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Pestle Analysis of Direct Line
Summary: Some of these factors had a good impact to the travel, car and home insurance in the UK. The governments' travelers' awareness campaign has brought awareness to the public about the dangers of traveling uninsured highlighting the expensive costs of medical treatments abroad.
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PESTLE ANALYSIS (PAST TO PRESENT)
POLITICAL AND LEGAL FACTORS
Some of these factors had a good impact to the travel, car and home insurance in the UK. The governments' travelers' awareness campaign has brought awareness to the public about the dangers of traveling uninsured highlighting the expensive costs of medical treatments abroad. The travel industry has supported and benefited from this as it increased their sales prospects.
The minimum car insurance implemented by the government is third party cover. This has a very good impact on the car insurance industry as this guarantees a sale on every car in the UK and because "76% of adults in the UK have a full driving license; all of them are potential customers. (Birtles, 2002)
"Legal & General data revealed that most critical illness cover claims are made by people under 40." (Speedy, 2004) This has been good news for age dedicated home and health care insurance companies as less cover claims means less liabilities. However, according to the Bank of England, the rising tax is slowing down the consumer spending. (Thornton, 2005) This has badly affected the whole of the insurance industry as people had less money to spend on higher premiums or packages.
TECHNOLOGICAL FACTORS
The success of the internet and an integrated information and communications technolog ...