Car Insurance: Inc Impact Of COVID-19 - Ireland - May 2020

Car Insurance: Inc Impact Of COVID-19 - Ireland - May 2020

  • Mintel
  • May 2020
  • Insurance
  • 0 pages

Report Description

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Despite the impact of the COVID-19 virus, the legal necessity of car insurance is set to see the total value of gross written premiums for private motor insurance remain stable, with the value expected to reach €2.2 billion – however a dramatic reduction in new car purchasing (and in turn policies for these vehicles) and consumers likely seeking to maximise cost saving, it could dampen growth in the short-to-medium term. Consumers are likely to work harder to get the best quote possible when renewing, and more likely to use price comparison sites as a result.

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Table of contents

OVERVIEW
What you need to know
Key Issues Covered in this Report
Issues covered in this Report
Definitions
EXECUTIVE SUMMARY
The market
Figure 1: Estimated gross written premiums, private motor insurance, by type of policy, IoI, 2020
Market Factors
Premiums remain high for consumers
RoI road collisions increase, decrease in NI
Consumers rate their finances as ‘OK’
Car ownership remains high in 2020
Impact of COVID-19 on Insurance
COVID-19 seeing calls for insurance rebates
Figure 2: Indexed estimated gross written premiums, private motor insurance, IoI, RoI and NI, 2015-25
Figure 3: Expected impact of COVID-19 on car insurance, short, medium and long-term, 29th May
Companies and innovations
The Consumer
Comprehensive cover favoured by most drivers
Figure 4: Types of car insurance owned, NI and RoI, January 2020
Most drivers chose to stay with their current provider, but after shopping around
Figure 5: Consumer behaviours during last renewal cycle, NI and RoI, January 2020
Price strongest motivator when choosing provider
Figure 6: Important factors when selecting car insurance provider, NI and RoI, January 2020
Protected no-claims bonus a key policy feature
Figure 7: Policy factors that consumers prioritise, NI and RoI, January 2020
Minimising cost key behaviour for Irish motorists
Figure 8: Attitudes towards car insurance, NI and RoI, January 2020
Strong willingness to use dash cameras
Figure 9: Attitudes towards car insurance, NI and RoI, January 2020
Irish drivers happy with their insurance provisions
Figure 10: Attitudes towards car insurance, NI and RoI, January 2020
THE MARKET – WHAT YOU NEED TO KNOW
COVID-19 seeing calls for insurance rebates
Value of gross written premiums expected to increase again in 2020
Motorists continue to face increased premiums
Increase in road collisions, but decline in deaths
Consumers rate their finances as ‘OK’
Car ownership remains high in 2020
THE IMPACT OF COVID-19 ON CAR INSURANCE
Short, medium and long-term impact on the industry
Figure 11: Expected impact of COVID-19 on car insurance, short, medium and long-term, 29th May
Opportunities and Threats
Calls for insurers to refund drivers in light of fewer consumers using vehicles
Aversion to public transport could see more drivers as COVID-19 restrictions ease
Figure 12: Selected ways in which the COVID-19 outbreak has changed behaviours for consumers and their families, IoI, March-April 2020
Sharp decline in car sales could limit value of GWP
Figure 13: Total new car registrations (adjusted for COVID-19), IoI, NI and RoI, 2015-25
Figure 14: Impact of the COVID-19 outbreak on consumer finances, NI and RoI, May 2020
Impact on the car insurance market
Figure 15: Estimated gross written premiums, private motor insurance, IoI, RoI and NI, 2015-25
How the crisis will affect car insurance’s key consumer segments
Consumers are still wary about venturing out
Figure 16: How worried consumers are about the risk of being exposed to COVID-19, IoI, March-May 2020
Figure 17: Consumers who are extremely worried about the risk of being exposed to COVID-19, IoI, May 2020
Working at home could become the norm for many
How a COVID-19 recession will reshape the car insurance sector
Sombre financial outlook may see drivers work harder to minimize premiums
Figure 18: How consumers feel COVID-19 will make an impact on selected factors, NI and RoI, May 2020
Marketing Mix
COVID-19: Market context
MARKET SIZE AND FORECAST
Value of gross written premiums expected to increase again in 2020
Figure 19: Estimated gross written premiums, private motor insurance, IoI, RoI and NI, 2015-25
Majority of value comes from comprehensive cover
Figure 20: Estimated gross written premiums, private motor insurance, by type of policy, IoI, 2020
GWP value expected to see growth to 2025
Figure 21: Indexed estimated gross written premiums, private motor insurance, RoI and NI, 2015-25
Figure 22: Total new car registrations, NI and RoI, 2015-19
MARKET DRIVERS
Average premium costs increase
Figure 23: Average cost of insurance premiums for different coverage types, RoI, 2015-18
NI premiums remain high
Figure 24: Average price of fully comprehensive car insurance, by county, NI, 2019
Figure 25: Average price of fully comprehensive car insurance, by age, NI, 2019
CPI for car insurance shows fall in cost
Figure 26: Consumer price index, motor insurance, UK (inc NI) and RoI, January 2015-January 2020
Road deaths decline in RoI during 2015-18, but collisions increase
Figure 27: Number of collisions, by type, RoI, 2015-19
Figure 28: Number of claims per 1,000 policies, 2015-18
Figure 29: Number of claims per 1,000 policies, by type of claim, 2015-18
NI sees decline in total collisions during 2018-19
Figure 30: Recorded injury road traffic collisions, by type of collision, NI, 2014/15-2018/19
Consumers still likely to rate their finances as ‘OK’
