Brits Love to Compare, Says New Market Research Study

New research from global technology and management consultancy Capco has revealed nearly two-thirds (62%) of UK consumers choose insurance products via price comparison and aggregator review websites.

This underlines the move to a new era of digitally savvy customers, where traditional brand loyalty is fading and the majority of consumers want to assess offerings from multiple insurers. While 84% of UK respondents have at least one insurance policy, only 27% have multiple insurance policies with the same provider, significantly below the survey’s global average of 40%.

Capco surveyed 2,000 UK consumers to gauge their impressions of insurance products and providers to capture public attitudes toward consumer insurance, the key products and services used, and emerging trends. The results form part of a larger survey of 14,000 consumers across 13 markets globally.

Other notable findings in the UK survey include:

  • Living up to Brits’ reputation as animal lovers, 24% of UK respondents purchased pet insurance in the past year – the highest level recorded across all 13 countries canvassed in the survey (global average: 10%).
  • UK responses indicate a low take-up of health insurance. Just 17% of UK-based holders of UK insurance policies had purchased private health insurance in the past year – compared to a 36% global average – reflecting the trust placed in the NHS as a provider of free healthcare at the point of delivery.
  • There is a clear willingness to embrace digitalisation – and the enhanced personalisation it can offer – with nearly six in ten (58%) UK respondents saying they would use an app that offers a more unified and complete picture of their insurance and other financial products.
  • Although value for money was cited by 41% of respondents as the number one motivating factor when it came to choosing insurance, customers’ expectations and preferences vary. Just over a third of respondents (34%) would not share their data to gain a cheaper premium, with respondents over the age of 65 particularly reluctant in this respect.
  • Trust in the sector has also been impacted to a degree by COVID-19. 22% of consumers surveyed indicated that they trust insurers less post-pandemic, while 43% expressed a lack of confidence about the level of protection provided by their insurance products post-COVID.

Matt Hutchins, Global Insurance Lead at Capco, said: “Our survey shows there is a strong appetite in the UK insurance market for digitally focused tools that educate the customer, provide personalised support and financial information. If insurers invest in these tools they can enhance their customer relationship, retention levels and drive repeat business.

“However, a march toward greater personalisation cannot come at the expense of damaging customers’ trust in their providers. Insurers will need to navigate concerns around use of personal data, the decreasing levels of trust since the pandemic began, and the disparate needs of their clients.”

Capco’s global survey was conducted online in April and May 2021 and collected responses from a total of 2,002 UK individuals and 13,798 in total. The markets surveyed were the UK, US, Canada, Brazil, Germany, Austria, Switzerland, Belgium, Hong Kong, China, Singapore, Thailand and Malaysia. Country representative quotas were followed. Survey respondents were drawn from six age demographics: 18-24, 25-34, 35-44, 45-54, 55-64, and 65+. Globally, 49% of respondents identified as male, 50% identified as female, and 1% identified as other.

The full Capco global insurance survey and report, which includes individual commentaries on the UK and 12 other markets, is available here.

About alastair walker 10116 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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