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February 10, 2021updated 20 Jul 2022 7:25am

Vitality looks to enter the UK motor insurance market by leveraging its unique style of policies

By GlobalData Financial

The UK private motor insurance market is arguably one of the most competitive in personal lines insurance, and with consumers being highly responsive to changes in premiums, new product development is often limited. However, Vitality – a provider more accustomed to shaking up the life insurance market – has announced its intentions to partner with Covéa and launch a new motor insurance product in spring 2021.

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Gain valuable insight on the Motor Insurance industry outlook for Asia Pacific

Asia-Pacific was the fastest-growing region globally during the review period (2016-2020), recording growth at a CAGR of 2.7%. China was the market leader, accounting for 52.9% of the region’s motor insurance premiums in 2020. To help you make the most of this significant growth, GlobalData’s has put together a comprehensive overview of the Asia Pacific motor insurance industry, including market sizing and forecasts. Read ‘Motor Insurance Industry Outlook in Asia Pacific’ for:
  • Analysis of leading insurers in the region
  • Details on regulatory requirements, including licensing rules, capital requirements, taxation regimes, and ownership quotas
  • Analysis of the impact of COVID-19 on the industry
  • Insight into key trends, technology developments, and potential disruptors in the motor insurance industry
  • Recent M&A activity in the motor insurance industry
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by GlobalData
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According to GlobalData’s UK Top 20 General Insurance Competitor Analytics, Covéa was the 10th largest private motor insurance provider in 2019, with gross written premiums in excess of £382m. Clearly, the partnership will allow Vitality the opportunity to become instantly competitive, benefiting from both the knowledge and reputation held by Covéa in the highly competitive market.

The new product, called VitalityCar, is expected to be based on Vitality’s Shared-Value Insurance Model, which uses incentives to reward customers for positive behaviors. Given how the model has helped to set the company apart from its competition in the life and health insurance markets, it would not be unreasonable to expect similar levels of success. The launch will also be aided to an extent by the Financial Conduct Authority’s review into pricing reforms. These are expected to shake up the market from the current status quo and allow for innovate new products such as the upcoming VitalityCar to become more competitive as consumers become less price-orientated and products that offer more than the traditional policies can clearly illustrate their added value.

The COVID-19 pandemic may also benefit the launch of VitalityCar. Many incumbents have had to reduce their investments on new product development, meaning that – in the short term – competition from similar style policies should be relatively low, allowing for Vitality to become established in the highly competitive private motor insurance market.

Free Report
img

Gain valuable insight on the Motor Insurance industry outlook for Asia Pacific

Asia-Pacific was the fastest-growing region globally during the review period (2016-2020), recording growth at a CAGR of 2.7%. China was the market leader, accounting for 52.9% of the region’s motor insurance premiums in 2020. To help you make the most of this significant growth, GlobalData’s has put together a comprehensive overview of the Asia Pacific motor insurance industry, including market sizing and forecasts. Read ‘Motor Insurance Industry Outlook in Asia Pacific’ for:
  • Analysis of leading insurers in the region
  • Details on regulatory requirements, including licensing rules, capital requirements, taxation regimes, and ownership quotas
  • Analysis of the impact of COVID-19 on the industry
  • Insight into key trends, technology developments, and potential disruptors in the motor insurance industry
  • Recent M&A activity in the motor insurance industry
Improve your business strategy with our extensive report. Download it for free, now.
by GlobalData
Enter your details here to receive your free Report.

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