The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
Compare the Market increased its share of respondents in 2019, making up over 50% of the four main lines of personal lines insurance. Confused.com and GoCompare offer the cheapest premiums for life and non-life insurance products but also spent the most on advertising in 2019. Cited by 37.0% of respondents, the leading reason for consumers choosing to purchase insurance from a price comparison site (PCW) was because they had used the site before. The increased sophistication of aggregator platforms means they now sell commercial and life insurance products, but PCWs remain heavily reliant on the four main lines of personal insurance.
This report explores ever-changing consumer purchasing behaviors via price comparison sites. It identifies what is most influential to customers when selecting a policy through this channel and reveals the brand strategies of the four leading sites. Their approaches to advertising are also highlighted, as well as the key factors that will influence the market over the coming years, including regulation and new technology.
- PCWs’ most important market, motor insurance, experienced a 7.3 percentage point (pp) decrease in the uptake of purchases. This was due to a decrease in premiums for the first three quarters of 2019.
- There was a 4.2pp uptick in home insurance purchases through a PCW, reaching 26.7% of distribution. This was due to an increase in the cost of home insurance.
- SMEs still seek advice when purchasing insurance. Yet micro and small enterprises are more likely to purchase insurance through a PCW, with both seeing a 2.1pp uptick in aggregator purchases.
- Life products on PCWs experienced the greatest decrease in sales. Income protection decreased 4.9pp and critical illness decreased by 4.1pp. This illustrates that consumers still prefer to purchase life insurance in connection with their mortgage or through the advisory channel.
Reasons To Buy
- Adapt your distribution strategy to ensure it still meets customer purchasing needs and behaviors.
- Ensure you remain competitive as new innovations revolutionize the consumer purchasing journey.
- Be informed of how new technologies could impact the aggregator channel over the next few years.
- Learn about the differences in pricing between the top four comparison sites.