Home insurers struggle to differentiate beyond rate

Almost half (49%) of UK consumers think that price is the only differentiator between home insurance products, according to YouGov research, commissioned by insurance provider Paymentshield and conducted with more than 2,000 adults.

The results also showed a widespread poor grasp of generic insurance terms among consumers, with 73% admitting they were not confident they would understand the meaning of different phrases like “trace and access” (65%), “loss adjuster” (37%), “rebuild cost (23%)” or “premium” (13%).

Rob Evans, CEO of Paymentshield, said: “There’s a lot of noise out there when it comes to financial policies – lots of jargon, confusing terminology, and complex policies for customers to wrap their heads around. It’s not surprising that people often hone in on cost, because it’s the easiest thing to understand.”

Brian Brown, head of insight at research firm Defaqto, added: “With the boom of comparison sites in recent years, many consumers have felt more empowered to make financial decisions. Yet, crucially, because of how the information is presented, people could be forgiven for wrongly assuming that when sourcing products, it’s all about price.

“Price is a key consideration for many, but when it comes to insurance, the benefits and differences between each offering aren’t always as obvious as a mere difference in cost.”

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