Increasing competition in the home insurance market and rising consumer confidence in buying cover online means providers need to place more focus on differentiating and promoting their products based on features and quality if they are to catch the attention of consumers.
That’s a conclusion of Defaqto in its latest edition of Defaqto’s Development opportunities in the home insurance market.
The new report suggests a trend of significant growth in the number of products available across the home insurance market. The number of policies within the standard market has grown by 10.7% since 2009, while policies available in the mid net worth (MNW) sector of the market has increased by 25% in the same period.
In addition to the rise in the number of policies available, Defaqto research has found that 85% of consumers are confident about researching and purchasing home insurance online without advice. Defaqto says that while this appears to show that more people than ever before are comparing cover before they buy, it is also adding to the competitive nature of the home insurance sector. As a result, it is increasingly important for providers to focus on product differentiation to make their offerings stand out to customers.
Mike Powell, Defaqto’s insight analyst for general insurance, said: “Providers and their products are faced with an increasingly crowded and competitive marketplace. In addition