2011 UK Insurance Aggregators

Dallas, TX -- (SBWire) -- 01/31/2012 --This market research report answers questions like : Who are the main competitors in the aggregator space? How has the aggregator market grown in the recent years? What are the new trends and new strategies in the aggregator arena? and more.

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OVERVIEW
Catalyst
Summary

EXECUTIVE SUMMARY
Aggregator popularity continues to grow
Comparison sites offer a simple and efficient means of getting a cheap insurance quote
Aggregators are reshaping insurance distribution
The growth of aggregators is forcing distributors to react to new consumer purchasing habits
Many quotes listed on aggregators are via brokers
Regulations and fraud are challenges for aggregator sites
The Office of Fair Trading and the Financial Services Authority have examined the aggregator market
Advertising spending and strategies determine the shape of the market
Sites are focusing on increasing traffic quality and volume
Television is the most popular advertising medium
Consumers across all income groups use aggregators
A third of people looked at more than one site before purchasing insurance
Comparethemarket.com has continued to exploit its strong brand
The aggregator increased advertising spend
The future for aggregators is positive
Increasing costs and familiarity with technology will drive visits and conversions
Competition and consumer preference will define the future of the aggregator space
Competitive pressures will be the main obstacle for growth over the next five years
Incentives will be used to poach consumers

MARKET CONTEXT
Introduction
Aggregator popularity continues to grow
Comparison sites offer a simple and efficient means of getting a cheap insurance quote
Aggregators are estimated to be responsible for up to 6.4 million private motor policies a year
The number of home insurance policies instigated through aggregators is growing marginally
Pet insurance purchases on aggregator sites are limited and less price-driven
Private medical insurance is now listed on aggregators
Travel insurance is becoming increasingly commoditized
Aggregators are now a one-stop-shop for insurance products
Aggregators are looking for growth in the commercial sector
Price comparison sites are targeting small and medium-sized enterprises
Towergate is the sole provider for Confused.com and Comparethemarket.com
Simply Business supports Moneysupermarket.com and Gocompare.com
Aggregators are reshaping insurance distribution
The growth of aggregators is forcing distributors to react to new consumer purchasing habits
Many quotes listed on aggregators are via brokers
Insurers are able to distribute widely and efficiently on aggregator sites
Prices and incentives differ between sites
Commission is the main source of income for price comparison sites
Aggregators are seeing more white label products
Aggregators facilitate new entrants
Price and brand drive consumer behavior
Consumer behavior is key to shaping future strategies
Consumer sites are educating consumers on how best to use aggregators
Consumers base decisions on price, add-ons, and brand awareness
Regulations and fraud are challenges for aggregator sites
The Office of Fair Trading and the Financial Services Authority have examined the aggregator market
Aggregators are also being called on to ensure that consumers are eligible for policies
The OFT has carried out a broad review of aggregators
The British Insurance Brokers Association has called for aggregators to be regulated as more than just introducers
Aggregators, brokers, and insurers are working together to combat application fraud
Privacy and service are being used as differentials between sites
Advertising spending and strategies determine the shape of the market
Sites are focusing on increasing traffic quality and volume
Confused.com spent the most during the first half of 2011
Television is the most popular advertising medium
Radio accounts for a small proportion of media spend
Increasing conversion rates drive changes in strategy
Price comparison sites look to increase conversion as competition increases
Brand-based interaction and incentives are being used
Product-specific rewards emphasize some products over others
Cash- or voucher-based incentives are a response to the growth of cashback sites
Cashback sites give consumers immediate returns on their purchases

CUSTOMER FOCUS
Introduction
Aggregator awareness and use is increasing
96.2% of people are aware of aggregators
Many consumers use aggregators just for research rather than purchasing
Consumers who do not see substantial savings on policies are also staying away from aggregators
Past experience of price comparison sites is a key determinant when choosing sites
Income affects reasons for choosing aggregators
Age impacts on how visitors use aggregators
Consumers across all income groups use aggregators
A third of people looked at more than one site before purchasing insurance
Price sensitivity correlates strongly with social group
Consumers in social group E are the most price sensitive
Consumers in the 55–65 age bracket are least price sensitive
Features and brand are also important for those over 55
Motor and combined insurance are the most popular aggregator introductions
Car insurance is the policy most likely to be arranged through an aggregator
The motor aggregator market is highly competitive
There is little difference in market share between the four most popular aggregators for motor policy sales
Younger consumers prefer to buy motor insurance through aggregators
Buildings and contents insurance is less likely to be bought through aggregators
Only 12.1% of consumers buy buildings and contents insurance online
Moneysupermarket.com is the most popular comparison site for combined buildings and contents insurance
Household income affects how people buy home cover
Poorer consumers are less likely to purchase buildings and contents policies online
Consumers’ future intentions depend on a range of factors
Past experience and price will determine aggregator choice
The richest consumers are most likely to use the same aggregator
The youngest consumers are least likely to check premium rates

