UK Insurance Aggregators 2016

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Customers are loyal to their aggregator but not their insurance provider. Policy price is the key determinant for customers purchasing through an aggregator. Aggregators are building a connection with customers through advertising.

Scope

Verdict Financial’s “UK Insurance Aggregators 2016” explores consumer purchasing behavior through price comparison sites and how it is changing. It discovers what is most influential to customers when selecting a policy through the channel and reveals the brand strategies of the four leading sites. New regulation is highlighted, as well as key factors that will influence the aggregator market over the next few years.

Reasons to Buy

Adapt your distribution strategy to ensure it still meets customer purchasing behaviors.Ensure you remain competitive as new innovations revolutionize the consumer purchasing journey.

Be prepared for how regulation will impact the aggregator channel over the next few years.

Moneysupermarket.com
Confused.com
Gocompare.com
Comparethemarket.com
Travelsupermarket.com
Money Saving Expert
Facebook
BGL Group
Amazon
UK Cinema Association
EE
LesFurets.com
Beagle Street
Hoyhoy.nl
esure
Barclays
HSBC
Lloyds
RBS
Santander
weholiday.co.u

Table of Contents

EXECUTIVE SUMMARY

Aggregators are going through a transitional period

Key findings

Critical success factors

THE AGGREGATOR MARKET

Introduction

Aggregators are losing relevance for customers

Online research is moving away from aggregator sites

Fewer customers are using aggregators to purchase insurance

Conversion rates remain fairly steady year-on-year

Fewer customers are looking to switch provider

Customers are loyal to their aggregator but not their insurance provider

Aggregator selection is based on site familiarity, price, and search engine rank

Policy price is the key determinant for customers purchasing through an aggregator

Over 90% of customers don't look past the top 10 results of a quote

BRAND STRATEGY OF THE BIG FOUR

The Big Four are becoming the Big Two

Moneysupermarket.com and Comparethemarket.com dominate the insurance market

Big Four web traffic is increasing

Aggregators are building a connection with customers through advertising

The impact of aggregator advertising is felt more positively than negatively by consumers

Moneysupermarket.com is investing in technology to upgrade its existing service

Insurance generates over half of the Moneysupermarket.com group's revenues

Moneysupermarket.com's three-year technology-focused investment program aims to transform the customer journey on mobile devices

Moneysupermarket.com favors television advertising

Moneysupermarket.com finds its niche after #EpicStrut goes viral

Comparethemarket.com relies on marketing campaigns to keep customers engaged and loyal

Comparethemarket.com was the first of the Big Four to introduce an iconic character to market its brand

Character merchandise promotes customer loyalty and affiliation

Comparethemarket.com launches two-for-one cinema tickets with Meerkat Movies

Comparethemarket.com collaborates with the University of Sheffield to explore customer behavior

The BGL Group aims to maintain the position of Comparethemarket.com while using its marketing expertise to expand other brands

Comparethemarket.com's advertising expenditure has fallen significantly

Gocompare.com aims to make its marketing more effective, reduce costs, and expand its products lines

Gocompare.com's acquisition by esure will reinvigorate the brand

Gocompare.com aims to improve efficiency by spending less on advertising

The return of Gio Compario aims to recover brand awareness

Gocompare.com is to expand product opportunities outside of home and motor

Admiral is prioritizing expansion of its new US aggregator over Confused.com

Confused.com is trying to recover revenue losses incurred by building brand awareness like Comparethemarket.com

Confused.com follows in the footsteps of Comparethemarket.com with Brian the Robot

Social media encourages customers to interact with Brian

THE MARKET GOING FORWARD

Wide MFN contract clauses have been banned within motor insurance to promote competition

New regulations for add-on products will increase transparency for customers

Insurers will have to provide more disclosure at the point of renewal

Customers will be more aware of where their money goes

Value will become a greater focus for aggregators

Video and audio will be used to read policy terms

Aggregators will develop their mobile channels to keep up with consumer habits

APPENDIX

Abbreviations and acronyms

Definitions

Home insurance

Pet insurance

Methodology

Primary sources

Secondary sources

Bibliography

Further reading

About Verdict Financial

Disclaimer

Table

Table 1: Most customers switch provider at the point of renewal

Table 2: Fewer customers are switching provider, with more opting for automatic renewal

Table 3: Price was influential to customers when selecting an aggregator

Table 4: Moneysupermarket.com is experiencing year-on-year growth

Table 5: 80% of Gocompare.com's income is generated by home and motor insurance

Figures

Figure 1: The use of aggregators to research insurance products is decreasing

Figure 2: Fewer customers are purchasing insurance products through aggregators

Figure 3: The conversion rate is highest for customers purchasing travel insurance

Figure 4: Customers remain loyal to an aggregator they have used before

Figure 5: Price is the most influential factor when selecting a policy

Figure 6: Customers typically select one of the cheapest policies available

Figure 7: Moneysupermarket.com and Comparethemarket.com are the leading aggregators

Figure 8: Moneysupermarket.com has the most UK web traffic of the Big Four

Figure 9: Total marketing expenditure varies for the Big Four

Figure 10: Marketing campaigns are more effective for the Big Four than for smaller sites

Figure 11: Television is Moneysupermarket.com's preferred advertising medium

Figure 12: Comparethemarket.com has significantly reduced its marketing spend

Figure 13: Gocompare.com reduced its advertising spend in 2015

Figure 14: Confused.com has increased its advertising spend in 2015

Frequently asked questions

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