Challenger Bank Monzo has entered the British home insurance market to offer content coverage, which should be popular given the preference of British consumers for digital channels. Monzo has recognized the low penetration rate for content insurance specifically, and GlobalData data show that young consumers and tenants have an important opportunity for insurers contained only.
GlobalData 2024 insurance consumers survey revealed that only 44.3% of tenants have a home insurance policy – this group only requires content coverage. This is compared to a penetration rate of 90.2% for owners (with a mortgage). In addition, only 38.4% of adults under the age of 30 who have residential insurance coverage. It is therefore a huge market opportunity. Our survey also reveals that more than half (61.0%) of the under 30s buy online home insurance (either via a laptop, a smartphone or an application), therefore a bank specializing in the digital channel should be well placed to reach this group of consumers.
Young adults and tenants have always been a difficult group to reach for insurers. Monzo offers simple policies via its application with a quick registration process, which should appeal to young customers. The process involves answering only five questions to receive a quote. The penetration rate for tenants will always be well below the owners due to the need to have built -in buildings, but the difference is currently large and makes people vulnerable. Monzo himself estimated that tenants could have around £ 12,000 ($ 15,600) of unprotected personal effects.
Monzo will be the brand behind politics, although it is taken out by Chubb. This could arouse an increase in the bancassurance canal, which has remained static in the United Kingdom in recent years. 13.7% of consumers bought home insurance via banks in 2024, which represents an increase of 11.9% in 2023 but below 15.0% in 2022. This suggests that there is a solid clientele for bancassurance due to the account complexes or the confidence of the brand, but there is little significant growth in the channel. Overall, household customers are open to the use of the banking channel, and there is an important opportunity for insurers due to the low penetration rate of the policies contained only. Monzo targeting this field with digital policies therefore seems to be a judicious decision.
“Monzo enters the British domestic market aimed at capitalizing on consumer preference for digital channels” was initially created and published by Life Insurance InternationalA brand belonging to GlobalData.
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