Increasing competition in the market is the biggest threat to the home insurance sector, according to new research by LV= Broker.
In a survey of brokers working in personal lines, 51% say the biggest threat to growth will be growing competition from other brokers and direct insurers in 2015. Home insurance premiums fell by around 5% across the market in the past year as many insurers sought to grow their share of the market to make up for less profitable motor business.
The weather continues to be a concern for many brokers, with the floods and storms of 2014 still in recent memory. 29% of brokers identified adverse weather as the biggest threat to the sector, with a further 10% citing the implementation of Flood Re as the key challenge.
LV= Broker has improved its ABC home insurance product as part of its strategy to grow in the home market. The underwriting footprint has also been increased to include more postcode areas and occupations and home contents insurance customers can now tailor the personal possessions cover to suit their individual needs. For instance, customers can now insure a single item away from the home, such as a watch or an iPad, instead of having to insure multiple items away from the home under the personal possessions cover.
Michael Lawrence, personal lines director at LV= Broker, said: “The home insurance market is extremely competitive at the moment with rates having fallen over the last quarter. There is still a great opportunity for brokers to grow their book by providing advice and services to customers in what is a challenging and increasingly diverse market.
“We have enhanced our ABC home product to suit a wider range of customers, as part of our continued strategy to grow in this market.”