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Insurance Trends and Opportunities :Econometric and UK Consumer Trends
Contents
Market Environment Advertising MarketConsumer Trends
Consumer Trends – Insurance
Consumer expenditure on insuranceIn billions, at current and constant 2005 prices
nVision/Experian forecast, February 2010-based projection (based on Q3 2009 data)
£0
£5
£10
£15
£20
£25
£30
£35
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Current prices Constant 2005 prices
Source: Experian/nVisionBase: UK
General insurance product ownership•Insurance product ownership, August 2010
72
68
57
36
27
24
22
20
16
16
15
14
13
0 10 20 30 40 50 60 70 80
Car insurance
Contents insurance
Buildings insurance
Annual travel insurance
Home emergency cover
Medical/Health insurance
Card protection insurance
Mobile phone insurance
Pet insurance
Legal expenses insurance
Personal accident insurance
ID theft insurance
Other type of insurance
%
Source: GMI/Mintel
Base: 2,000 internet users aged 16+
© 2010 Mintel International Group. All rights reserved. Confidential to Mintel.
• Private motor and domestic property insurance are and remain the largest sectors of the insurance market
• Difficult economic conditions saw premium income decline across many general insurance products during 2009. Commercial products and discretionary products were among the worst affected.
Purchasing or renewing insurance online
...of consumers expect to purchase or renew insurance online via either an insurer’s website or an aggregator
Two-thirds...
66%
Source: Accenture/nVisionBase: 3,555 respondents aged 18+ in 6 countries, 2010
Compared prices online forecast% of adults who have compared prices online in the last 6 months“Which of the following, if any, have you done on the Internet in the last 6 months…Compared/looked up prices for any product or service ?” nVision forecast – Summer 2010 based projection
Source: nVision ResearchBase: 1,000 face-to-face respondents aged 16+, GB
Price comparison sites are set to grow in the coming years and will continue to play a major role in the insurance market
Insurance and customer loyalty
UK consumers are most likely to ‘chop and change’
when it comes to purchasing or renewing
insurance, with only 29% showing loyalty by
remaining with their current provider
Source: Accenture/nVisionBase: 3,555 respondents aged 18+ in 6 countries, 2010
I stayed with my existing insurer but only after shopping
around42%
I switched to a different insurer
30%
I stayed with my existing insurer and didn’t shop around
24%
It’s my first insurance policy and I’ve yet to
renew it2%
Don’t know2%
CAR INSURANCE RENEWAL BEHAVIOUR, JANUARY 2011
Base: 1,140 adults aged 17+ who hold a car insurance policy
“Thinking about the last time you renewed your car insurance policy, which of the following statements apply?”
SOURCE: GMI/MINTEL
30% of policyholders switched providers at last renewal
• Three in ten motor insurance policyholders switched to a different provider at their last renewal.
• Around a quarter stayed with their existing insurer and didn’t bother to look for a better deal.
• More than two fifths shopped around at their last renewal but opted to remain with their existing insurer.
• Female policyholders are more likely than their male counterparts to switch insurers.
• The likelihood to switch reduces with age, with under-45s the most likely to have moved between insurers at their last renewal.
© 2010 Mintel International Group. All rights reserved. Confidential to Mintel.
“I think that it is more important than ever to have good insurance cover”% who agree or agree strongly, by gender, age and social grade
0%
10%
20%
30%
40%
50%
60%
70%
To
tal
Ma
le
Fe
ma
le
16
-24
25
-34
35
-44
45
-54
55
-64
65
+
AB
C1
C2
DE
Agree strongly Agree
Source: RSA/The Future Foundation/nVisionBase: 1,000 respondents aged 16+, UK, 2009
As a result of the changing economic conditions, people feel that is now more important to be protected
Advertising Climate
Media Spend• Financial
advertisers tend to spend the most on advertising on TV and Direct mail advertising followed by the Press
• On average the industry spent around 6% on Internet advertising (not including search)
Source: NNR adDynanix : 2009 - 2010
Impressions and Audience by Publisher - AdMetrix
• While Microsoft does not have the most impressions for this sector, it does have the most Unique Visitors
Bing Traffic KPIsOverall Insurance Traffic
• Insurance overall was down 9% in traffic for 2010 year on year
• However 2011 has seen strong growth so far with a 41% year on year increase in traffic for January-March
Product Traffic increases for 2010 (JAN-MAR)
• Car Insurance – up 62%• Home Insurance – up 14%• Life Insurance – up 26%• Generic Insurance – up
142%1. Microsoft Advertising Intelligence Tool
Bing Finance Searchers are…
Source: NNR JULY 2010 – JANUARY 2011
Insurance KW Demographics and Daily Trends:
1. Microsoft Advertising Intelligence Tool
Microsoft Media Network Trends
Network Demographics •66% of the impressions occur between 18 and 44, while a similar proportion of clicks occur in the higher age brackets, 25-54•Impressions and conversions peak in the 18-24 for females while the 25-34 peak is more male biased•53% of conversion occur between the 18-34 age bracket•Conversions for Finance usually entail a quote or an application
Source: Microsoft Media Network : July 2010 – March 2011
Network: Day of the Week• There is a slight decline in impressions through out the week
however consumers are more likely to click during first half of the work week and on Sunday
• Conversions have two peaks on Tuesday as well as at the end of the week on Friday
Source: Microsoft Media Network : July 2010 – March 2011
Network: Time of Day• There is a build of
Impressions and Actions during the early afternoon and a slight elevation in the early evening
• There is one main peak that occurs post-lunch before the end of the work day
Source: Microsoft Media Network : July 2010 – March 2011
Finance OpportunitiesPositioning and PricingBecause of so many variables in the market place, positioning of your product is key
Demographic/MosaicThe users and searchers for this type of product index well in demographic sectors and can be targeting with our Mosaic offering
Search and Display – Better TogetherUse both offerings to help boost your ROI moreover, use our display offering to help boost your brand campaign. Particularly when we have seen good increases in traffic in the start of 2011