UK Home Insurance Consumer Research Report July 2019: 80% of Adults are Householders, of which 53% Own their Homes and 28% Rent their Homes – ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)-- The "UK Home Insurance Consumer Research Report July 2019 " report has been added to ResearchAndMarkets.com's offering.

Not all householders are insured Householders, defined as individuals who either own their own home (with a mortgage or outright) or who rent their home, represent eight-in-ten adults in the UK. The penetration of homeownership rises very strongly with rising age, income, and social grade, while the penetration of renting declines strongly with rising age, income, and social grade.

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

Key facts

• 80% of adults are householders, of which 53% own their homes and 28% rent their homes.
• 71% of adults own any type of home insurance. While most householders (77%) have home insurance, 23% go uninsured.
• Adults who own their own homes - either outright or with a mortgage - represent 67% of all adults with home insurance.

Key Topics Covered:

1. EXECUTIVE SUMMARY

• Not all householders are insured
• And not all the insured are householders
• Risk aversion and value perceptions strongly motivate home insurance ownership
• Being a confident savvy consumer helps encourage insurance cover
• The Age Dichotomy
• Many policyholders may shop online but they are flexible in their approach
• The circular flow of online attitudes
• Policyholders like combined, standalone policies and few opt for policy add-ons
• Significant potential for Smart Home technologies
• The Customer Journey is often a repeat trip
• Price comparison websites (PCWs) the prime research resource
• A fine balance between price and cover
• Policyholders have very few problems being a customer
• Beware the journey's end: policyholders are not very loyal
• Six-in-ten policyholders could be good cross-selling prospects

2. INTRODUCTION

3. PROFILE OF THE INSURED

• Key findings
• 80% of adults are householders
• Age, social grade and income the major influences on householders
• Seven-in-ten adults own home insurance
• Insurance ownership tends to rise with age and affluence

4. HOW CONSUMERS APPROACH INSURANCE

• Key findings
• Risk aversion and value perceptions
• Attitudes strongly influence insurance ownership
• Confidence and self-reliance
• Insured householders are the most likely to know what they are doing
• The age division
• Predisposition toward an online customer journey
• Insured householders are the most focused on an online customer journey
• Circular movement in agility

5. THE TYPE OF INSURANCE OWNED

• Key findings
• Consumers prefer buying combined buildings and contents cover
• Homeowners represent almost seven-in-ten insured adults
• Separate policy ownership peaks in London
• Adults doubting the value of insurance often buy contents or buildings only policies
• Most policyholders buy standalone policies
• Most policyholders pay for their insurance annually
• Few policyholders take out add-ons with their insurance
• Potential for home telematics or Smart Home technologies
• Young affluent policyholders the most open to a Smart Home offer
• But there is potential for insurance-linked sales among more mature and less affluent policyholders

6. THE CUSTOMER JOURNEY BEGINS

• Key findings
• Most policyholders are repeat purchasers
• Over four-in-ten policyholders renew
• Switching is a sign of confidence and discontentment
• The importance of the renewal prompt
• Renewing does not mean accepting, especially if you have a combined policy
• Most policyholder who renew are pro-active

7. BUYING A POLICY: FINDING THE RIGHT DEAL

• Key findings
• Price comparison websites the prime research resource
• Ease of use and information the key positives of PCWs
• Online attitudes drive online self-discovery
• The PCW dominance is here to stay
• Policyholders can find brokers but lack the trust to use them
• Policies are purchased primarily directly from the provider
• Purchasing by policy

8. PRICE, COVER OR BRAND

• Key findings
• Five buying strategies
• Policyholders shop online to get the right cover and a low price
• Seven-in-ten policyholders negotiate
• But can consumers negotiate from a position of strength?
• It's the volume of paperwork that limits knowledge

9. BEING A POLICYHOLDER

• Key findings
• For most policyholders, owning a policy is a problem-free experience
• Be careful, it's your most affluent customers you are annoying the most
• Online policy management now becoming the norm
• 9% of policyholders have claimed within the last year
• Problems and claims often go hand-in-hand
• The claims process goes smoothly for most claimants, resulting in high levels of satisfaction

10. ENDING THE JOURNEY: CUSTOMER LOYALTY AND SWITCHING

• Key findings
• Policyholders do not stay very long
• And loyalty is not about to increase soon
• Switching is strongly price led
• Little evidence for price walking

11. CROSS SELLING OPPORTUNITIES

• Key findings
• Home insurance policyholders are a prime market for insurance products
• Large gaps in insurance coverage for electronic products

Companies Mentioned

• Direct Line
• Financial Conduct Authority (FCA)
• MIS Group UK

For more information about this report visit https://www.researchandmarkets.com/r/da6ari

View source version on businesswire.com: https://www.businesswire.com/news/home/20190715005453/en/

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Related Topics: Property Insurance

Source: Research and Markets