Engine for Growth: The impact of add-ons on motor insurance sales
Motor insurers face a conundrum. Technological advances, rising taxes, and an increase in personal injury claims have persistently pushed up firms’ costs over the last decade, making it ever harder to eke out a profit. But the traditional solution of increasing premiums to meet these costs is running out of road. Motor insurers must find other ways to cover their costs, while keeping hold of existing customers and appealing to new ones. Add-ons could be one solution to this challenge. Our research explores the impact of add-ons on motor insurance sales and make recommendations to providers on the most effective strategy for selling add-ons, and to regulators on how to ensure the consumer is getting a good deal.