Abstract
Introduction
This report provides an analysis of the distribution of personal insurance in
the UK. It includes information on the advertising spend and market share of
the key players and analyzes the effect of online aggregators in the personal
lines sector. It also details notable deals made over the past year and
explores the evolving balance between the various distribution channels.
Scope
*Insight into the latest issues affecting the personal insurance market and
the impact these are having on distribution.
*Data on consumer purchasing behavior and brand loyalty in the UK household
and private motor insurance markets, sorted by key demographic groups.
*The latest data on the size of the personal insurance market and premium
splits by distribution channel.
*Forecasts up to 2014 of the market share of different channels in the UK
private insurance space.
Highlights
As of March 2010, the internet was the most popular platform for arranging
motor insurance overall, with more than half of all respondents stating that
they had used the platform. This highlights consumers’ confidence in
arranging the policies and other financial transactions online without
assistance.
Overall, the top 10 insurance advertisers spent 1.1% less on advertising in
2008 compared to 2007, dipping from £216.4m overall to £214.0m. This
was perhaps indicative of the effect the economic recession had on the
insurance sector as a whole, rather than due to a specific trend.
Carole Nash insures 300,000 motorcycles, which equates to about a quarter of
all licensed bikes in the UK. Since acquiring more than 17,000 policies from
the AA in 2004, Carole Nash has been purchasing motorcycle books from those
who do not consider them a core product.
Reasons to Purchase
*Understand consumer purchasing patterns and their attitudes to brand
awareness and aggregators.
*Make decisions based on consumers’ use of different platforms for
personal insurance arrangement and the shifting trends within the market.
*Gain insight into the factors driving changes in distribution and how this is
linked to modern technology.
Table of Contents
Overview 1
Catalyst 1
Summary 1
Executive Summary 2
The direct
channel gained market share, while brokers saw their share decline 2
The
direct channel remains the dominant provider of private motor insurance 2
Banks and building societies hold the largest share of the UK home insurance
market 2
The top 10 advertisers increased their expenditure compared to
2008 2
The vast majority of consumers use the internet or telephone to
arrange their motor insurance cover 3
Half of all consumers arrange their
motor insurance over the internet 3
Consumers aged between 25 and 34 are
more likely to arrange their motor insurance online 4
The broker channel
has been gradually growing its household insurance market share 4
Brokers
distributed an estimated 28% of the private motor insurance GWP in 2009 4
Brokers hold a growing share of the home insurance market 4
Banks and
building societies lost personal insurance market share in 2009 5
Bancassurers hold the largest share of the UK household insurance market 5
The presence of affinities has decreased in the UK home and motor insurance
markets 6
Affinity groups and retailers saw a slight dip in their private
motor market share from 2008 6
Fortis procures significant partnerships to
provide Tesco and Toyota with home and motor insurance 6
Over 60% of
consumers use an aggregator when purchasing motor insurance 6
A sizeable
proportion of aggregator visitors use them for research purposes only 6
Table of Contents 7
Table of figures 8
Table of tables 9
Personal
Insurance Distribution Dynamics 10
Introduction 10
The direct channel
gained market share, while brokers saw their share decline 10
The direct
channel remains the dominant provider of private motor insurance 10
The
broker channel is the second largest distributor of private motor insurance
10
Corporate partnerships witnessed their share contract in the private
motor market 10
The banks and building societies market share is
diminishing 11
Banks and building societies hold the largest share of the
UK home insurance market 12
The majority of home cover sales can be
attributed to banks and building societies 12
Brokers closed the market
share gap with the bancassurers in 2008 and 2009 12
The direct channel
retains a level share of the household insurance market 12
Partnerships
share of the UK home insurance market has declined 13
The vast majority of
home and motor insurance policies are distributed through the top 10 groups
and brands 14
Thirteen of the largest insurance groups hold the majority
of both the home and motor insurance markets 14
Direct Line is
