The household insurance market, the second-largest personal lines product after motor in terms of GWP, remains highly competitive as insurers are attracted to the respectable profit levels being achieved. However, market saturation and overcapacity are very real problems, and insurers will have to think creatively if they want to succeed in this space.
Ensure your strategy is robust against the key issues facing the household insurance market.
Gauge the market's profitability, the factors that influenced its performance, and how insurers are adapting to this.
Map your business plan against our forecasted GWP for the market.
Analyze the key issues that will continue to affect the market going forward.
How has the market performed in 2014 and what are its future prospects?
What are the key developments and issues shaping the household space?
What impact is competition having within the market?
While many insurers are currently focusing on mass market customers the majority of whom are now buying combined policies one area that offers significant growth opportunities is the tenants market, as penetration in this area is much lower.
Competition still plays a crucial role within the UK household insurance market, with insurers being attracted by respectable profit margins generated as a result of mild weather conditions.
The persistency in rates remaining soft has seen household insurance market GWP continue to fall further since 2011, with GWP in 2014 dropping to 6.7bn a contraction of 300m (4.3%).