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June 25, 2021

Household insurtech prioritises affordability and flexibility to reach younger generation

By GlobalData Financial

Insurtech Urban Jungle is launching household insurtech targeted at younger homeowners. GlobalData statistics show this is a market ripe for disruption.

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What will drive the cyber insurance market over the next 3 years?

The global cyber insurance market was worth $7bn in gross written premiums (GWP) in 2020. It will reach $20.6bn by 2025, as the market will continue to thrive post-COVID-19. Our recent report on Cyber Insurance reveals that cybersecurity was thrust into the spotlight in 2020 as COVID-19 forced businesses to digitize their processes and adopt remote working practices overnight. The pandemic also presented an opportunity for cybercriminals to exploit global panic, with a surge in cyberattacks occurring in 2020. The need for cyber insurance is apparent, but the market is not as easy to navigate as it once was. Use our report to guide and help you to:
  • Benchmark yourself against the rest of the market.
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  • Prepare for how regulation will impact cyber insurance over the next few years.
Download the full report to understand what to expect and how to align your business for success.
by GlobalData
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GlobalData’s 2020 UK Insurance Consumer Survey found that 45.8% of respondents 30 years old and younger have no form of home insurance. This represents a significant difference compared to overall market uptake, which stands at 76.8%. The same survey also found that adults aged 18–30 are particularly likely to purchase home insurance through a price comparison site (PCW). The proportion of adults aged 30 and under purchasing through PCWs is 35.4%, compared to 24.8% across all respondents. This indicates they are driven heavily by value and look to find as cheap a policy as possible.

household insurtech

Source: GlobalData’s 2020 UK Insurance Consumer Survey

 

Urban Jungle’s new policy, launched with digital insurer Wakam, prioritises value but also offers other benefits such as being able to pay monthly and stop coverage at any time. This should suit the 18–30 age group perfectly. Paying premiums monthly gives consumers a much more manageable fee to pay and leaves them less committed to the product, as they can switch or cancel anytime. This is also likely to benefit renters whose living situation can change more quickly, as Urban Jungle allows consumers to switch seamlessly from its renters’ policy to this new product aimed at young homeowners.

Insurers are always searching for successful ways to bring younger generations into the insurance market. The growth of Generation Rent has made this harder in recent years. Our data highlighting that over half of individuals aged 18 to 30 do not have home insurance shows insurers have a way to go, but also suggests the market is ripe for disruption and growth. Household insurtech could be the key.

Young homeowners often have stretched budgets, meaning manageable monthly payments should prove popular. The key will be to offer cheap, flexible, and digital policies, which is what Urban Jungle appears to be doing with this new product.

Free Report
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What will drive the cyber insurance market over the next 3 years?

The global cyber insurance market was worth $7bn in gross written premiums (GWP) in 2020. It will reach $20.6bn by 2025, as the market will continue to thrive post-COVID-19. Our recent report on Cyber Insurance reveals that cybersecurity was thrust into the spotlight in 2020 as COVID-19 forced businesses to digitize their processes and adopt remote working practices overnight. The pandemic also presented an opportunity for cybercriminals to exploit global panic, with a surge in cyberattacks occurring in 2020. The need for cyber insurance is apparent, but the market is not as easy to navigate as it once was. Use our report to guide and help you to:
  • Benchmark yourself against the rest of the market.
  • Ensure you remain competitive as new innovations and insurance models begin to enter the fray.
  • Prepare for how regulation will impact cyber insurance over the next few years.
Download the full report to understand what to expect and how to align your business for success.
by GlobalData
Enter your details here to receive your free Report.

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