particularly popular among younger consumers for private motor insurance
16
Older consumers are more likely to select a home insurance policy
targeted at their age group 18
Direct Line' s and Halifax' s combined
contents and buildings insurance policies are particular popular among younger
consumers 20
Home contents insurance providers showed little age to market
correlation, aside from RIAS and Saga 22
Consumers aged 18-24 were most
likely to arrange buildings only home insurance policies through a top ten
distributor 23
Two aggregators appeared in the top 10 advertisers in 2009
25
The top 10 advertisers increased their expenditure compared to 2008
25
RBS brands Direct Line and Churchill were two of the top three
insurance advertisers in 2009 25
Zurich Insurance became a top 10
advertising spender after more than doubling its advertising spending in 2009
25
Acromas Group insurers decreased their advertising spend in 2009 25
Aviva resumes its high advertising spend from 2007 25
The top insurance
advertisers spent half their budgets on television advertising in 2009 27
While TV advertising remains the medium eliciting the most expenditure, direct
mail has increased in prominence as an advertising platform 27
Saga and
HomeServe spent the most on direct mail advertising 28
Press, radio and
the internet were used to a lesser extent in insurance advertising 28
Personal Insurance Consumers 30
Introduction 30
Home and motor
insurance remain the largest potential pools of customers for personal lines
insurers 30
The sizable market for private motor insurance included a
larger and more even penetration spread than in 2008 30
Middle-aged and
older consumers are more likely to have motor cover, perhaps necessitating a
more universal strategic focus than before 30
Motor insurance consumers
with higher incomes have higher penetration rates 31
The social grade of
consumers has less bearing on the likelihood of arranging motor insurance
32
Combined household insurance is the most popular type of product sold
to consumers 33
There is a healthy market for home insurance products
33
Consumers over the age of 55 are the largest target market for combined
policies 34
Higher income households have higher penetration rates for
combined home insurance and buildings only cover 35
Consumers belonging to
socio-economic groups A and B display consistently higher penetration rates
for combined household products 37
The vast majority of consumers use the
internet or telephone to arrange their motor insurance cover 39
Half of
all consumers arrange their motor insurance over the internet 39
Internet
and telephone sales are becoming increasingly prevalent in the home insurance
market 40
Internet sales strategies would prove more effective than
telephone sales for younger personal insurance policy buyers 41
Consumers
aged between 25 and 34 are more likely to arrange their motor insurance online
41
The telephone surpasses the internet as the most popular platform for
arranging home contents insurance 42
Consumers aged over 64 prefer to use
the phone to arrange their insurance policies, whereas other groups prefer to
use the internet 44
Internet-based sales strategies are effective at
targeting higher income households 46
To a point, higher income consumers
are more comfortable purchasing their motor insurance cover online 46
Internet selling strategies for combined home insurance should remain the core
method of targeting consumers with household incomes over £30,000 47
Consumers are generally more likely to purchase their home contents insurance
over the telephone 49
The internet was the most popular method of motor
insurance arrangement 50
Consumers belonging to socio-economic group E
displayed the lowest tendency to purchase their motor insurance online 50
A and E consumers prefer to purchase their combined policy over the telephone
52
The telephone is the preferred platform for arranging home contents
insurance policies 53
Insurance providers' retention rates vary with age
and type of insurance 55
Older consumers are generally more likely to stay
with their existing insurance company 55
Consumers aged under 34 displayed
the least loyalty to their insurance providers 55
Consumers aged 45-64 are
more likely to stay with the same home contents insurance provider at renewal
56
Retention rates for combined home insurance peak with middle-aged
consumers 58
Wealthier consumers are the least loyal to their home
insurance providers 60
Motor insurance consumers displayed a similar level
of switching among all income bands 60
Consumers earning less than
£15,000 are least likely to change their combined insurance provider
62
Consumers with a household income of £75,000-99,999 are the most
