As home insurance brands have adapted their pricing strategies post GIPP - the FCA’s pricing reforms that banned price walking - the winners and losers of market share are starting to change.

 

We’re seeing growth from some of the market’s newer brands – and a focus on retention from those with a larger back book.

Our Insurance Behaviour Tracker records the renewal journeys of 2,000 customers each month and shows which brands are rising and falling…

Market share

Aviva has consolidated the position of its main brand at the top of the table, although it’s concentration here has seen online-only sidekick QuoteMeHappy shrink modestly.

In Group terms, however, Direct Line Group retains the largest market share. Its brands including Churchill and Privilege delivering an 11% share of market.

 

Top 10 for market share

Market share

Oct-21 to Mar-22

Aviva

8.3%

LV

6.5%

Direct Line

5.7%

Admiral

5.2%

Saga

4.7%

Policy Expert

4.3%

Churchill

4.2%

AXA

4.0%

Halifax

3.8%

Sainsburys

3.3%

 

However, Policy Expert made the largest strides in our momentum measure, covering the six months to 31 March 2022, adding 1.3% of the total market to its customer count - and more than twice its gain for the previous six months.

Meanwhile some of the other dynamic younger players and bigger motor brands eyeing an opportunity to grow their home books have picked up the pace.

British Gas, for instance increased its customer count by 41.7%, followed by Policy Expert with 41.2%, Sheila’s Wheels, Sainsbury’s, RIAS and One Call – increasing its customer count by 30%.

Retention rising

Retention is also at play, and playing into the hands of those with bigger back books.

More customers renewed their insurance with their current provider in the latest period, with the market average retention rate rising from 63.2% to 66.9% in the last 12 months.

The top four brands for retention were absent from the top table for market share gain, emphasising the divergence of strategies between companies focused on renewal and those focus on new business.

Top 10 for retention

Retention

Oct-21 to Mar-22

NFU Mutual

83.3%

Nationwide

79.7%

Santander

78.0%

Lloyds Bank

77.9%

Sainsburys

77.9%

Barclays

76.6%

Admiral

75.3%

Policy Expert

73.9%

Aviva

73.9%

LV

73.0%

 

Ian Hughes, CEO at Consumer Intelligence, commented: “These are relatively dynamic times for home insurance – but don’t expect things to stay the same over the next six months.

“Policy-holders content to auto-renew may well be driven to shopping around again as the cost of living takes its toll – and new products and brands could find even firmer footing as people look for affordable alternative options. Let’s see where the next six months takes us.”

 


Understand consumer behaviour throughout the renewal process

Enhance decision making, performance monitoring and planning by understanding consumer behaviours, attitudes and intentions at insurance renewal.

Insurance Behaviour Tracker (IBT) is the most comprehensive insurance focused consumer survey in the market. It provides insight and understanding of consumer behaviour throughout the renewal process, giving you a view of market trends, and brand performance. This will enable you to make informed decisions to allow you to build robust marketing and business plans and track results.

Learn more


 

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