Figure 31: Financial health of Irish consumers, NI and RoI, 2016-20
Car ownership remains high in 2020
Figure 32: Ownership of a car, NI and RoI, 2019 and 2020
Figure 33: Ownership of a car, by age, NI and RoI, January 2020
Figure 34: Actual and projected population (%),NI and RoI, by age, 2017 and 2041/6
Car theft and relative offences
Figure 35: Number of theft/taking of vehicle and related offences, RoI, Q1 2015-Q3 2019
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Offering free insurance to medics during the COVID-19 crisis
Designating a driver quickly
Korean app can estimate damage costs
WHO’S INNOVATING?
AXA Ireland and Renault offering support during COVID-19 crisis
GOelegido offers cover for designated drivers
Using AI for damage estimates
COMPANIES AND BRANDS
Abbey Insurance Brokers
Key facts
Product portfolio
Recent developments
Admiral
Key facts
Product portfolio
Recent developments
Allianz
Key facts
Product portfolio
Recent developments
Allied Irish Bank
Key facts
Product portfolio
Aviva
Key facts
Product portfolio
Recent developments
AXA
Key facts
Product portfolio
Recent developments
Bank of Ireland
Key facts
Product portfolio
Recent developments
Direct Line Group
Key facts
Product portfolio
Recent developments
FBD
Key facts
Product portfolio
Liberty Insurance
Key facts
Product portfolio
Recent developments
An Post Insurance
Key facts
Product portfolio
Recent developments
Ulster Bank
Key facts
Product portfolio
123.ie (RSA Insurance)
Key facts
Product portfolio
THE CONSUMER – WHAT YOU NEED TO KNOW
Comprehensive cover favoured by most drivers
Majority of motorists stayed, but only after shopping around
Price strongest motivator when choosing provider
Protected no-claims bonus a key policy feature
Minimising cost key behaviour for Irish motorists
Strong willingness to use dash cameras
Irish drivers happy with their insurance provisions
TYPE OF CAR INSURANCE OWNED
Most Irish motorists have fully comprehensive car insurance
Figure 36: Types of car insurance owned, NI and RoI, January 2020
Mature consumers those most likely to have full coverage
Figure 37: Consumers with fully comprehensive car insurance, by age, NI and RoI, January 2020
Figure 38: Consumers with fully comprehensive car insurance, by social class, NI and RoI, January 2020
RENEWAL BEHAVIOUR
Majority of motorists stayed, but only after shopping around
Figure 39: Consumer behaviours during last renewal cycle, NI and RoI, January 2020
RoI men more likely to stay, while women more likely to switch
Figure 40: Selected consumer behaviours during last renewal cycle, by gender, NI and RoI, January 2020
Consumers of low affluence in RoI more likely to not shop around
Figure 41: Selected consumer behaviours during last renewal cycle, by social class, NI and RoI, January 2020
IMPORTANT FACTORS WHEN CHOOSING PROVIDERS
Price the clear motivator when choosing insurance provider
Figure 42: Important factors when selecting car insurance provider, NI and RoI, January 2020
Price more likely to influence women drivers
Figure 43: Consumers who consider price an important factor, by gender, NI and RoI, January 2020
Quality of cover second most important factor
Figure 44: Consumers who consider quality of cover an important factor, by age, NI and RoI, January 2020
Figure 45: Consumers who consider customer service an important factor, by age, NI and RoI, January 2020
RoI women more inclined to consider ethical brands
Figure 46: Consumers who consider an ethical brand an important factor, by gender, NI and RoI, January 2020
POLICY CONSIDERATIONS
Protected no-claims bonus a key policy feature
Figure 47: Policy factors that consumers prioritise, NI and RoI, January 2020
No-claims protection most important to mature consumers
Figure 48: Consumers who prioritise protected no-claims bonuses on car insurance policies, by age, NI and RoI, January 2020
RoI consumers 7 percentage points more likely to prioritise breakdown cover
Figure 49: Consumers who prioritise protected breakdown cover on car insurance policies, by area type, NI and RoI, January 2020
Courtesy car more likely to appeal to NI drivers
PRICE COMPARISONS
Strong consumer focus on getting lowest possible premiums
Figure 50: Attitudes towards car insurance, NI and RoI, January 2020
Figure 51: Agreement with the statement ‘I believe you have to shop around at renewal to get the best deal’, by age, NI and RoI, January 2020
NI consumers more likely to have used price comparison websites
Figure 52: Agreement with the statement ‘I have used a price comparison site to look for cheaper insurance in the last 12 months’, by age, NI and RoI, January 2020
TECHNOLOGY BEHAVIOURS
Three quarters of drivers willing to use a dash cam
Figure 53: Attitudes towards car insurance, January 2020
RoI consumers more likely to seek car management app
Figure 54: Agreement with the statement ‘I would like to be able to manage various aspects of owning a car (eg car insurance, MOT) through one app’, by age, NI and RoI, January 2020
Figure 55: Device ownership, by age, NI and RoI, January 2020
CAR INSURANCE BEHAVIOURS
Strong satisfaction among drivers with their current policies
Figure 56: Attitudes towards car insurance, NI and RoI, January 2020
Figure 57: Agreement with the statement ‘I've made a claim on my car insurance in the last 3 years’, by age, NI and RoI, January 2020
Women more likely to be satisfied with policy
Figure 58: Agreement with the statement ‘I am happy with my current policy’, by gender, NI and RoI, January 2020
Drivers think greener cars deserve leaner premiums
Figure 59: Desired fuel type for future car purchase, NI and RoI, December 2018
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Data sources
Abbreviations

 

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