loyal to their home contents insurance policy providers 64
Price should be
the primary focus in insurance marketing campaigns 66
Price was the most
commonly cited reason for selecting a motor insurance provider 66
Insurance companies should emphasize competitive prices when marketing their
combined policies 67
While price remains the dominant attraction for
insurance buyers, older consumers are more likely to consider other factors
69
Although it remains the key factor, older consumers of motor insurance
are less concerned about price 69
Older consumers increasingly value
non-price factors when choosing their home insurance providers 70
Direct
Insurance 72
Introduction 72
Direct insurers have a growing share of
the private motor market 72
Direct insurers have experienced an increase
in their market share in private motor cover since 2006 72
Direct insurers
hold a level share of the household market 72
The top direct insurers
significantly increased their overall advertising budget 74
Advertising
spend on motor and travel insurance decreased, while expenditure on other
forms of general insurance increased by varying amounts 74
All forms of
media advertising saw increased direct insurer funding, apart from cinema
campaigns 76
Direct Line remained the top direct insurance advertiser in
2009, albeit by a smaller margin 78
Direct Line still dominates most areas
of motor and home insurance 80
The top five direct insurers comprised over
a quarter of the motor insurance market 80
Direct insurers consistently
form the top five players in the home insurance market 82
Direct insurers
continued to launch new products in a bid to their grow market share 83
AXA launched a new direct motor cover product 83
Zurich launched its new
Zurich Connect product 83
Fortis will rebrand itself to Ageas 83
RBS
Insurance is to sell Direct Line and Churchill within a few years 84
esure
has undergone a management buy-out from the Lloyds Banking Group 84
Brokers and Intermediaries 85
Introduction 85
The broker channel has
been gradually growing its household insurance market share 85
Brokers
distributed an estimated 28% of the private motor insurance GWP in 2009 85
Brokers hold a growing share of the home insurance market 85
The main
focus of broker insurance advertising was via direct mail 87
The top 10
brokers allocated most of their advertising budget on private motor and home
insurance marketing 87
Brokers continue to display a marketing strategy
that is primarily focused around the direct mail platform 88
The AA cut
its advertising spend, while RIAS significantly increased its budget 90
The AA dominated over other insurance brokers in both home and motor insurance
92
The AA was the market leader for broker-distributed private motor
insurance 92
The broker household insurance market is dominated by AA,
RIAS and Swinton 94
The broker sector has seen a number of big structural
changes over the last year 96
LV Broker makes full use of its broking
relationships 96
Brightside purchased eCar and eBike for up to £34.6m
96
Allianz Clear launches and incorporates a home insurance aggregator
96
Swinton increased its online sales effort 97
Castle Cover adds
Zenith insurance to its panel 97
Carole Nash wins the Co-operative
motorcycle book 97
Banks and Building Societies 98
Introduction 98
Banks and building societies lost personal insurance market share in 2009
98
Bancassurers held an estimated 5% share in the private motor market in
2009 98
Bancassurers hold the largest share of the UK household insurance
market 98
Spending by the leading bancassurance advertisers decreased in
2009 100
Bank insurers more than tripled their spend on marketing their
general/combined range, despite overall cuts to their budgets 100
In 2009,
banks showed a slight swing toward a more contemporary mass-market advertising
strategy 102
Half the top 10 bancassurers showed an increase in
advertising budget in 2009 104
Banks hold a significant proportion of the
home insurance market, but only have a small presence in motor insurance
107
Bancassurers have a diminished and negligible market presence in motor
insurance 107
Lloyds Banking Group controls a significant share of the UK
home insurance market 108
Barclays will continue to distribute Aviva home
insurance 110
Despite decreased consumer confidence, bancassurers are
still targeted by insurers as a means to growth 112
Barclays will continue
to distribute Aviva home insurance 112
RSA will provide West Bromwich BS
with household insurance policies 112
Affinity Groups and Retailers
113
Introduction 113
The presence of affinities has decreased in the
UK home and motor insurance markets 113
Affinity groups and retailers saw
