THE FUTURE OF INSURANCE: UK PRESS RELEASE

62% of UK consumers choose insurance via price comparisons websites

Only 27% have multiple insurance policies with same provider 

LONDON, September 21, 2021 – New research from global technology and management consultancy Capco has revealed nearly two-thirds (62%) of UK consumers choose insurance products via price comparison and aggregator review websites. 

This underlines the move to a new era of digitally savvy customers, where traditional brand loyalty is fading and the majority of consumers want to assess offerings from multiple insurers. While 84% of UK respondents have at least one insurance policy, only 27% have multiple insurance policies with the same provider, significantly below the survey’s global average of 40%. 

Capco surveyed 2,000 UK consumers to gauge their impressions of insurance products and providers to capture public attitudes toward consumer insurance, the key products and services used, and emerging trends. The results form part of a larger survey of 14,000 consumers across 13 markets globally. 

Other notable findings in the UK survey include:

• Living up to Brits’ reputation as animal lovers, 24% of UK respondents purchased pet insurance in the past year – the highest level recorded across all 13 countries canvassed in the survey (global average: 10%).
• UK responses indicate a low take-up of health insurance. Just 17% of UK-based holders of UK insurance policies had purchased private health insurance in the past year – compared to a 36% global average – reflecting the trust placed in the NHS as a provider of free healthcare at the point of delivery.
• There is a clear willingness to embrace digitalisation - and the enhanced personalisation it can offer – with nearly six in ten (58%) UK respondents saying they would use an app that offers a more unified and complete picture of their insurance and other financial products.
• Although value for money was cited by 41% of respondents as the number one motivating factor when it came to choosing insurance, customers’ expectations and preferences vary. Just over a third of respondents (34%) would not share their data to gain a cheaper premium, with respondents over the age of 65 particularly reluctant in this respect.
• Trust in the sector has also been impacted to a degree by COVID-19. 22% of consumers surveyed indicated that they trust insurers less post-pandemic, while 43% expressed a lack of confidence about the level of protection provided by their insurance products post-COVID.

Matt Hutchins, Global Insurance Lead at Capco, said: “Our survey shows there is a strong appetite in the UK insurance market for digitally focused tools that educate the customer, provide personalised support and financial information. If insurers invest in these tools they can enhance their customer relationship, retention levels and drive repeat business.

“However, a march toward greater personalisation cannot come at the expense of damaging customers’ trust in their providers. Insurers will need to navigate concerns around use of personal data, the decreasing levels of trust since the pandemic began, and the disparate needs of their clients.”   

Capco’s global survey was conducted online in April and May 2021 and collected responses from a total of 2,002 UK individuals and 13,798 in total. The markets surveyed were the UK, US, Canada, Brazil, Germany, Austria, Switzerland, Belgium, Hong Kong, China, Singapore, Thailand and Malaysia. Country representative quotas were followed. Survey respondents were drawn from six age demographics: 18-24, 25-34, 35-44, 45-54, 55-64, and 65+. Globally, 49% of respondents identified as male, 50% identified as female, and 1% identified as other.

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Media contacts:

Alastair Doyle/ Nick Richardson/ Julia Niedoborek
Four Communications
capco@fourcommunications.com
+44 7876 879945


About Capco

Capco, a Wipro company, is a global technology and management consultancy specializing in driving digital transformation in the financial services industry. With a growing client portfolio comprising of over 100 global organizations, Capco operates at the intersection of business and technology by combining innovative thinking with unrivalled industry knowledge to fast-track digital initiatives for banking and payments, capital markets, wealth and asset management, insurance, and the energy sector. Capco’s cutting-edge ingenuity is brought to life through its Innovation Labs, and award-winning Be Yourself At Work culture and diverse talent. To learn more, visit www.capco.com or follow us on Twitter, Facebook, YouTube, LinkedIn Instagram, and Xing.