New research: Price and trust main drivers in volatile UK insurance market

Our new consumer research, I worked with Sue Burden of Commssavvyresearch, conducted into Switching Motivations shows 51% of UK insurance customers (home or motor) are at real risk of switching at their next renewal. Nearly a quarter say they are already in the process of switching and two in five are thinking of switching at their next renewal. The continuing high level of volatility in this market is both a threat and an opportunity for UK insurance companies.

Apart from lower cost premiums which are important to over 80%, the two factors that have greatest influence in brand choice are a brand’s perceived trustworthiness and UK-based call-centres. These factors are more influential than the time it takes to get a quote, or multi-channel coordination – an area that has become increasingly the focus of insurers recently. A UK call centre is, for many consumers, concrete evidence of the brand’s trustworthiness – its commitment to provide acceptable service at their point of need. This highlights the opportunity for insurers to emphasise their care for the customer in low cost ways rather than relying on expensive IT projects.

The Switching Motivations research also shows that 10% are switching because they feel neglected, showing the value in taking a more proactive approach to communication and creating positive service experiences.
Other brand choice drivers shown by the research include specifics around the quoting mechanisms, suggesting that this procedure has a lot of room for improvement.

Research details: Switching Motivations sample base: 520 UK adults responsible for home or motor insurance; date of fieldwork: Dec 2014; research conducted online by Respondi, a provider of UK and international access panels.

It would be interesting to get your views on this

If you’d like to know more, please email me or Sue

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