Alternative home insurer interest declines in the U.K.

In 2021, GlobalData’s survey, “any energy provider” topped the list of alternative providers from which customers had purchased, or would purchase, home insurance. In 2022, however, energy providers saw the largest drop in interest among all alternative insurers. (Credit: A_stockphoto/Shutterstock.com)

U.K. insurance customers showed declining interest in alternative home insurance options in 2022 compared to the previous year, according to GlobalData’s 2022 U.K. Insurance Consumer Survey. Big tech, energy and communications players have long posed a threat to traditional insurance carriers should they chose to enter the space, but a drop in interest in purchasing insurance from these companies may signal declining trust from consumers.

“Although reduced consumer interest in these alternative providers is clear, it still remains a significant threat to the home insurance industry,” Ben Carey-Evans, senior insurance analyst at GlobalData, said in a release. “The greatest threat across the industry as a whole may be embedded insurance. While it is less of a threat within home insurance specifically, product manufacturers (such as mobile providers or car manufacturers) offering insurance at the point of sale offers convenience to customers, so it is a growing trend to watch.”