Consumers seeking features over price

Personal lines customers are putting more emphasis on product features, according to a survey.

In a UK-wide poll of 60,000 consumers released last week by GfK NOP, 19% of respondents said they would choose a home insurance provider based on features, compared with 14% in 2002. A further 16% said they would base the decision on price and features, versus 11% in 2002.

The survey also found that 43% would look at price alone, down 3% from 2002.

Andy Thwaites, director of insight for GfK Financial, a subsidiary of GfK NOP, said: “Price will always be important, but more people are now looking at the small print rather than just the price. If I were a provider, I’d be pushing other areas as well, because people don’t tend to switch over a pound or two.”

An NU spokesman said: “A lot of things have happened recently that have caused people to realise there’s more to insurance than price.

“Something that made people look more at cover was last summer’s floods, when lots of people were caught without contents insurance.”

Aggregators have also been placing more emphasis on which products are best value rather than cheapest.

The survey showed a similar trend for motor insurance. In choosing a motor cover provider, 18% said they would look for features, compared with 13% in 2002.