a slight dip in their private motor market share from 2008 113
Affinities
make up an estimated 15% of total UK household insurance GWP 113
The top
affinity insurance advertisers increased their budget in 2009 115
A third
of the insurance products advertised by the top 10 affinity insurance
advertisers are niche lines 115
The top 10 affinity insurance advertisers
use direct mail campaigns to effectively leverage their customer databases
117
While most of the top 10 affinity insurance advertisers decreased
their advertising spend in 2009, their overall expenditure increased 119
Affinity partnerships comprise almost 10% of the general insurance market
121
The top five brandassurers hold a lower market share than in 2008
121
Affinity partnerships have the largest share in the combined policy
market 123
A number of influential affinity partnerships were formed in
the last year 124
Fortis procures significant partnerships to provide
Tesco and Toyota with home and motor insurance 124
Kwik-Fit has sold off
its insurance wing to Fortis 124
Carole Nash wins an insurance deal with
Harley Davidson 125
Thornside to provide Sainsbury' s pet insurance 125
Heath Lambert wins Debenhams deal 125
Aggregators and Price Comparison
Sites 126
Introduction 126
Over 60% of consumers use an aggregator
when purchasing motor insurance 126
A sizeable proportion of aggregator
visitors use them for research purposes only 126
Insurance aggregator
advertising has become a four-horse race 127
Only negligible amounts were
spent on aggregator advertising outside of the top four 127
More than
three-quarters of the top four aggregators' advertising budget was spent on
motor insurance cover 129
The leading four aggregators are highly
dependant on TV advertising 131
The aggregator market is innovative and
highly competitive 132
MoneySupermarket.com' s revenue declined in 2009
132
MSN and BeatThatQuote.com have launched a new comparison site 132
Future Decoded 133
Introduction 133
The direct channel in the private
motor insurance market is predicted to contract after 2011 133
The direct
channel has shown consistent growth since 2007 133
Brokers are predicted
to lose market share until 2011 and thereafter regain it 133
Affinity
partnerships are forecast to gradually increase their market share over the
next five years 133
As consumer confidence in the banking sector improves,
bancassurers will gain market share in private motor insurance distribution
134
Banks and building societies are predicted to remain the dominant
provider of UK household insurance 135
The direct channel is expected to
see an increase in market share during the forecast period 135
Bancassurers are predicted to retain the largest share of the UK household
insurance market 135
Brokers are expected to see a decline in market share
from around 2011 135
Affinity partnerships will gradually increase their
market share in UK household insurance 136
Appendix 138
Definitions
138
Premium income measures 138
Earned premiums 138
Gross premium
138
Net premium 138
Written premiums 138
Distribution definitions
138
Bancassurers 138
Banks/building societies 138
Brandassurers
138
Broker 138
Company staff 139
Direct channel 139
' Other'
company agents 139
Partnerships 139
Methodology 139
Datamonitor
General Insurance Consumer Survey 139
Primary and secondary research
142
Distribution estimates and forecast methodology 142
Advertising
and marketing spend data 142
Further reading 143
Ask the analyst
143
Datamonitor consulting 143
Disclaimer 143
List of Tables
Table 1: Private motor insurance GWP distribution, by channel, 2005-09e 12
Table 2: Household insurance GWP distribution by channel, 2005-09e 14
Table 3: With which of these insurance companies are you insured for your
motor insurance policy/s? Top 10 responses split by age 18
Table 4: With
which of these insurance companies are you insured for your home insurance
policy/s? Top 10 responses, split by age 20
Table 5: With which of these
insurance companies are you insured for your combined contents and buildings
insurance policy/s? Top 10 responses, split by age 21
Table 6: With which
of these insurance companies are you insured for your home contents insurance
policy/s? Top 10 responses, split by age 23
Table 7: With which of these
insurance companies are you insured for your home buildings insurance
policy/s? Top 10 responses, split by age 24
Table 8: Top 10 personal
general insurance advertisers (£), 2006-09 27
Table 9: Top 10
personal general insurance advertisers' spend (£), by media, 2006-09
29
Table 10: Which of the following types of insurance are you covered by?
34
Table 11: Which of the following types of insurance are you covered by?