COMPETITIVE DYNAMICS
Introduction
Comparethemarket.com has continued to exploit its strong brand
The aggregator increased advertising spend
The meerkat brand remains strong
Television is responsible for the majority of Comparethemarket.com’s media spend
The number of visits to Comparethemarket.com has steadily increased
Gocompare.com continues to increase its media spend
A successful advertising campaign has buoyed the aggregator
Gocompare.com is using social media to engage with consumers
Gocompare.com’s notable audio hook lends itself to radio advertising
Gocompare.com site visits fell at the end of 2011
Confused.com is the largest advertising spender
Following a relaunch Confused.com has strengthened its marketing
Confused.com reduced its outdoor spend in 2011
Confused.com saw a sharp increase in visits towards the end of 2011
Moneysupermarket.com increased visits in 2010
Switching marketing campaigns has paid off for the fourth largest advertising spender
Moneysupermarket.com has the widest spread of media spend
Moneysupermarket.com’s share of online visits has remained stable
Other aggregators are looking to gain market share
Tescocompare.com has reduced advertising spend
Covea has delayed the launch of its aggregator
Google’s Beatthatquote.com has made few immediate changes

FUTURE DECODED
The future for aggregators is positive
Increasing costs and familiarity with technology will drive visits and conversions
Competition and consumer preference will define the future of the aggregator space
Price sensitivity will remain the most important factor when choosing policies
Competitive pressures will be the main obstacle for growth over the next five years
Incentives will be used to poach consumers
Market entry will be difficult
Impartiality remains important for comparison sites
Non-traditional channels offer opportunities for growth
Technology and social media will help to engage consumers
Aggregators must harness consumer behavior or lose market share
Motor insurance will see strong aggregator growth as premiums increase
Aggregator-instigated home insurance sales will increase, albeit at a slower rate

APPENDIX
Sources
Definitions
Methodology
Datamonitor’s General Insurance Consumer Survey 2011
Further reading
Ask the analyst
Disclaimer

List of Tables

Table: Estimated aggregator-instigated motor insurance sales (%), 2007e–11e
Table: Estimated aggregator-instigated private motor insurance sales, 2009e–11e
Table: Estimated aggregator-instigated home insurance sales (%), 2007e–11e
Table: Products listed on the four main price comparison sites, 2011
Table: Proportion of distributors on aggregators’ panels (%)
Table: Examples of quotes for home insurance across different price comparison sites, with the use of the same criteria (£), 2011
Table: Aggregator purchasing preferences (percentage of responses), 2011
Table: Aggregator marketing spend by media (£), 2007–H1 2011
Table: Aggregator marketing spend by media (£), H1 2011
Table: Aggregator use by household income, (percentage of responses), 2011
Table: Consumer reasons for aggregator choice (percentage of responses), 2011
Table: Reasons for aggregator choice by household income (percentage of responses), 2011
Table: Reasons for aggregator choice by age (percentage of responses), 2011
Table: Aggregator use for motor insurance by income (percentage of responses), 2011
Table: Consumer product choice by social group (percentage of responses), 2011
Table: Consumer product choice by age group (percentage of respondents), 2011
Table: Introduction method by insurance product (percentage of respondents), 2011
Table: Aggregator use by age (percentage of responses), 2011
Table: Buildings and contents insurance aggregator use by age (percentage of responses), 2011
Table: Buildings and contents insurance aggregator use by household income (percentage of respondents), 2011
Table: Aggregator loyalty and use by income (percentage of responses), 2011
Table: Aggregator loyalty and use by age group (percentage of respondents), 2011
Table: Comparethemarket.com’s advertising spend by media channel, H1 2008–H1 2011
Table: Gocompare.com’s advertising spend by media channel, H1 2008–H1 2011
Table: Confused.com’s advertising spend by media channel, H1 2008–H1 2011
Table: Moneysupermarket.com’s advertising spend by media channel, H1 2008–H1 2011
Table: Forecast of aggregator-instigated private motor insurance sales (%), 2007e–13f
Table: Forecast of aggregator-instigated home insurance sales (%), 2007e–12f
Table: Key variables affecting the growth of the aggregator channel, 2011–15f

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