Uk Household Insurance 2007 (Customer Focus)

Content

• Catalyst
• Summary
• Analysis
  • Face-to-face arrangements of household insurance policies continue to decline in favor of phone and internet
  • Face-to-face distribution of household insurance has been declining for several years
  • The number of consumers arranging household insurance online or over the telephone grew in 2007
  • Price remains important to consumers, while those buying online are most likely to switch
  • The majority of consumers are attracted by low premiums when choosing their insurance provider
  • Consumers are more likely to switch if they purchase their household insurance online
  • Online consumers show greater sensitivity to price than consumers using other platforms
  • Household insurance providers advertise both buildings and content insurance combined and contents insurance as a standalone
  • Insurance providers spent 91.8 million advertising building and contents insurance combined in 2006
  • Insurance providers spent just 13.9 million advertising contents-only insurance in 2006
  • The majority of advertising spending on household insurance was concentrated on direct mail
  • The top 10 building and contents advertisers split their efforts between cross-selling through direct mail and gaining new customers from television advertising
  • The top 10 contained mainly direct insurers and bancassurers eager to expand their market share
  • Direct mail was the primary means of marketing building and contents insurance, reflecting the large number of banks and brokers in the top 10
  • Television advertising was also important to several of the largest building and contents advertisers
  • Press advertising was undertaken by all in the top 10 in 2006, although this medium played a minor role in advertising strategies
  • Advertisers ranked 11-20 focused their more limited budgets on direct mail advertising
  • Direct mail dominated the advertising strategies of advertisers ranked 11-20
  • Only a few advertisers included television or press campaigns in their building and contents marketing
  • The top 10 contents-only insurance advertisers, which consists mainly of banks and direct insurers, reduced their spend in 2006
  • Direct mail was the primary means of advertising contents-only insurance for all of the top 10, except Norwich Union
  • Direct mail accounted for the bulk of the spending by the top 10 in 2006
  • Norwich Union and Halifax were the only contents-only advertisers in the top 10 to pursue a television campaign in 2006
  • Direct mail was the preferred medium for advertising by advertisers in the 11-20 bracket
  • Limited budgets resulted in targeted direct mail campaigns
  • Press advertising was the only other expense for advertisers ranked 11-20
  • Direct Line and Churchill are the most widely recognized household insurance providers in 2007
• Appendix
  • Definitions
  • Channel
  • Direct insurer/writer/channel
  • Platform
  • Supplementary data
  • Methodology
  • Advertising statistics
  • Ipsos MORI methodology and contacts
  • Sample design
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
• List of Tables
  • Table 1: Distribution of household insurance, by platform, 2003-07
  • Table 2: Reasons for choosing household insurance provider, 2007
  • Table 3: Propensity to switch household provider and likelihood of getting other quotes, by distribution platform, 2007
  • Table 4: Motivations for taking out a new household insurance policy, by distribution platform, 2007
  • Table 5: Total UK household advertising spend by media, 2005-06
  • Table 6: Top 10 building and contents insurance advertisers' spend by media, 2006
  • Table 7: The spending of building and contents advertisers ranked 11-20 by media, 2006
  • Table 8: Top 10 UK contents-only insurance advertisers, 2004-06
  • Table 9: Top 10 contents-only insurance advertisers' spend by media, 2006
  • Table 10: UK top 11-20 contents-only insurance advertisers' spend by media, 2006
  • Table 11: Spontaneous consumer awareness of UK household insurers against advertising expenditure, 2007
  • Table 12: Top 10 UK insurance providers by spontaneous recognition, 2007
  • Table 13: Top 10 UK insurance providers by spontaneous recognition, 2006
• List of Figures Figure 1: Phone remains the largest distribution platform for household insurance in 2007
  • Figure 2: Price is the strongest motivation when choosing a household provider
  • Figure 3: Consumers are most likely to switch from an insurance provider when they purchase their household insurance online in 2007
  • Figure 4: There is a greater price awareness among consumers who purchase their household insurance online in 2007
  • Figure 5: Direct mail constituted the bulk of the advertising outlay for UK household insurance products in 2006
  • Figure 6: Direct mail constituted the bulk of advertising outlay for building and contents insurance among the top 10 in 2006
  • Figure 7: Direct mail constitutes the bulk of the marketing outlay for building and contents insurance
  • Figure 8: Halifax far outspent any of its rivals in contents-only insurance via its direct mail campaigns in 2006
  • Figure 9: Most advertisers ranked 11-20 pursued a single medium approach to contents-only insurance in 2006
  • Figure 10: Direct Line was the most recognized home insurance brand in 2007