Responses split by age 35
Table 12: Which of the following types of
insurance are you covered by? Responses split by household income 37
Table
13: Which of the following types of insurance are you covered by? Responses
split by socio-economic group 38
Table 14: How did you arrange the home
insurance policy you currently have? 41
Table 15: How did you arrange the
motor insurance policy you currently have? Responses split by age 42
Table
16: How did you arrange the home contents insurance policy you currently have?
Responses split by age 44
Table 17: How did you arrange the combined
contents and buildings insurance policy you currently have? Responses split by
age 45
Table 18: How did you arrange the motor insurance policy you
currently have? Responses split by household income 47
Table 19: How did
you arrange the combined contents and buildings insurance policy you currently
have? Responses split by household income 48
Table 20: How did you arrange
the home contents insurance policy you currently have? Responses split by
household income 50
Table 21: How did you arrange the motor insurance
policy you currently have? Responses split by socio-economic group 51
Table 22: How did you arrange the combined contents and buildings insurance
policy you currently have? Responses split by socio-economic group 53
Table 23: How did you arrange the home contents insurance policy you currently
have? Responses split by socio-economic group 54
Table 24: When you last
renewed your motor insurance, did you change company or stay with the same
one? When your motor insurance next comes up for renewal, how likely or
unlikely is it that you will shop for alternative quotations? Responses split
by age 56
Table 25: When you last renewed your home contents insurance,
did you change company or stay with the same one? When your home contents
insurance next comes up for renewal, how likely or unlikely is it that you
will shop for alternative quotations? Responses split by age 58
Table 26:
When you last renewed your combined contents and buildings contents insurance,
did you change company or stay with the same one? When your combined contents
and buildings contents insurance next comes up for renewal, how likely or
unlikely is it that you will shop for alternative quotations? Responses split
by age 60
Table 27: When you last renewed your motor insurance, did you
change company or stay with the same one? When your motor insurance next comes
up for renewal, how likely or unlikely is it that you will shop for
alternative quotations? Responses split by household income 62
Table 28:
When you last renewed your combined contents and buildings contents insurance,
did you change company or stay with the same one? When your combined contents
and buildings contents insurance next comes up for renewal, how likely or
unlikely is it that you will shop for alternative quotations? Responses split
by household income 64
Table 29: When you last renewed your home contents
insurance, did you change company or stay with the same one? When your home
contents insurance next comes up for renewal, how likely or unlikely is it
that you will shop for alternative quotations? Responses split by household
income 66
Table 30: Why did you take out your home insurance with your
current provider? Top five responses 68
Table 31: Why did you take out
your motor insurance with your current provider? Top five responses, split by
age 70
Table 32: Why did you take out your home insurance with your
current provider? Top five responses, split by age 71
Table 33: The direct
channel' s share of motor and household insurance GWP, 2005-09e 73
Table
34: Top 10 direct insurers' advertising spend (£), by product, 2006-09
76
Table 35: Top 10 direct insurers' advertising spend (£), by
medium, 2006-09 78
Table 36: Top 10 direct insurance advertisers (£),
2006-09 80
Table 37: Market share of the top five direct motor insurance
brands, March 2010 81
Table 38: Market share of the top five direct
household insurance brands, March 2010 83
Table 39: The broker channel' s
share of the motor and household insurance GWP, 2005-09e 86
Table 40: Top
10 brokers' advertising spend (£), by product, 2006-09 88
Table 41:
Top 10 brokers' advertising spend (£), by medium, 2006-09 90
Table
42: Top 10 brokers' advertising spend (£), 2006-09 92
Table 43:
Market share of the top five motor broker insurance brands, March 2010 94
Table 44: Market share of the top five household broker insurance brands,
March 2010 96
Table 45: Banks' and building societies' share of the motor
and household insurance GWP, 2005-09e 100
Table 46: Top 10 bancassurers'
