United Kingdom (UK) Insurance Aggregators Market Trends and Analysis by Line of Business, Competitor Profiles and Marketing Strategies
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United Kingdom (UK) Insurance Aggregators Market Report Overview
Aggregators, also referred to as PCWs (price comparison website) represent one of the leading channels in the UK for researching and purchasing insurance. PCWs are the third most frequently used distribution channel in the UK following the direct and broker channels for personal insurance products. Aggregators are emerging as a research tool benefitting consumers looking for the best value for their money. The core benefit of PCWs is the speed and ease with which consumers can compare quotes from a wide range of insurers, customized to meet the individual needs of each customer.
The UK insurance aggregators report explores ever-changing consumer purchasing behaviors through price comparison websites. It identifies the most influential factors for customers when selecting a policy through this channel. The report discusses the brand strategies and marketing approaches of the four leading sites. Key factors that will influence the market over the coming years are also highlighted.
|Key Lines of Business||Non-life Insurance Products and Life Insurance Products|
|Key Non-Life Insurance Products||Motor Insurance, Home Insurance, Travel Insurance, and Pet Insurance|
|Key Life Insurance Products||Income Protection Insurance, Term Assurance, and Term Assurance and Critical Illness|
|Key Companies||Compare the Market, MoneySuperMarket, Go.Compare, Confused.com, Cavendish Online, and Choozi|
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UK Insurance Aggregators Market Dynamics
PCWs are more frequently used for non-life insurance than life insurance. PCWs must reinvent themselves in order to meet growing consumer needs effectively. The new FCA pricing regulations severely limit their ability to promote switching or draw in new customers. If PCWs want to remain relevant in the future, they must develop alternative incentives for users to utilize and make purchases through their sites. Offering value-added benefits is one such strategy. Furthermore, the cost-of-living crisis is also affecting the aggregator market. As inflation is expected to remain high in 2023, insurers will have to keep premiums up as they adjust their pricing strategies to the challenging economic environment. Accompanying this, supply chain issues are leading to item shortages, meaning customers must wait longer for repairs, such as in the home and motor insurance lines.
Majorly, consumers chose a specific PCW or aggregator because they had used it before. PCWs also benefit from economies of scope, which allow businesses to operate more efficiently by providing a range of related or complementary items. Because of its infrastructure, a PCW may readily add an additional product to its offering at a reduced cost. In addition, despite the cost-of-living crisis, the proportion of consumers using a PCW as a research tool increased across all four non-life personal lines in 2022.
UK Insurance Aggregators Market Segmentation by Line of Business
The UK insurance aggregators market is segmented by products into non-life insurance and life insurance. Aggregators or PCWs are more frequently used for non-life insurance products than for life insurance products. Some of the common non-life insurance products include motor, home, travel, and pet insurance. In 2022, the percentage of respondents purchasing motor insurance was the highest.
UK Insurance Aggregators Market Analysis by Line of Business, 2022 (%)
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UK Insurance Aggregators Market – Competitive Landscape
The key competitors in the UK insurance aggregators in the non-life insurance and life insurance line of businesses are Compare the Market, MoneySuperMarket, Confused.com, Go.Compare, Cavendish Online, and Choozi among others. In 2022, Compare the Market led the non-life insurance and life insurance market. Compare the Market was able to attract most consumers within motor insurance. Also, customers are choosing to opt for Compare the Market because of its incentives and the convenience of using the website.
UK Insurance Aggregators Market Analysis by Competitors, 2022 (%)
For more insights on competitors in the UK insurance aggregators market, download a free sample report
- PCWs are the third-largest distribution channel for non-life insurance, with 24% of respondents from GlobalData’s 2022 UK Insurance Consumer Survey indicating they purchased a policy through this channel.
- PCWs rely heavily on return customers, which is one of the reasons why sites offer so many products. 59.5% of respondents indicated they chose their respective site because they had used it before.
- The proportion of consumers using PCWs as a pre-purchasing tool for research increased in 2022, but consumers who did use a PCW were less likely to purchase a policy through the site compared to previous years.
- The percentage of respondents who switched at renewal decreased for both motor and home, highlighting the effects of FCA regulation on dual pricing.
Reasons to Buy
- Discover consumer purchasing trends through price comparison websites (PCWs) in 2022.
- Determine the market shares of the four leading PCWs in various general and life insurance lines.
- See the effects of insurance market regulation on PCWs.
- Understand the effects of inflation on consumer behavior.
- Ascertain pricing differences between PCWs across a variety of life and non-life products.
- Adapt your distribution strategy to ensure that it meets customer purchasing needs and behaviors.
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Table of Contents
Table of Contents
1. Executive Summary
1.1 Market overview
1.2 Key findings
1.3 Critical success factors
2. The Aggregator Market
2.1 Aggregators are an important channel for the distribution of insurance policies
2.2 PCWs need to innovate amid FCA pricing rules
2.3 The cost-of-living crisis is affecting the aggregator market
2.4 The majority of consumers choose a PCW because they have used it before
2.5 Consumers increasingly used PCWs to conduct research across all four non-life products in 2022
2.6 Six of the seven lines saw their conversion rate decline
2.7 Motor and home insurance experienced a decrease in the number of respondents who switched
3. Aggregators by Line of Business
3.1 Non-life insurance products on PCWs
3.2 Life insurance products on PCWs
4. Competitor Profiles and Market Shares
4.1 Compare the Market is the leading PCW
4.2 Competitor profiles
5. New Competition in the Aggregator Market
5.1 Amazon launches UK insurance comparison site
5.2 Honcho’s failure demonstrates the dominance of the UK’s top four aggregators
6.1 Abbreviations and acronyms
6.4 Secondary sources
6.5 Further reading
Frequently asked questions
Which line of business dominated the UK insurance aggregators market?
Non-life insurance line of business dominated the UK insurance aggregators market.
Which type of non-life insurance held the highest percentage of the UK insurance aggregators market?
The motor insurance held the highest percentage in the UK insurance aggregators market.
What are the key types of life insurance in the UK insurance aggregators market?
The key type of life insurance in the UK insurance aggregators market income protection insurance, term assurance, and term assurance and critical illness.
Which was the leading competitor in the UK insurance aggregators market?
Compare the Market is the leading competitor in the UK insurance aggregators market.
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