In the United Kingdom, consumers who buy home insurance online view price as a key purchase consideration and are therefore inclined to consult a price comparison website. They believe that the online buying process can be improved further by simplifying questions or removing unnecessary questions. They are willing to share personal data with home insurers in exchange for deeper personalization, but they are afraid that home insurers may use their personal data to deny their claim or increase their premium instead.
Importance of Price
- Before purchasing home insurance, consumers in the United Kingdom typically visit a price comparison website first.
- According to market advisory and intelligence firm, Mordor Intelligence, visiting such a website is the activity consumers most commonly perform before making the actual home insurance purchase online.
- This behavior underscores how important price is for consumers purchasing home insurance online.
Complexity of Application Process
- In the country, 38% of adults with home insurance find home insurance applications questions as difficult as General Certificate of Secondary Education (GCSE) questions, and 32% of adults with home insurance have given up acquiring an insurance quote because they do not have the information needed or they feel the application process is taking too much of their time.
- Seventy-six percent of adults with home insurance believe that insurers should make the buying process faster, less expensive, and less complicated.
- Considering that the online channel is the most commonly used channel among consumers seeking home insurance, with over 40% of written premiums taking place online, the aforementioned findings likely hold true as well with adults buying home insurance online.
- In response to these survey results, Aviva recently streamlined the 'quote and buy' journey of its home insurance consumers on all its digital channels, namely, the MyAviva online portal, the MyAviva mobile app, and the Aviva website. The company was able to remove some complex questions because it was able to find another way to identify the risk associated with a property.
Satisfaction with Retailers Offering White-Label Insurance
- Consumers buying their home insurance online from retailers appear to be both loyal to these retailers and satisfied with these retailers' insurance services. Retailers are among the insurance providers in the country with the highest Net Promoter Scores.
- Retailers, such as Tesco, offer white-label insurance products that are underwritten by big insurers. As its Net Promoter Score indicates, supermarket giant Tesco, which sells home insurance online, has quite a loyal white-label insurance customer base.
Attitudes Towards Data Privacy
- In the country, 74% of consumers are willing to share their personal data with home or motor insurers in exchange for more relevant products or services and deeper personalization online.
- Sixty-three percent of consumers are okay with motor or home insurers having direct access to personal data they have shared online with third parties as long as that data will be used to refine product or service recommendations.
- However, 51% of non-life insurance consumers are wary that non-life insurers will use their personal data to deny their claim or raise their premiums instead.
Willingness to Buy from Alternative Providers
- In the country, around 40% of consumers in the country would consider buying insurance from Amazon, around 40% would consider buying insurance from Google, and around 20% would consider buying insurance from Facebook.
- The insurance markets that are expected to benefit the most from this shift in consumer behavior are the home insurance, motor insurance, and travel insurance markets.
- In fact, 20% of consumers in the country are already open to buying home insurance from Google or Amazon. With their expertise in smart home devices, Google and Amazon are well-positioned to enter the home insurance market.
In gathering insights about consumers buying home insurance online, we prioritized surveys, industry reports, and materials from reputable consulting firms. We considered as well what home insurance providers have to say about their consumers who buy insurance online. Though information on the subject is limited, we were able to compile five insights about the behavior of consumers who buy home insurance online.