Home Insurance Customers Remain Loyal As Rates Remain Constant


  • Consumer Intelligence has updated its home insurance price and shop around indexes. 
  • The home insurance price index1, monitoring the five most competitive home policies across price comparison websites and direct insurers, shows that premiums are roughly flat year on year. As a result, the consumer’s levels of satisfaction and loyalty are high.

Rates fell in the first 9 months of 2015 but the Chancellors 3.5% IPT increase meant that rates are just 0.3% lower than this time last year.

home_insurance_index.png

 

Under 50’s have fared slightly better in this market with prices about 1.1% cheaper, whereas over 50’s have seen about a 0.4% increase in their premiums.

home_index_age_50.png

 

Meanwhile we have also been tracking the level at which consumers shop around over the same time period.

In Feb-Apr 2014 about 75% of home insurance customers claimed to shop around. This had dropped to 72.8% by Jan-Mar 2016.

home_index_shop_around.png

There was also a slight decline in the number of consumers who switched across the same time period.

However, the big change over the last two years does not appear to be price or even switching, but the way in which consumers buy. 

Since Jan 2014 the amount of people purchasing home insurance by clicking through a price comparison site has increased from 41.0% to 47.6%, and those buying direct through company websites from 19.7% to 23.6%.  This has come at the direct expense of the telephone channel which has collapsed from 25.9% of new policies sold to just 16.0%

 

Jan- Mar 14

Jan-Mar 16

Clicked through Aggregator

41.0%

47.6%

Telephone

25.9%

16.0%

Web direct

19.7%

23.6%

Clicked through Cashback

7.3%

7.7%

Face to face

3.2%

2.2%

From a broker

2.2%

2.1%

Other

0.8%

0.6%

 


We anticipate even further change in the home insurance market over the next 12 months.

Contact us to learn how our Home Insurance Price Tracker and Home Insurance Behaviour Tracker are there to keep you one step ahead. 

learn more about our trackers


Methodology

1The cheapest premiums were calculated by comparing the prices offered for 2,100 people by all the major Price Comparison Sites and key direct insurers. The top 5 prices for each person were compared to the previous month’s top 5, then these variations averaged across the sample to produce the index.

 





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *