UK Home Insurance Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Technological advancements have the potential opportunities to address the rising consumer desires and regulatory demands in the Insurance Industry. InsurTech is highly contributing to solving the complexities with it's wearable, automotive and smart home technology solutions through the various digital platforms. Insurers are increasing investments in innovation and emerging technologies in the distribution channels proving that they offer more than just traditional insurance coverage to policyholders.

Industry reports explore that UK InsurTechs saw over USD 1 billion of investment activity through 2018, up from USD 792 million in 2017. In line with overall FinTech investment activity, InsurTech was fuelled by the first half of the year with investment nose-diving in H2-2018. Between July and December 2018, just USD 63 million of investment activity took place, versus USD 406 million during the same period in 2017.

Purchasing household insurance policies online has become increasingly popular in the UK, and is the most used channel by the policy seekers. Industry sources reported that currently, more than 40% of sales are happening through online platforms.  Providers must have a strong online presence in order to ensure growth in the present market scenario. The most common pre-purchase activity is visiting a price comparison website, highlighting the importance of price for customers. As a result, it is essential that both premium prices and the cover provided are extremely competitive.

As the market has huge potential consumers, the Insurers are simultaneously offering competitive Insurance policies. 

Direct Line Home Insurance Plus - Unlimited buildings cover and up to GBP 100,000 of contents cover with a GBP 4,000 valuable single item limit. Accidental damage included as standard. It can cover GBP 50,000 for alternative accommodation and rent (under buildings cover), theft from outbuildings (GBP 5,000), contents outside (GBP 2,500) and up to GBP 1,000 per bicycle. The home emergency is included as standard up to GBP 500 for a call out and up to GBP 250 for a replacement boiler. 

John Lewis Finance Premier - Unlimited buildings, contents, and alternative accommodation cover. Accidental damage included as standard. GBP 3,000 valuable single item limit. Theft from outbuildings (GBP 5,000), contents in the garden (GBP 5,000) and up to GBP 1,000 per bicycle. The home emergency is included as standard up to GBP 1,500. 

M&S Bank Premier - Unlimited buildings, contents, and alternative accommodation cover. Accidental damage included as standard. GBP 15,000 valuable single item limit. Unlimited theft from outbuildings or contents in the garden and up to GBP 15,000 for bicycles away from home. The home emergency is an optional extra and can cover up to GBP 1,000 of repairs.