Last year, Aviva registered 24% growth in its UK personal lines gross written premium, following its strong rating discipline in the inflationary environment and growth from new propositions such as Aviva Zero, Consumer Intelligence said. The Consumer Intelligence commentary also noted that the inflationary environment meant for the motor market new business quotes increased by 66% through 2023, and 41% for home insurance. Meanwhile, the first half of this year saw a 12% increment in prices for Aviva’s home insurance premium with a 3% decrease in motor, the report noted.
In addition, it added that Aviva’s first half of 2024 saw an increase in home insurance new business quote competitiveness, with at least one group brand appearing in the top five results on price comparison websites (PCWs) for over double the number of risks in June 2024 compared to 2023.
“This was driven by pricing movements which not only increased competitiveness but allowed Aviva to better stack brands together in PCW results,” Consumer Intelligence noted.
Consumer Intelligence called Aviva’s motor brand Aviva Zero the company’s “success story” as it has continued to perform well in the market in the past two years. The consumer research company noted that from its launch in February 2022 through to August 2023, it had sold more than 250,000 policies - and by March 2024, that had risen to 500,000 policies.
Meanwhile, to maintain its financial competitiveness, Aviva has made some adjustments. Aviva Zero increased its premiums in the first quarter of this year, amid a softening market, which resulted in a reduction of its competitive share on PCWs.
“However, strong price cuts in April and May allowed [its] share to return to 2023 levels in Q2,” Consumer Intelligence explained.
Consumer Intelligence also noted that Aviva benefited from retaining customers, who were slightly less likely to shop around than those a year prior.
“Of those that did shop, a greater proportion were retained. Fewer Aviva Home customers made a claim than the year before, though motor claimants were above the market average for the insurer, having been below in H1 2023,” the commentary stated.
New products could also lead to greater competitiveness in the second half of the year, the research company noted.
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