866-997-4948(US-Canada Toll Free)

CAR INSURANCE - IRELAND - MAY 2018

Published By :

Mintel

Published Date : May 2018

Category :

Insurance

No. of Pages : N/A

Even though motor insurance premiums have largely moderated in NI and declined quite significantly in RoI over the past 12 months, the cost of car insurance remains far higher than it was even four or five years ago. RoI consumers, in particular, are unhappy with the cost of their car insurance. With loyalty towards car insurers already low, the environment is ripe for increased shopping around and switching activity.

Table of Contents

OVERVIEW
What you need to know
Issues covered in this Report
Definitions
EXECUTIVE SUMMARY
The market
Figure 1: Gross written premiums, private motor insurance, €m, IoI, RoI and NI, 2013-18
Forecast
Figure 2: Indexed gross written premiums, private motor insurance index, RoI and NI, 2013-22
Market factors
Motor insurance premiums down in UK overall, but up in NI
Premiums in RoI down significantly 2017-18, but still historically high
Broad optimism among NI and, especially, RoI consumers
Over a quarter of Irish consumers could absorb higher premiums
Companies and Brands
The consumer
99% of motorists have car insurance, just 1% do not
Figure 3: Ownership of car insurance, NI and RoI, January 2018
AXA the market leader both in NI and RoI car insurance markets
Figure 4: Insurance providers that motorists currently have car insurance with, NI, January 2018
Figure 5: Insurance providers that motorists currently have car insurance with, RoI, January 2018
Online via insurer now the single-most popular channel
Figure 6: Method used to purchase current car insurance policy, RoI and NI, January 2018
Most policyholders shopped around at their last renewal date
Figure 7: Consumers and renewal behaviour, RoI and NI, January 2018
Willingness from consumers to act to reduce premiums
Figure 8: Agreement with statements relating to car insurance and car insurance providers, RoI and NI, January 2018
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Motor insurance premiums up in NI, but down overall in UK
RoI premiums falling, but remain high by historical standards
Irish consumers are broadly positive about future situation
Just over a quarter of Irish consumers could absorb higher premiums
MARKET SIZE AND FORECAST
Value of gross written premiums approaching €2 billion in 2018
Figure 9: Gross written premiums, private motor insurance, €m, IoI, RoI and NI, 2013-22
Market to continue to grow, but at a more moderate pace
Figure 10: Gross written premiums, private motor insurance index, RoI and NI, 2013-22
Gross written premiums for car insurance up 25% in 2016
Figure 11: Gross written premiums, all insurance types, € million, RoI, 2016
Irish consumers spending over $4,000 yearly on insurance premiums
Figure 12: Insurance premiums per capita, $, selected European countries, 2016
MARKET DRIVERS
Insurance costs down overall in UK, but increasing in NI
Figure 13: Average motor insurance premiums, quarterly % change, by TV region, UK (including NI), Q1 2018
Average motor premium in NI now in excess of £850 per annum
Figure 14: Average motor insurance premiums, by TV region, UK (including NI), Q1 2018
Figure 15: Average motor insurance premiums, £, UK (including NI), Q3 2014-Q1 2018
Young motorists in UK paying almost three times average premium
Figure 16: Average motor insurance premiums, by age, £, UK (including NI), Q1 2018
RoI premiums fall significantly, but still high compared to recent years
Figure 17: Motor insurance premiums index, RoI, April 2010-April 2018
Sizeable minority anticipate improvement in personal fortunes
Figure 18: Consumers' assessment as to whether own financial situation will improve, stay the same or decline over the coming 12 months, NI and RoI, March 2018
Just over a quarter could take on higher car insurance premiums
Figure 19: How consumers rate their current financial situation, NI and RoI, March 2018
Three quarters of Irish consumers currently own a car
Figure 20: Ownership of a car, RoI and NI, January 2018
Figure 21: Reason for not owning a car, RoI and NI, January 2018
Less than a quarter of consumers driving new or nearly-new cars
Figure 22: Type of car ownership, RoI and NI, January 2018
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Insurance industry brands in Ireland starting to react to technology
FBD to underwrite An Post’s Insurance brand, One Direct
Direct Line partner with Tesla in the UK
Zurich in negotiations to acquire Dublin-based insurer, Blue Insurance
Aviva Ireland retains sponsorship of Dublin stadium until 2025
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
Direct Line Group (NI Only)
Key facts
Motor insurance products
Recent developments
An Post (RoI Only)
Key facts
Motor insurance products
FBD (RoI Only)
Key facts
Motor insurance products
Recent developments
Liberty Insurance (Hughes Insurance in NI)
Key facts
Motor insurance products
Recent developments
Abbey Insurance Brokers (NI Only)
Key facts
Motor insurance products
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
Bank of Ireland
Key facts
Motor insurance products
Ulster Bank
Key facts
Motor insurance products
