The home insurance market is in a state of flux. Customer switching rates have hit an all-time high thanks to the unprecedented and sustained premium inflation seen over the last 18 months.
The latest momentum data from Consumer Intelligence’s Insurance Behaviour Tracker, looking at the six months between April and November 2023, offers a snapshot into which providers are gaining and shedding market share amidst increased churn.
Shifts in consumer behaviour
When comparing the six months between April and November 2023 to the same period in 2022, we see a significant shift in shopping and switching rates. Notably, the proportion of customers switching provider at renewal has increased by 8% (28% to 36%), while those remaining loyal dipped from 41% to 38%.
Fastest growing home insurance brand
In just six months, HSBC, grew its book by 46.1%, significantly higher than the previous year’s 38.9%. This growth is attributed to consumer confidence in their cover, with a convincing 30% of their new and existing customer base strongly endorsing the superiority of HSBC’s offerings over competitors. Such endorsement is only eclipsed by Co-op, which has managed to secure the top spot for customer confidence.
Momentum (min sample=50)
April 2023 to November 2023
HSBC
46.1%
Policy Expert
39.3%
Barclays
34.6%
Tesco
26.8%
Hastings
25.8%
Home insurance market share leader
Aviva’s growth narrative stands tall; it’s the only top 5 incumbent to fortify its market stronghold, expanding its share by 1.4%. This expansion casts a shadow over Admiral, LV=, and Direct Line, who have seen their market share slip by 0.4%, 1.2%, and 0.1%, respectively. Collectively, the top five brands have clinched 33.5% of the market, up from 30% just six months prior, a move indicative of consolidation at the apex of the market.
Market Share (min sample=50)
April 2023 to November 2023
Aviva
10.0%
Admiral
6.60%
LV=
5.80%
Direct Line
5.60%
AXA
5.50%
AXA’s strategic comeback
Amidst this landscape, AXA has strategically pivoted back into the top 5, bumping Policy Expert down the leader board to ninth. This manoeuvre is underpinned by a sturdy gain of 0.9% in market share, hoisting them from a previous sixth-place stagnation. AXA’s assertive pricing, with products like AXA Home, AXA Home Plus, and AXA Home Premier undercutting the market average since Q3, has clearly resonated with cost-conscious consumers.
Policy Expert reigns king on retention
Policy Expert, the brand synonymous with robust growth, continues to outpace expectations. Their market share has burgeoned by another 1%, reflecting a 39.3% increase in their book size. Despite a slight decline in new business acquisitions, from 4.2% to 3.6% of the switcher market, Policy Expert demonstrates the strength of their retention strategies, holding an enviable 81.4% of their customer base steadfast, well above the 60.5% market average.
A closer look at customer loyalty for Policy Expert reveals that 30% remained for the allure of a lower premium, while another 30% felt the competition’s savings weren’t substantial enough to warrant a change. The decisive factor for both switchers and loyalists? Cost-effectiveness, with 56% citing ‘cheapest’ as their top reason for selecting Policy Expert, only 2% shy of the highest rate in the market.
