UK Home Emergency Insurance 2010

Date: April 1, 2010
Pages: 38
Price:
US$ 4,495.00
Publisher: Datamonitor
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: UC655CC5263EN
Leaflet:

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UK Home Emergency Insurance 2010
Introduction

The report is an invaluable guide to the UK home emergency insurance market, providing insight into competitor strategies and performance as well as overall market growth and trends. It examines distribution, including the major role of utilities, identifies the key providers and provides unique market sizing data.

Scope

* Market size and segmentation data.

* The latest market developments and advertising statistics for home emergency insurance by competitor.

* A discussion of the main factors affecting the home emergency insurance market in the future

Highlights

Time-series analysis of policy number data from British Gas and HomeServe suggests that the home service/emergency insurance market has been through the "growth" phase of the product lifecycle and is now in the "maturity" phase.

British Gas, one of the biggest advertisers for home emergency products, has launched its "look after your world" series of TV advertisements, which includes promoting its boiler repair service.

Reasons to Purchase

* Understand size and segmentation of this market in terms of policy numbers.

* Help in planning your entry into the UK home emergency market.

* Gain insight into the distribution profile of this sector.
OVERVIEW

Catalyst
Summary
Executive Summary
Home emergency is a mass market sector with utilities playing a key role
Home emergency and home care is a mass market product
Utilities have a competitive advantage
British Gas will be a top 10 insurer
Table of Contents
Table of figures
Table of tables
Market Context
Introduction
Home service is a substitute for home emergency insurance
Home emergency insurance covers a number of areas including heating systems, blocked drains and electrics failure
Home service products offer annual servicing as well as covering emergencies
Utility companies have a competitive advantage
Home emergency insurance and home service products are a good fit for utility providers
Home insurance providers also play a role in the sale of home emergency insurance
There are 17 million contracts in force
Datamonitor estimates that there are 17 million home service contracts and home emergency insurance policies in-force
The market is maturing
The recession has made some consumers reluctant to buy extra add-ons
Customer Focus
Introduction
Home emergency presents good value to consumers
Home emergency insurance offers good value to consumers
Raising consumer awareness remains a challenge for home insurance providers
Maintenance contracts have attracted criticism from consumer media groups such as Which?
Utility companies can target their service products at a captive customer base
Central heating cover is the most common form of home emergency insurance sold by energy companies
Homeserve partners with water companies and is particularly strong on water-related propositions
Companies advertise by direct mail
Direct mail is always the most popular for home emergency insurance advertising
Homeserve spends by far the most on advertising
Homeserve spent ?13m on advertising its home emergency cover
British Gas has reduced its marketing budget and is focusing on press and TV advertisements
Shield spend ?0.8m to advertise home emergency market by direct mail
E.ON started advertising its home emergency product in 2009
British Gas launched a new advertising campaign for home repair in November 2009
Competitive Dynamics
Introduction
Most home insurance providers partner with HomeServe and Inter Partner Assistance
Few home insurance providers underwrite their own home emergency policies
The existence of home service providers has made it relatively easy for insurers to enter this market
Utilities dominate the standalone market
Inter Partner Assistance underwrites most policies
AXA Assistance recorded ?43.4m in turnover from its UK home assistance business
Homeserve manages repairs and claims for a large number of insurance providers
Homeserve's operating income has more than doubled since 2005
Homeserve aims to achieve higher profitability by transferring its focus to its UK membership business
Homeserve offers a wide range of home service products, from insurance to one-off repair
Homeserve sells insurance through its affiliates
Homeserve is exploring new opportunities to grow its business in 2010
Homeserve provides services directly to consumers through its website
Repair services also form an integral part of Homeserve's business
British Gas aims to be a top 10 insurer
British Gas is the UK's leading energy and home services provider
British Gas is aiming to grow through a higher conversion ratio from its one-off repair service
British Gas is in a strong position and is aiming to become a top-10 UK insurer by 2011
Future Decoded
Introduction
There are opportunities to grow the market
The rental sector represents a huge opportunity for competitors to grow their market share
The market is maturing

APPENDIX

Definitions
Premium income measures
Earned premium
Gross premium
Net premium
Written premium
Other definitions
Channel
Direct insurer/writer
Brokers
Bancassurers
Brandassurers
Platform
Further reading
Ask the analyst
Datamonitor consulting
Disclaimer

LIST OF TABLES

Table 1: Number of home service contracts and home emergency insurance policies in-force by type, 2009
Table 2: Contract numbers for British Gas and HomeServe, 2004-09
Table 3: Home emergency one-off call-out cost (quotes from ReactFast)
Table 4: British Gas' home service contracts in-force by type, 2008-09
Table 5: Homeserve's home emergency policy numbers by category, 2008-09
Table 6: Home emergency insurance advertising spend by medium, 2004-09
Table 7: Home emergency insurance advertisers by medium, 2009
Table 8: Top 10 UK emergency insurance advertisers ranked by 2009 expenditure, 2005-09 (?)
Table 9: Home emergency insurance providers list: top 20 home insurance providers
Table 10: Other standalone home emergency insurance providers
Table 11: Homeserve's five-year operation performance, FY2005-09 (?000s)

LIST OF FIGURES

Figure 1: Aviva offers home emergency insurance from ?7.95 a month
Figure 2: British Gas's boiler and heating service contracts includes an annual boiler inspection
Figure 3: British Gas offers a range of services, from ongoing care to one-off repairs to homes
Figure 4: Home emergency cover is often sold as an add-on to a customer's home insurance policy
Figure 5: British Gas' strength is gas/boiler contracts whilst HomeServe's strength is in plumbing and drains
Figure 6: The boom years for home service and home emergency insurance are over, however there is steady growth
Figure 7: Homecall+ offers three level of covers for its home emergency range
Figure 8: Most requested domestic emergency jobs cost around ?100 or above
Figure 9: TV advertising expenditure has been decreasing over recent years as a proportion of the total marketing budget
Figure 10: Homeserve spent the most on advertising home emergency insurance in 2009
Figure 11: British Gas advertises its one-off boiler repair service to attract non- customers
Figure 12: Homeserve is shifting its focus from its service division to its higher profit margin membership business
Figure 13: Homeserve offers its affiliate partners up to ?45 per sale
Figure 14: Homeserve offers a range of home emergency products to customers
Figure 15: Homeserve offers one-off repair services to its customers
Figure 16: British Gas owns Dyno-Rod, which specializes in drain care and plumbing
Figure 17: British Gas offers a variety of HomeCare service contracts
Figure 18: British Gas is aiming to grow through achieving a higher conversion of its business from its one-off repair service
Figure 19: The rental sector represents a significant opportunity for home emergency insurance providers to grow the market

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