Insurtech gains momentum in the UK

Insurance apps are gaining momentum in the UK as one in 10 adults use Android apps to manage their insurance policies.

This is according to analysis conducted by app marketing analytics platform App Radar on insurance apps available on the Google Play Store. Focusing on the motor, travel, life, and home insurance sectors, the study found a 40% increase in app downloads in 2022, amounting to 2.2 million downloads compared to 1.6 million in 2021.

As of the end of 2022, the lifetime downloads of insurance apps on the Google Play Store in the UK had reached an estimated 6.9 million. If Apple App Store downloads were taken into account, the total figure for 2022 could be as high as 13.8 million, the study noted.

App Radar’s analysis also shed light on the most popular insurance apps in terms of lifetime Google Play Store downloads. Topping the list was Hastings Direct Insurance, with 1.2 million downloads, followed closely by Cuvva with 1.1 million and Holiday Extras with 1 million. MyAviva and MyRAC also garnered significant traction with 652,000 and 648,000 downloads respectively.

Additionally, several insurance apps witnessed substantial growth in downloads from 2021 to 2022. Post Office Travel experienced an impressive increase of 256%, followed closely by Travel Mate - Cedar Tree with 249%. Holiday Extras, Dayinsure, and Rooster Car Insurance also showcased substantial growth percentages of 190%, 100%, and 91% respectively.

Further examination of the data revealed the top five apps in terms of 2022 downloads. Hastings Direct Insurance led the pack with 392,000 downloads, followed by Holiday Extras with 373,000. Admiral Insurance, MyRAC, and Cuvva rounded out the list with 246,000, 201,000, and 170,000 downloads respectively.

App Radar managing director Silvio Peruci highlighted the significant growth potential of the insurtech sector, citing reports that have estimated that the global insurtech sector will be worth almost $30 billion by 2026 from $8 billion in 2021.

“For the UK specifically, the market is ripe for growth with an estimated £50 billion potential revenue opportunity from disruption,” said Peruci.

Peruci also highlighted the need for established incumbents to adapt to the changing landscape, as insurtech startups strive to revolutionise the industry through innovative technology.

“Startups in this area are hungry to disrupt and make insurance easy for their customers with new tech,” he said. “Cuvva, for example, is the second most downloaded insurance app in the Google Play Store, according to our analysis, with DriveScore, Caura, Dayinsure and Rooster joining the race for app users.”

With the ongoing cost-of-living crisis, Peruci said insurance companies are facing intensifying competition to attract new app users, especially since consumers are used to shopping around for the best quote when it comes to their insurance policies.

“One way to retain and gain customers is to offer the best user experience and features that they need, in addition to competitive policy pricing,” he said. “As the insurtech sector continues to grow in uncertain economic times, app developers and marketers will need to undertake thorough market research to understand their customers’ needs to be able to cut through the noise.”

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