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Car Insurance - Ireland - May 2017

Published By :

Mintel

Published Date : Jun 2017

Category :

Insurance

No. of Pages : N/A

Having experienced almost explosive growth over the past couple of years as a result of very significant price increases, the private car insurance market is in line for more moderate year-on-year growth over the coming years. For the most part, growth in the sector will stem from increased activity in the broader economy.

Table of Content

OVERVIEW
What you need to know
Issues covered in this Report
Definitions

EXECUTIVE SUMMARY
The market
Private motor insurance market worth almost €2 billion in 2017
Figure 1: Gross written premiums, private motor insurance, IoI, NI and RoI, 2012-21
Forecast
Figure 2: Index of gross written premiums, private motor insurance, IoI, NI and RoI, 2012-21
Market factors
Car ownership at around 75% across Ireland
NI premiums increasing, threatening affordability
RoI premiums fall slightly after consecutive years of heavy rises
Companies, brands and innovations
The consumer
Most motorists have fully comprehensive car insurance
Figure 3: Type of car insurance currently owned, RoI and NI, February 2017
AXA leads NI market, while AXA and Aviva lead RoI market
Figure 4: Current car insurance provider, NI, February 2017
Figure 5: Current car insurance provider, RoI, February 2017
Roughly half of all car insurance policies arranged online
Figure 6: Method used to purchase car insurance, RoI and NI, February 2017
Majority of consumers shop around at renewal time
Figure 7: Car insurance renewal behaviour, NI and RoI, February 2017
Some add-ons popular, but most have niche appeal
What it means

THE MARKET – WHAT YOU NEED TO KNOW
Car ownership at around 75% across Ireland
NI premiums increasing, threatening affordability
RoI premiums fall slightly after consecutive years of heavy rises

MARKET SIZE AND FORECAST
Gross written premiums almost €1.9 billion in 2017
Figure 8: Gross written premiums, private motor insurance, IoI, NI and RoI, 2012-21
Motor premiums account for around of all premiums in RoI
Figure 9: Gross written premiums, non-life insurance, €m, RoI, 2015
Next five years to bring moderate, steady annual growth
Figure 10: Index of gross written premiums, private motor insurance, IoI, NI and RoI, 2012-21
Irish consumers spending around $4,000 per year on insurance
Figure 11: Insurance premiums per capita, selected European countries, US$, 2015

MARKET DRIVERS
More optimism among RoI than NI consumers regarding finances
Figure 12: Whether consumers expect own personal financial situation to improve or not over next 12 months, NI and RoI, April 2017
Three quarters of consumers personally own a car
Figure 13: Personal ownership of a car, RoI and NI, January 2017
Almost 3 million private cars on the roads across Ireland
Figure 14: Number of licensed cars, RoI and NI, 2011-15
Average UK (including NI) premiums up sharply over last 12 months
Figure 15: Average car insurance premiums, comprehensive and TPFT, UK (incl. NI), Q1 2016 and Q1 2017
Premiums rising fastest for NI motorists – up 6% in one quarter
Figure 16: Average motor insurance premiums quarterly increase, by region, UK (including NI), Q4 2016-Q1 2017
NI the second costliest region in the UK for car insurance
Figure 17: Average motor insurance premiums, by TV region, UK (including NI), Q1 2017
Motorists aged 17-22 paying almost four times more than motorists aged 60-69
Figure 18: Average motor insurance premiums, by age, UK (including NI), Q1 2017
RoI premiums dip slightly after three years of steep rises
Figure 19: Motor insurance premiums, consumer price index, RoI, April 2008-April 2017
Figure 20: Motor insurance premiums, index, RoI, April 2008-April 2017
Premiums rising to cover growing underwriting losses
Figure 21: Motor insurance premiums, index, RoI, 2008-17
Figure 22: Net underwriting result, non-life insurance, €m, RoI, 2015

COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Cost of Insurance Working Group
Tesco Bank no longer offering car insurance to new customers
Ireland Central Bank insurance division grows by 25% following Brexit

WHO’S INNOVATING?
Connected insurance
Autonomous vehicles insurance
Peer-to-peer insurance
Insurance industry disruptors

