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The ever-rising premiums for motorists stand in sharp contrast with what’s happening in the home insurance market. 


Figures to be released next week by Consumer Intelligence will show the market has remained flat in the latest quarter, despite October’s 0.5% increase in insurance premium tax. 

We’re also seeing intense competition between well known brands to secure a place as one of the top five cheapest quotes on price comparison websites. Previously some had been more inclined to rely on brand strength to win customers. 

Three quarters of shoppers shopped around at renewal time in the three months to August, our insurance behaviour tracker shows. That’s a record high. 

The proportion of those who are shopping around for insurance that switch has inched up ever so slightly, with 49% of those who got quotes from other providers changing insurer, compared with 48.4% last year.

What’s really changed is the reasons why people stay. The biggest reason for staying with the same provider after shopping around has always been that the incumbent insurer offered a lower premium to entice them to renew. In the latest quarter the number one reason for staying put was that consumers couldn’t find a cheaper quote somewhere else.

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It could be that the fiercely competitive rating environment means brands are deciding they can’t afford to lower their prices further, or that some have consciously moved away from the dual pricing that appears to penalise loyalty.

Shopping around isn’t going away. For consumers to find out that they’re better off staying put will provide a sorely needed boost to confidence and trust in their insurance provider.

 


Consumer Intelligence Home Price Index

Next week we will publish our Q3 Home Insurance Price Index. Register here  to receive your free copy:

Home Insurance Price Index

 


 

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