advertising spend (£), by product, 2006-09 102
Table 47: Top 10
bancassurers' advertising spend (£), by medium, 2006-09 104
Table 48:
Top 10 bancassurance advertisers (£), 2006-09 106
Table 49: Market
share of the top five bank or building society motor insurance brands, March
2010 108
Table 50: Market share of the top five bank and building society
household insurance brands 110
Table 51: UK home lending volume and value,
2005-09 111
Table 52: The partnership channel' s share of the motor and
household insurance GWP, 2005-09e 114
Table 53: Top 10 affinities and
retailers' advertising spend (£), by product, 2006-09 117
Table 54:
Top 10 affinities and retailers' advertising spend (£), by medium,
2006-09 119
Table 55: Top 10 affinity groups and retailers' advertising
spend (£), 2006-09 121
Table 56: Market share of the top five
affinity partnership motor insurance brands 122
Table 57: Market share of
the top five affinity partnership household brands 124
Table 58: When your
car insurance last came up for renewal, did you visit any price comparison
sites to obtain quotations? 127
Table 59: Top four aggregators'
advertising spend (£), 2008-09 129
Table 60: Top four aggregators'
advertising spend (£), by product, 2008-09 130
Table 61: Top four
aggregators' advertising spend (£), by medium, 2007-09 132
Table 62:
UK private motor insurance GWP distribution by channel, 2009e14f 135
Table
63: UK household insurance GWP distribution, by channel, 2009e-14f 137
Table 64: Breakdown of motor insurance consumer survey respondents, by
household income and age 140
Table 65: Breakdown of household insurance
consumer survey respondents, by household income and age 141
Table 66:
Breakdown of motor insurance consumer survey respondents, by socio-economic
group 141
Table 67: Breakdown of household insurance consumer survey
respondents, by socio-economic group 142
List of Figures
Figure 1:
Direct Line was the largest insurance advertiser in 2009 by a distinct margin
3
Figure 2: The broker channel retained the household insurance market
share it held in 2008 5
Figure 3: The direct channel gained market share
at the expense of corporate partnerships 11
Figure 4: Bancassurers' share
of the home insurance market has declined 13
Figure 5: The RBS Group
maintains dominance over the UK motor insurance market 15
Figure 6: The
Lloyds Banking Group and the RBS Group both have a strong presence in the home
insurance sector 16
Figure 7: Direct Line is the market leader for private
motor insurance 17
Figure 8: Halifax held the largest share in the 18-24
age group 19
Figure 9: For combined insurance, age-focused Saga and RIAS
are dominant for older consumers 21
Figure 10: Targeting older consumers
has proved effective for RIAS and Saga 22
Figure 11: Banks and building
societies have a strong presence in the buildings only insurance sector 24
Figure 12: Direct Line was the largest insurance advertiser in 2009 by a
distinct margin 26
Figure 13: Half the top 10 general insurance
advertisers' spend was dedicated to television marketing 29
Figure 14:
Consumers aged over 34 possess the highest penetration rates for private motor
insurance cover 31
Figure 15: Consumers with higher incomes have higher
penetration rates for motor insurance 32
Figure 16: Motor insurance
consumers have similar rates of penetration across all socio-economic groups
33
Figure 17: Combined buildings and contents policies have the highest
penetration rates 34
Figure 18: Over 55s are the largest target market for
combined home insurance policies 35
Figure 19: Providers should target
their combined contents and buildings insurance offer at consumers in the mid
and higher income bands 36
Figure 20: Bands A and B show the best
penetration rates overall, while group E displays an off-trend high rate for
combined policies 38
Figure 21: The vast majority of consumers arrange
their car insurance policy over the internet or telephone 39
Figure 22:
The majority of home insurance is distributed over the phone or the internet
40
Figure 23: Internet distribution decreases with older consumers 42
Figure 24: Older consumers are more likely to use the phone to arrange their
home contents insurance 43
Figure 25: Older consumers are more likely to
buy their combined policies over the phone 45
Figure 26: Higher income
consumers are generally more likely to arrange motor insurance over the
internet 46
Figure 27: Consumers with income over £100,000 prefer to
arrange their combined policy over the telephone 48
Figure 28: The phone
is the most used platform for arranging home contents insurance 49
Figure
