Within the quickly evolving insurance coverage business, the power to foretell market, model and competitor efficiency has by no means been extra essential. The not too long ago revealed half-year outcomes of Aviva underscore simply how highly effective knowledge insights will be in forecasting competitor outcomes, guiding strategic selections, and finally driving success.
By leveraging complete knowledge evaluation, our Insurance coverage Insights supervisor Max Thompson surfaced key tendencies and efficiency indicators, offering a transparent image of Aviva’s sturdy market positioning lengthy earlier than the outcomes had been formally introduced, as revealed in Insurance coverage Edge and Insurance coverage Enterprise.
Predicting sturdy 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 via worth comparability web sites.
“Our knowledge clearly confirmed sturdy efficiency from Aviva in new enterprise quote competitiveness, with no less than one group model showing the highest 5 outcomes on Worth 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 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 diminished aggressive share on PCWs. Nonetheless, sturdy worth cuts in April and Might allowed share to return to 2023 ranges in Q2. This meant Aviva Zero quoted premiums in June had been decrease than firstly of 2024, in contrast with sturdy 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 properly. Not solely is Aviva attracting new prospects and driving development, however they’re profitable at retention too.
Our Insurance coverage Behaviour Tracker exhibits that for each Motor and House, prospects 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 better proportion had been retained.
Moreover, fewer Aviva House prospects 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 course of journey. And the info factors to an equally profitable H2, with new merchandise doubtlessly resulting in better competitiveness,” suggests Max.
Might noticed the launch of a number of new tiers for the QuoteMeHappy.com motor product, first on Evaluate the Market with MoneySupermarket following in July. This has introduced the group to 11 variations of motor manufacturers, merchandise and tiers reside on PCWs at the moment, the joint largest out there. Showing on almost 30 additional merchandise via partnerships and brokers, Aviva has an unmatched footprint with which to draw Motor new enterprise.
July noticed an growth of Aviva’s House insurance coverage partnership with Lemonade. Already a market main model for contents-only merchandise, a buildings and contents mixed product was added to Evaluate the Market. Whereas competitiveness is at the moment restricted by low quotability, Client Intelligence expects this to drive additional House competitiveness via the second half of 2024.