016. Virtually all consumers (92%) own at least one type of general insurance product.Insurance ownership is so high because virtually all consumers own something or do something which can or may require insurance cover: in other words, consumers have risks that need covering.
Younger and less affluent insurance consumers the most likely to be under-insured
Across all consumers, as the number of insurable risks faced rises, so insurance ownership also tends to rise, however, the relationship is not a simple linear one. In fact, insurance cover is often mis-matched to the risks faced and being under insured is the norm across all consumers. Consumers as a whole face on average 4.5 insurance risks but tend to own only 3 different types of insurance. While, in general, as insurance ownership rises insurance cover becomes more aligned to the risks faced, most poorer and younger consumers have inappropriate levels of insurance (i.e. more likely to have more risks than insurance owned) and only the wealthier and more mature consumers have appropriate levels of insurance (i.e. more likely to have the same number of risks as types of insurance owned).
Three types of insurance consumer
Based on how they approach buying insurance, including their risk attitudes, self-confidence, self-reliance and the online focus, consumers can be classified into one of three groups.
- Intrepid Buyers. Consumers who are very confident about buying insurance and also very self-reliant. They tend to have significant insurable risks which are covered with relatively high levels of cover. These consumers find it easy to go into the market and buy insurance. Most consumers in this group want to complete part or all of their customer journey online.
- Timid Buyers. These consumers are the mirror image of Intrepid Buyers. They lack confidence when buying insurance and want substantial support. A relatively high percentage of this group are Uninsured or selectively insured despite the fact that nearly eight-in-ten faced medium or high insurable risks. This group lacks the confidence and self-reliance to favour completing their customer journey online.
- Intermediate Buyers. As their name implies, these consumers sit between the above two groups, being more confident and self-reliant compared with Timid Buyers but less so compared with the Intrepid Buyers.
The Insurance Consumer Report
This report is a standalone report and can also be seen as a supplement to the market specific general insurance reports produced by IRN Research. Where the market-specific reports consider consumer actions and customer journeys with respect to a specific type of insurance policy, this report examines the motivations of all UK consumers towards taking out general insurance products. This report identifies and analyses consumer attitudes towards insurance, the types of insurances they own and present some comparative analysis of how consumers buy insurance. The report focuses on profiling consumers by their generic ownership of insurances and the insurance risks they face, assessing how consumers approach insurance, how consumers start their journey towards buying general insurance each year. It finishes by considering the relative importance of price, cover and brand when buying
For this report, IRN 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 1,878 individuals who owned at least one of the major types of general insurance policy.
This report (76pp) and the detailed dataset of all survey results with a demographic analysis is available directly from IRN Research, priced at £500 (£600 including VAT). Discounts for multiple report purchases, report only, dataset only, or purchases of extracts are available.
Before-the-event Legal Expense Insurance
25% of consumers say they own before-the-event (BTE) legal expense insurance (LEI). BTE legal expense insurance is defined as insurance providing cover against the cost of legal expenses associated with bringing or defending a legal action, including the policyholder’s own legal fees and the other party’s cost should they lose. With 25% of adults owning, this means around 13 million adults are aware they have LEI cover. Legal expense insurance ownership tends to be biased towards consumers who are: Male; Aged 35+; from the AB social grades; and have net monthly household income of £2,000 and above: i.e. mature, affluent men. The BTE LEI market is primarily an add-on market. Only 11% of individuals owning legal expense insurance took out a separate standalone policy.
LEI policyholders are confident, self-reliant insurance buyers. When selecting insurance, LEI policyholders pay more attention to the cover on offer (rather than just the price) compared with consumers as a whole, and are more cover focused compared with other consumers owning insurance (but who do not own LEI). Moreover, when selecting insurance, LEI policyholders also show a stronger preference for buying from well-known insurance brands, compared with consumers as a whole and compared with other consumers owning insurances (but who do not own LEI insurance.
This report considers how many consumers have BTE LEI cover, how this cover was taken out and how individuals owning such insurance approach insurance buying in general.
For this report, IRN 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 503 individuals who owned BTE legal expense insurance.
This report (41pp) and the detailed dataset of all survey results with a demographic analysis is available directly from IRN Research, priced at £300 (£360 including VAT). Discounts for multiple report purchases, report only, dataset only, or purchases of extracts are available.
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