UK home insurers have been warned of imminent competition from big technology companies after a recent poll found that more than a quarter of consumers would purchase a policy from Google.
GlobalData’s 2022 UK Insurance Consumer Survey found that 26% of consumers would buy home insurance from Google if it were to enter the market, while 23% would purchase a policy from energy suppliers, and 20% from Amazon.
The accelerated rise of digitalisation since the pandemic, and increased use of smart home devices, means that technology companies pose a particular threat to insurers due their digital expertise and strong brand recognition to attract customers.
While the survey found that Google may be perceived as the most trustworthy new entrant into the insurance market, Ben Carey-Evans, senior insurance analyst at GlobalData, said that Amazon will also be a particular concern.
“It has been rumoured to be on the verge of entering the insurance industry for many years now,” he continued.
“Facebook, on the other hand, is unlikely to be as successful as a result of negative press stories in recent years. Consumers are also unlikely to view WhatsApp as a viable provider of such a serious product.”
The non-traditional insurers that UK consumers would considering buying home insurance from are shown below:
The researchers outlined how Google and Amazon are well-positioned to enter the home insurance market due to strong tie-ins to many homes across the UK, with Google Home and Amazon Echo, respectively.
Energy suppliers also have a presence within UK insurance, with British Gas being the leading supplier of home emergency insurance for stand-alone products in the country.
“In reality, it looks like these players will look to come in as partners for insurers and offer the technology to aid products,” Carey-Evans said.
“However, GlobalData found that if these companies did decide to offer end-to-end household products, a significant proportion of consumers would view them as viable providers, so the threat to incumbent insurers is there.”
Image credit: iStock
Graphic credit: GlobalData
Author: Chris Seekings