Within the quickly evolving insurance coverage business, the power to foretell market, model and competitor efficiency has by no means been extra essential. The lately printed half-year outcomes of Aviva underscore simply how highly effective information insights could be in forecasting competitor outcomes, guiding strategic choices, and finally driving success.
By leveraging complete information evaluation, our Insurance coverage Insights supervisor Max Thompson surfaced key tendencies and efficiency indicators, offering a transparent image of Aviva’s robust market positioning lengthy earlier than the outcomes had been formally introduced, as printed in Insurance coverage Edge and Insurance coverage Enterprise.
Predicting robust development
Of their H1 outcomes, Aviva reported a powerful 30% year-on-year development, bringing their complete Private Traces Gross Written Premiums (GWP) to £1.8 billion. The agency attributed this success to cost will increase made to fight inflation and continued development in new enterprise from their Aviva Zero product and distribution by means of value comparability web sites.
“Our information clearly confirmed robust efficiency from Aviva in new enterprise quote competitiveness, with not less than one group model showing the highest 5 outcomes on Value Comparability Web sites (PCWs) for over double the variety of dangers in June 2024 versus a 12 months prior. This was pushed by pricing actions which not solely elevated competitiveness however allowed Aviva to raised stack manufacturers collectively in PCW outcomes,” explains Max.
Our evaluation additionally highlighted the continued success story of Aviva Zero, rising to be one of the vital aggressive manufacturers on PCWs. To take care of this competitiveness in 2024 within the face of ongoing inflation, changes needed to be made. In Q1 2024, we noticed Aviva Zero elevated premiums in a softening market, which lowered aggressive share on PCWs. Nevertheless, robust value cuts in April and Could allowed share to return to 2023 ranges in Q2. This meant Aviva Zero quoted premiums in June had been decrease than at the beginning of 2024, in contrast with robust will increase within the first half of 2023.
Strengthening buyer retention
Within the outcomes, Aviva describes itself as ‘The UK’s go-to model throughout insurance coverage’, and certainly the agency’s model energy is serving it nicely. Not solely is Aviva attracting new clients and driving development, however they’re profitable at retention too.
Our Insurance coverage Behaviour Tracker exhibits that for each Motor and Dwelling, clients who held a coverage with the Aviva model within the first half of 2024 had been barely much less more likely to store round than these a 12 months prior. Of those who did store, a higher proportion had been retained.
Moreover, fewer Aviva Dwelling clients made a declare than the 12 months earlier than, although Motor claimants had been above the market common for the insurer, having been beneath in H1 2023.
Additional success in H2?
“If something, Aviva’s success in H1 was extra spectacular than we had anticipated – nevertheless the indicators had been clearly there for the route of journey. And the information factors to an equally profitable H2, with new merchandise doubtlessly resulting in higher competitiveness,” suggests Max.
Could noticed the launch of a number of new tiers for the QuoteMeHappy.com motor product, first on Examine the Market with MoneySupermarket following in July. This has introduced the group to 11 variations of motor manufacturers, merchandise and tiers dwell on PCWs presently, the joint largest out there. Showing on practically 30 additional merchandise by means of partnerships and brokers, Aviva has an unmatched footprint with which to draw Motor new enterprise.
July noticed an growth of Aviva’s Dwelling insurance coverage partnership with Lemonade. Already a market main model for contents-only merchandise, a buildings and contents mixed product was added to Examine the Market. Whereas competitiveness is presently restricted by low quotability, Shopper Intelligence expects this to drive additional Dwelling competitiveness by means of the second half of 2024.