COMPANIES AND BRANDS
Admiral (NI Only)
Key facts
Motor insurance products
Recent developments
Allianz Ireland
Key facts
Motor insurance products
Recent developments
AXA
Key facts
Motor insurance products
Recent developments
An Post (RoI Post Office)
Key facts
Motor Insurance Products
Recent developments
Direct Line Group (NI Only)
Key facts
Motor insurance products
Recent developments
FBD (RoI Only)
Key facts
Motor insurance products
Recent developments
Liberty Insurance (Hughes Insurance)
Key facts
Motor insurance products
Recent developments
Abbey Insurance (NI Only)
Key facts
Motor insurance products
Recent developments
Zurich
Key facts
Motor insurance products
Recent developments
123.ie (RSA Insurance Ireland)
Key facts
Motor insurance products
Allied Irish Bank
Key facts
Motor insurance products
Recent developments
Bank of Ireland
Key facts
Motor insurance products
Recent developments
Ulster Bank
Key facts
Motor insurance
Recent developments

THE CONSUMER – WHAT YOU NEED TO KNOW
Most motorists have fully comprehensive car insurance
AXA leads NI market, while AXA and Aviva lead RoI market
Roughly half of all car insurance policies arranged online
Majority of consumers shop around at renewal time
Some add-ons popular, but most have niche appeal

OWNERSHIP OF CAR INSURANCE
Majority of Irish motorists have fully comprehensive car insurance
Figure 23: Type of car insurance currently owned, RoI and NI, February 2017
Fully comprehensive insurance ownership highest among older consumers
Figure 24: Consumers who currently own fully comprehensive car insurance, by gender and age, RoI and NI, February 2017

CAR INSURANCE PROVIDERS
AXA the clear leader in NI car insurance market
Figure 25: Current car insurance provider, NI, February 2017
AXA particularly strong among young male C2DEF consumers
Figure 26: Consumers whose current insurance provider is AXA, by gender, age and social class, NI, February 2017
Two main providers competing for pole position in RoI market
Figure 27: Current car insurance provider, RoI, February 2017
AXA commands more 'democratic' appeal among RoI consumers
Figure 28: Consumers whose current insurance provider is AXA, by gender, age and social class, RoI, February 2017
Aviva the clear leader among consumers aged 55+
Figure 29: Consumers whose current insurance provider is Aviva, by gender, age and social class, RoI, February 2017
Allianz's appeal strongest for men, ABC1s and 35-54s
Figure 30: Consumers whose current insurance provider is Allianz, by gender, age and social class, RoI, February 2017
Traditional insurers dominate both markets

CHANNEL PREFERENCES
Around half of all policies purchased online
Figure 31: Method used to purchase car insurance, RoI and NI, February 2017
Increased use of online channel over course of past year
Figure 32: Method used to purchase car insurance, NI, January 2016 and February 2017
Figure 33: Method used to purchase car insurance, RoI, January 2016 and February 2017
ABC1s, regular internet users most inclined to buy online from insurer
Figure 34: Consumers who purchased car insurance online - directly through the insurance provider, by social class and daily internet usage, RoI and NI, February 2017
Younger consumers purchasing via price comparison websites
Figure 35: Consumers who purchased car insurance online - through a price comparison website, NI, February 2017
Consumers aged 45+ most inclined to purchase over the phone
Figure 36: Consumers who purchased car insurance over the phone, RoI and NI, February 2017

RENEWAL BEHAVIOUR
Three quarters of consumers shopped around at last renewal
Figure 37: Car insurance renewal behaviour, NI and RoI, February 2017
Only around a fifth opt to renew without shopping around
Figure 38: Consumers who stayed with existing insurer and didn't shop around when last renewed car insurance policy NI and RoI, by gender and age, February 2017
Around half shopped around – but ultimately stayed with existing insurer
Figure 39: Consumers who stayed with existing insurer but only after shopping at last renewal time, by gender, age and social class, NI and RoI, February 2017
Around a quarter of consumers switched to a different insurer
Figure 40: Consumers who switched to a different insurer when last renewed car insurance policy, by gender, age and social class, NI and RoI, February 2017

INTEREST IN ADD-ONS
Most popular add-ons held by majority of motorists
Figure 41: Features of car insurance that consumers currently have or are interested in, NI and RoI, February 2017
Reasonable potential demand for some add-on features
Figure 42: Features of car insurance that consumers do not already have as part of their car insurance policy but are interested in and would be willing to pay more for, NI and RoI, February 2017
Strong interest in certain features – If they are free
Figure 43: Features of car insurance that consumers do not already have as part of their car insurance policy but are interested in but would not be willing to pay more for, NI and RoI, February 2017
Significant minority have no interest in 'gimmicky' add-ons
Figure 44: Features of car insurance that consumers do not already have as part of their car insurance policy but would not be interested in having, NI and RoI, February 2017

APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Data sources
Generational cohort definitions
Abbreviations

List of Table

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