The brands making post-GIPP market motor share gains

Momentum	Mar-22 to Aug-22
Churchill	1.3%
AA	1.0%
Aviva	0.9%
Hastings	0.6%
Tesco	0.5%
Zenith	0.5%
Dial Direct	0.4%
Admiral	0.5%
One Call	0.3%
LV	0.3%

Min sample = 30

 

The results are the first look at a complete six-month period since the FCA’s pricing reforms, which saw groups reassess their strategies, with many big brands prioritising retention over competitive new business pricing.

 

Churchill gaining for DLG

In its third quarter trading update, Direct Line Group reported that new business had dropped after it took action to improve margins in motor, but that it had picked up as the market hardened over the quarter.

Our momentum figures show a careful brand management strategy in play, with Churchill coming to the fore to pick up more new customers, while Direct Line had some of the market’s best customer loyalty and retention rates.

Churchill’s gains mean it is now the third biggest brand for UK motor insurance - and level with Direct Line.

The AA made the second largest market share gains. It received a boost from Beam, a new brand targeted at PCW distribution which launched in April.

For Aviva, its flagship brand gained 0.9% of the total market, while stablemate QuoteMeHappy lost 0.4%. Whilst Aviva as a brand is gaining momentum, as a group there has been little change in total policy count. The Aviva brand has produced better retention rates, however, with 67.9% of customers renewing in the six months to 1 August 2022, compared with 61.8% of QuoteMeHappy customers.

Rate of change	Mar-22 to Aug-22
Zenith	136.8%
Dial Direct	95.8%
The AA	28.6%
One Call	27.6%
1st Central	24.5%
Churchill	21.2%
Tesco	18.4%
Aviva	12.8%
Sheilas' Wheels	11.8%
esure	10.1%

Min sample = 30

The market average retention figure rose from 61.6% in the six months from October 21 to March 22, to 66.4% the following six months. As widely reported, GIPP has so far led to fewer customers shopping around at renewal, feeling reassured that their quote is no worse than a new business customer’s.

There were some star performers above this already higher rate, with NFU Mutual and Direct Line topping 80%. Tesco and AXA were the only top momentum brands with below-market-average retention, indicating that more of their gains were driven by customer acquisition.

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