Consumer Intelligence analysis reveals claims experience as key driver in landlord insurance switching
While price is a primary reason for landlords to shop around for insurance, a negative claims experience is now an equally significant driver for switching providers, a new analysis from insight partner Consumer Intelligence has revealed. The findings underscore a market far more complex than a simple price war, where an insurer’s service and proposition are critical to retaining business.
The research found that while 26% of landlords who switched insurer did so for the cheapest policy available, an identical 26% were driven to switch by a bad claims experience with their previous provider. This highlights a major blind spot for insurers who view the market solely through the lens of price.
This analysis is released today alongside the launch of Consumer Intelligence’s new service, which encourages insurers to see the ‘Market in Full Colour ’- a richer, multi-dimensional perspective essential for navigating the current landscape.
“Focusing only on price gives you a black-and-white picture of the market, but the reality is in full colour,” said Ian Hughes, chief executive of Consumer Intelligence. “Our research proves that landlords are sophisticated buyers. They weigh the policy, the brand, and their personal experiences right alongside the premium. A single bad claim can completely erase a long-term price advantage. That’s why we’re challenging the industry to look beyond the price line and see the whole picture.”
The Consumer Intelligence data paints this richer picture:
· The traditional “black-and-white” view shows that 75% of landlords actively shop around, and 55% were quoted a higher price at their last renewal, confirming price sensitivity is high.
· However, a “full-colour” perspective reveals more profound truths. Over half (53%) of landlords ultimately switch, driven by a blend of factors. 27% of those who switched found a policy with better coverage for a lower price, demonstrating a complex trade-off between value and cost.
The new Landlord Insurance Market Benchmarking service from Consumer Intelligence powers these insights. The service is designed to help insurers see the ‘Market in Full Colour’ by integrating layers of insight, including customer behaviour, proposition value, and brand experience, with competitive price tracking. It provides a unified view to help insurers understand not just what the market prices are, but why customers are making the decisions they do.
“In the post-GIPP world, understanding these deeper drivers of value is the key to sustainable growth,” continued Hughes. “Our new service gives insurers the clarity and context to make smarter decisions, build loyalty, and succeed in a market that demands more than just a competitive price.”
About Consumer Intelligence Consumer Intelligence is the trusted insight partner for the financial services industry, providing the data and perspectives needed to understand customers and build a competitive advantage. Our unique ‘Market in Full Colour’ approach helps clients navigate complexity, de-risk decisions, and drive sustainable growth by revealing the complete picture of market and consumer dynamics.