Its Instalments in 2025 – The Real Cost of Paying Monthly highlights how TIC is the measure customers see on price comparison websites and how quotes are ranked as well as how regulators assess fairness under Consumer Duty. Currently more than 40% of insurance customers pay monthly for cover and the number is continuing to rise meaning that TIC is the benchmark that matters most, Consumer Intelligence says.
It has developed the Consumer Intelligence TIC Quartile Model as a simple, structured way for home and motor insurers to understand their premium finance market position based on four quartiles. Analysis shows providers in Q1 charge the lowest TIC and are the most competitive while those in Q4 charge the highest TIC and are the least competitive or least transparent.
Key criteria include deposit sizes, number of monthly payments and the price difference for customers paying monthly and annually. Data shows most major retail banks are in Q1 for home insurance offering 0% while intermediary driven brands tend to be in Q3 or Q4. Providers in Q3 and Q4 are meaningfully higher than a significant portion of the market.
In motor insurance Q1 ranges from 0% to 8.1% with Q2 ranging from 8.2% to 10.4% and Q3 ranging from 10.5% to 12% and Q4 from 12.2% to 20%. For home Q1 is 0% to 4.2% while Q2 is 5.7% to 8.6% with Q3 running from 8.8% to 11.2% and Q4 from 11.4% to 23.1%. Zero per cent offers are virtually non-existent in motor while retail banks and white label partners tend to offer 0% in home. Providers in Q1 and Q2 in home are under intense competitive pressure.
Younger drivers under 35 tend to face higher TICs as their premiums are higher and they have lower credit scores generally. Older homeowners tend to have lower TICs and are less tolerant of opaque pricing. Consumer Intelligence’s insights are based on thousands of live PCW quotes, extensive customer behaviour data, and years of hands-on work helping insurers improve pricing strategy, competitiveness, and compliance.
Ian Hughes, CEO of Consumer Intelligence, said: "Premium finance is a central test of how insurers think about competitiveness, and risk. When 40% of your customers pay monthly, if you don’t measure TIC, you’re not managing your risk, visibility or growth. This is not about who is good or bad. It is about knowing your position, understanding your strategy, and making informed decisions. Consumer Intelligence has been tracking these trends, behaviours, and pricing strategies across the market in real time. Its data, insight, and benchmarking provide a unique lens on the evolving premium finance landscape — one that helps insurers stay compliant, competitive, and trusted. It provides detailed TIC benchmarking, commercial insight, and compliance-ready frameworks tailored to brands.
|
