The Insurance Uptake Score is our new bi-annual barometer of insurance purchasing decisions in the UK.
The research(1) covers ten common types of personal lines insurance. This is any insurance policy taken out by an individual in a private capacity instead of for business or professional use.
It asks those responsible for purchasing personal lines insurance products about their anticipated decisions for the next 12 months. This includes their likelihood to continue, purchase, increase, reduce or cancel their cover.
The Insurance Uptake Score for each insurance type shows its predicted growth over the next 12 months. From highest to lowest growth, the score for each product is:
- Travel insurance (annual): +15%
- Health insurance: +14%
- Home insurance - buildings: +13%
- Life insurance: +10%
- Motorbike insurance: +10%
- Gadget insurance: +6%
- Pet insurance: +6%
- Home insurance - contents: +4%
- Homes insurance - buildings and contents: +4%
- Motor insurance: +3%
The Insurance Uptake Score is a unique metric based on the premise of the Net Promoter Score. It compares the net increase (respondents who will take out new cover or expect to increase their cover) with the net decrease (respondents who will stop their cover or reduce their coverage level). This net increase less the net decrease is the calculation used for the Insurance Uptake Score(2).
Propensity to switch provider
Across all ten products, insurance holders were asked about their intentions to stay with the same provider at renewal. On average, over three-quarters intend to stay with the same provider. Twenty-four per cent of personal lines insurance holders intend to switch at renewal during the next 12 months.
Travel insurance to see the largest growth
Our report found that annual travel insurance is set to see a 17% increase in new purchases. A 6% growth is predicted for existing holders increasing their cover. This is either by increasing the limits they’re covered for or adding additional cover or add-ons. A quarter of existing annual travel insurance policyholders say they’re likely to switch providers at the point of renewal.
It’s likely that the Covid-19 pandemic has had a large sway regarding annual travel insurance. Many international borders were only fully opened in 2022, but even then, consumer travel habits remained unusual. Travellers were hesitant to book multiple trips under the threat of further disruptions, so annual travel insurance uptake likely took a hit.
This reluctance for frequent travel hasn’t been helped by recent disruptions, from strikes across Europe to floods and fires. Many policyholders will need to claim on their insurance, so it’s likely that consumers are demanding higher coverage levels for peace of mind.
Substantial growth in health insurance
Closely following the predicted uptake of annual travel insurance is consumer purchases of health insurance (+14%). The largest factor driving this growth is existing policyholders looking to enhance cover by increasing the limit on their policy. An ever-stretched NHS is causing those who can afford to pay for private health cover, to ensure their policy is sufficient to meet their needs.
Changes to home insurance
All types of home insurance have also seen a significant predicted increase. One in seven customers said they will likely change their coverage in the next 12 months. Nine per cent of consumers plan to increase their cover, with 63% of those predicting to increase their limits. Twenty-six per cent said they’ll look to increase their protection by adding additional cover or add-ons. Five per cent of all policyholders said they plan to reduce their home insurance cover at the point of renewal.
Upcoming trends for motor insurance
One in ten motor insurance customers plan to change their coverage in the next 12 months. Seven per cent intend to increase their cover and 5% will look to reduce theirs. Of the 7% planning to increase their cover, 42% will heighten the limits of their policy. Forty per cent will enhance their policy by adding additional cover or add-ons.
Pet insurance coverage levels
Thirteen per cent of existing pet insurance customers predict they’ll change their level of cover at the point of renewal. Eight per cent of these are looking to enhance their cover by increasing limits (55%) or adding additional cover or add-ons (32%). Five per cent of insured pet owners intend to decrease their cover within the next 12 months.
Insurance uptake trends
As the first instalment of the Insurance Uptake Score, this data sets a strong base for future reports and trends. As we continue to emerge from post-pandemic times, it’s likely that many personal lines insurance products will see notable changes.
This report’s findings are backed up by Ian Hughes, CEO of Consumer Intelligence: "In this fast-evolving insurance landscape, firms need to not only have a view of the here and now, but also of what’s on the horizon. With the resurgence in travel, and consumers' post-Covid appreciation of the importance of having adequate travel insurance, it's unsurprising that travel insurance take-up is set to grow. Whilst growth is looking likely for all personal lines insurance markets, as the cost-of-living crisis deepens, we could see consumer insurance buying behaviour adapt to survive - making it important for insurers to keep their finger on the pulse."
Download the full Insurance Uptake Score report for H2 2023 here.
The Insurance Uptake Score is released twice a year, in September and March. The Insurance Uptake Score for H1 2024 will be published in March 2024.
1) Research was conducted from 28 July - 3 August 2023 amongst 2,144 UK adults by Consumer Intelligence on behalf of Smart Money People.
2) The Insurance Uptake Score calculation is solely based on respondents for whom the product is relevant i.e. they either already have a policy or intend to take one out in the next 12 months. It excludes those without the cover or who have no intention of taking it out.