Aviva
Key facts
Motor insurance products
Recent developments
WHO’S INNOVATING?
Big data impacts the industry as consumers seek more ‘on-demand’ products
Cuvva
By Miles
Internet of Things interacting with telematics to improve insurance products
New apps seeking to invert the insurance price comparison model
Honcho
Wrisk
THE CONSUMER – WHAT YOU NEED TO KNOW
Overwhelming majority of motorists have car insurance
AXA the market leader both in NI and RoI car insurance markets
Online via insurer now the single-most popular channel
Around three quarters of consumers shopped around at renewal
Initiatives to reduce premiums interesting consumers
OWNERSHIP OF CAR OWNERSHIP
Majority of motorists have a fully comprehensive policy
Figure 23: Ownership of car insurance, NI and RoI, January 2018
Ownership of fully comprehensive cover lowest among younger drivers
Figure 24: Ownership of fully comprehensive car insurance, by gender, age and social class, NI and RoI, January 2018
1 in 4 motorists aged 18-44 in RoI have third party or TPFT cover
Figure 25: Ownership of third party / third party, fire & theft cover, by gender, age and social class, RoI, January 2018
CURRENT PROVIDER
AXA the clear leader in NI car insurance market
Figure 26: Insurance providers that motorists currently have car insurance with, NI, January 2018
AXA appeals in particular to younger motorists in NI
Figure 27: Consumers who currently have car insurance with AXA, by gender and age, NI, January 2018
Three major players in the RoI car insurance market
Figure 28: Insurance providers that motorists currently have car insurance with, RoI, January 2018
AXA in RoI strongest among consumers aged 25-34
Figure 29: Consumers who currently have car insurance with AXA, RoI, January 2018
Aviva faring well among motorists aged 18-24 and 55+ in RoI
Figure 30: Consumers who currently have car insurance with Aviva, RoI, January 2018
Allianz appeals more to men than women, and 18-24s and 45-54s
Figure 31: Consumers who currently have car insurance with Allianz Group, RoI, January 2018
PURCHASING PROCESS
Online the dominant channel for purchasing car insurance
Figure 32: Method used to purchase current car insurance policy, RoI and NI, January 2018
Shift away from phone towards greater online use both in NI and RoI
Figure 33: Main methods used to purchase current car insurance policy, NI, 2016 and 2018
Figure 34: Main methods used to purchase current car insurance policy, RoI, 2016 and 2018
Strong tendency across all demographics to purchase online via provider
Figure 35: Consumers who purchased their current car insurance policy online - directly through the insurance provider, RoI and NI, January 2018
Women and older consumers most inclined to purchase via the phone
Figure 36: Consumers who purchased their current car insurance policy over the phone, RoI and NI, January 2018
Younger consumers, heavy internet users using price comparison sites
Figure 37: Consumers who purchased their current car insurance policy online - through a price comparison website, NI, January 2018
C2DEFs and light internet users’ slight preference to deal face-to-face
Figure 38: Consumers who purchased their current car insurance policy face to face/in a branch, RoI, January 2018
RENEWAL BEHAVIOUR
Three quarters shopped around at their last renewal date
Figure 39: Consumers and renewal behaviour, RoI and NI, January 2018
Younger consumers renewing without even shopping around
Figure 40: Consumers who stayed with their existing insurer and did not shop around at their last renewal, by gender and age, RoI and NI, January 2018
Men and consumers aged 45-54 shopping around, but staying
Figure 41: Consumers who stayed with their existing insurer but only after shopping around at their last renewal, by gender and age, RoI and NI, January 2018
Women and consumers aged 25+ most inclined to switch insurers
Figure 42: Consumers who switched to a different insurer at their last renewal, RoI and NI, January 2018
ATTITUDES TOWARDS CAR INSURANCE
Consumers willing to work with insurers to reduce premiums
Figure 43: Agreement with statements relating to car insurance and car insurance providers, RoI and NI, January 2018
Satisfaction with premiums far higher among NI policyholders
Figure 44: Agreement with statement, 'I am happy with the current cost of my car insurance', RoI and NI, January 2018
Two thirds of consumers used more than one price comparison site
Figure 45: Agreement with statement, 'I use more than one price comparison site to get the best car insurance deal', RoI and NI, January 2018
New technologies to have major implications for insurers and premiums
Figure 46: Agreement with statements relating to car insurance and technology, RoI and NI, January 2018
Consumers largely trust insurers, but reluctant to claim
Figure 47: Agreement with statements relating to car insurance and claims, RoI and NI, January 2018
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Data sources
Abbreviations

Make an enquiry before buying this Report

Please fill the enquiry form below.

  • Full Name *
  • Your Email *
  • Job Title
  • Company
  • Phone No. * (Pls. Affix Country Code)
  • Message
  • Security Code *