29: The internet was the platform of choice across the board for arranging
motor insurance 51
Figure 30: Groups A and E are more likely to use the
telephone to arrange their combined household policy 52
Figure 31: Higher
socio-economic groups are more likely to use the internet to arrange home
contents insurance 54
Figure 32: Older consumers are more likely to retain
their current insurance providers 55
Figure 33: Consumer loyalty in the
contents only insurance sector peaks with middle-aged consumers 57
Figure
34: Middle-aged consumers are most likely to stay with their combined home
insurance provider 59
Figure 35: Consumers are generally most likely to
stay with their current motor insurance provider 61
Figure 36: Consumers
with a household income of £100,000-139,999 are the most likely to switch
their combined insurance policy providers 63
Figure 37: The home contents
insurance market showed a large degree of loyalty overall 65
Figure 38:
Price was the dominant factor for consumers in deciding the choice of motor
insurance providers 67
Figure 39: Price is a particularly important factor
for consumers purchasing a combined home insurance policy 68
Figure 40:
Older consumers were less likely to state price as a reason for selecting an
insurance provider 69
Figure 41: The reputation of a home insurance
provider is particularly important to the over 65s 71
Figure 42: The
direct channel maintained a constant presence in the household market and an
increasingly larger hold on the private motor market 73
Figure 43: Motor
insurance advertising makes up the biggest spend for direct insurers 75
Figure 44: Almost half of the direct insurance advertisers' combined budget
was spent on TV campaigns 77
Figure 45: Direct Line retains the largest
advertising spend in 2009, while Aviva dramatically increased its marketing
expenditure 79
Figure 46: The top five direct insurers are also in the top
seven overall distributors of private motor cover 81
Figure 47: Direct
Line is the market leader across all sectors of the household insurance market
82
Figure 48: The broker channel retained the household insurance market
share it held in 2008 86
Figure 49: Home and motor insurance remain the
key focus areas of the top insurance broker advertisers 87
Figure 50:
Direct mail campaigns comprise the bulk of the top insurance broker
advertisers' combined budget 89
Figure 51: Bluefin made a strong entrance
into the broker advertising market, while the AA cut its spend 91
Figure
52: The AA has a clear lead over the other top five brokers, comprising half
the sales of the top five brokers in March 2010 93
Figure 53: The AA is
the overall market leader for UK home insurance distribution 95
Figure 54:
2009 is expected to see a dip in the bancassurers' market share of UK home
insurance 99
Figure 55: Home insurance remains a priority for
bancassurance advertisers 101
Figure 56: Direct mail cross-selling remains
a fundamental marketing strategy for bancassurers 103
Figure 57: NatWest
went against the trend in 2009 and tripled its advertising spend 105
Figure 58: Lloyds TSB has maintained its market dominance among bancassurers,
albeit at a reduced margin 107
Figure 59: Banks display their lowest
penetration rate in the combined policies market 109
Figure 60: 2009 saw a
slight increase in the number of loans, but not their total value 111
Figure 61: Affinity partnerships have witnessed a declining market share in UK
home and motor insurance 114
Figure 62: Advertising by affinities was
mostly focused on other products such as breakdown and appliance warranties
116
Figure 63: Nearly three-quarters of the top 10 affinity partnership
advertisers' spending was on direct mail marketing 118
Figure 64: Saga
spent a third of the top 10 affinity partnership advertisers' marketing budget
120
Figure 65: Tesco shows a formidable lead above its brandassurer
competitors in the motor insurance market 122
Figure 66: Tesco and Saga
dominate the home insurance brandassurer market 123
Figure 67: Fewer
people used an aggregator to purchase and research household insurance than
motor 127
Figure 68: Confused and GoCompare each spent more than a third
of the top four aggregators' total advertising expenditure 128
Figure 69:
Home and motor insurance were the only products that experienced an increase
in advertising spend in 2009 130
Figure 70: TV advertising comprises the
bulk of aggregators' advertising campaigns 131
Figure 71: The direct
channel is forecast to remain the dominant distributor of private motor
insurance 134
Figure 72: Bancassurers and direct insurers are expected to
witness market growth 136
