2013-01-15 13:08:42 - New Financial Services research report from Datamonitor is now available from Fast Market Research

Aggregators have built a huge influence in personal insurance, particularly within the car insurance market. However growth here has plateaued and similar volumes in other lines have not been experienced. This report analyzes the direction this maturing channel is expected to take and highlights the impact any shift will have on insurers in distribution strategies and approach to aggregators.

Scope

* Gather insight into the brands that are finding success through the aggregator channel, by line, and why
* Inform your distribution strategy with an understanding of consumer behavior in the use of comparison sites.
* Aid your scenario modeling and discover opportunities with a forecast of the future shape of the aggregator channel.


Full Report Details at
- www.fastmr.com/prod/531041_uk_insurance_aggregators_2012.aspx


Report Highlights

Placing

in the headline spot on an aggregator quote return is beneficial but not essential for insurers to attract business, with 30% of consumers across all personal lines selecting the cheapest policy option on the page. However, with a further 58% selecting a policy within the top five cheapest quotes returned, quote ranking is critical.

Private motor insurance is the primary market for insurance aggregators and the channel is currently estimated to account for 56% of new business This is now a mature market for price comparison sites and growth in distribution share is expected to increase no more than 1-2% per annum for the next few years with a cap in growth expected in 2014-15.

A notable characteristic of aggregator-led travel insurance business is a particularly high conversion rate seen by comparison sites, making further investment in this space more likely. With Moneysupermarket's well-developed position in the market, other aggregators face a tough job in establishing a challenge.

Reasons to Get this Report

* What will a maturing aggregator space mean for both insurers and comparison site business models?
* Which price comparison sites are performing the best, and spending the least in marketing, in attracting business across each line?
* Where do the key opportunities lie in the aggregator channel and what challenges are facing growth in non-motor markets?
* How has your brand performed on price comparison sites and, with consumer insight, how can this be improved?

Partial Table of Contents:

OVERVIEW

* Catalyst
* Summary

EXECUTIVE SUMMARY

* Price comparison sites have changed the rules of the game in personal insurance

* Aggregators have enjoyed a dramatic rise in influence, with insurers now required to master this "science
* Success for providers on aggregators increasingly requires operational agility and a high level of scrutiny

* The aggregator space is maturing, shifting from a "growth" to a "share-stealing" market

* Double-digit revenue growth in previous years is expected to plateau
* Aggregator profits were healthy in 2011 but are expected to be squeezed as growth slows
* The impact of Google's entry into the price comparison site market has, for now, been minimal

* The influence of aggregators varies within different lines

* Aggregators account for 56% of new car insurance business
* A greater focus on home insurance comparison by aggregators is expected
* Travel insurance comparison has delivered good conversion rates but the market offers challenges
* Commercial insurance on aggregators is limited in scope to the smallest SME business

* Aggregators' role in fighting fraud is critical, but effective collaboration is difficult to achieve

* Appetite for collaboration between insurers and aggregators on fighting fraud is questionable

* More than three quarters of motor insurance policy holders researched price on aggregators

* A significant number of insurance consumers use aggregators to benchmark prices ahead of purchase
* A far lower level of consumers finalize a purchase via aggregators than those using the sites for research

* Consumers base product selection on price, features, and brand

* Price remains the top priority for consumers, although many are unclear on identifying a single motivation
* While most consumers do not select the top quote on the page, placing in the top five is critical for insurers

* Admiral was the most selected car insurance brand on aggregators, largely through achieving the top quote position

* Admiral was the most popular car insurance brand on comparison sites

* Comparethemarket.com stood out as the site of choice across personal lines

* Comparethemarket.com was the most visited aggregator for purchasing motor insurance
* Travelsupermarket.com is dominant in the travel insurance comparison market

* Aggregator marketing expenditure has spiraled in recent years

* The "big four" aggregators topped GBP100m in insurance and brand building marketing in 2011

* The telematics market promises an opportunity for aggregators to differentiate

* Still in its infancy, the telematics market provides a number of hurdles for aggregators to overcome

REVIEW OF THE MARKET

* Introduction
* Price comparison sites have changed the rules of the game in personal insurance

* Aggregators have enjoyed a dramatic rise in influence, with insurers now required to master this "science
* Success for providers on aggregators increasingly requires operational agility and a high level of scrutiny

*

Full Table of Contents is available at:
-- www.fastmr.com/catalog/product.aspx?productid=531041&dt=t

About Datamonitor

The Datamonitor Group is a world-leading provider of premium global business information, delivering independent data, analysis and opinion across the Automotive, Consumer Markets, Energy & Utilities, Financial Services, Logistics & Express, Pharmaceutical & Healthcare, Retail, Technology and Telecoms industries. Datamonitor's market intelligence products and services ensure that you will achieve your desired commercial goals by giving you the insight you need to best respond to your competitive environment. View more research from Datamonitor at www.fastmr.com/catalog/publishers.aspx?pubid=1002

About Fast Market Research

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