Aggregators and motor insurance
The aggregators continue to grow their share of motor insurance market.
(With credit to a report by Ernst & Young for some of the information in this article.)
The impact on the motor insurance industry of price comparison sites – referred to as aggregators and including Money supermarket, Compare the Market and Go Compare – can sometimes be exaggerated, but it is clear that the rise in online sales does represent a fundamental shift in patterns of distribution. It is forcing existing players to find new models for generating profits in motor insurance.
The merits of different channels have been hotly debated over the past three to four years, and the growth of aggregator-selected panels, containing both insurers and brokers, has made the reality difficult to establish. Our analysis leads us to believe aggregators will continue to grow and we expect their market share to reach around 49% of the market by 2014.
4 Young Drivers is represented on all of the major motor insurance comparison sites and fully supports the shift in distribution.
The customer benefits by getting cheap motor insurance.
There is no doubt that the advent of aggregators has done a great deal to educate personal motor customers about price and choice of provider. Research is fairly unanimous in seeing customers as the main beneficiary of the rise of the aggregator.
As these chastened times take hold on household budgets, previously loyal customers faced with renewal premium increases may now question the wisdom of staying with their existing insurer. Undoubtedly, aggregator sites will benefit from this trend as consumers look for ways to reduce cover by adjusting product features such as add-ons and additional drivers and potentially trade in cars for lower-cost vehicles.
Released On 4th May 2011