GlobalData’s survey has found that while traditional insurers remain the main distribution channel for UK car insurance, consumers are also using a range of digital and automotive-related alternative channels. As insurers explore integrated partnerships and digital distribution models, understanding how customers currently access coverage remains critical to evaluating potential future changes in distribution strategy.

GlobalData’s 2024 Emerging Trends Insurance Consumer Survey found that 60.2% of UK car insurance customers bought cover from traditional insurance companies/insurance agents and 16.6% from digital-only insurers; demonstrating the presence of application-based and platform-based providers in the market. Automotive-related distribution also features prominently, with 8.9% buying insurance through dealers and 8.2% through automakers, indicating that some consumers already obtain insurance through vehicle-related touchpoints. The smallest proportions purchased cover through repair centers (2.4%) or other channels (3.6%), while traditional insurers and brokers continue to represent the majority of policies.

Recent industry developments reflect insurers’ interest in these alternative distribution routes. Cuvva and Toyota have launched a short-term car insurance proposition that offers temporary digital access cover to drivers. The partnership combines Cuvva’s app-based insurance platform with Toyota Insurance’s auto distribution capabilities; illustrating how integrated insurance models can more closely integrate coverage across vehicle ownership and use journeys.

For insurers, the presence of digital-only suppliers and automotive distribution channels alongside traditional insurers highlights the importance of maintaining flexible distribution strategies. Partnerships with manufacturers, distributors and digital platforms can provide additional routes to market, especially for short-term or usage-based products. At the same time, traditional insurers maintain a dominant position, suggesting that integrated and digital models now complement, rather than replace, distribution channels.

“Car dealers and manufacturers emerge as alternative channels for UK motor cover” was originally created and published by International life insurancea trademark owned by GlobalData.

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