United Kingdom (UK) Insurance Aggregators 2021

This report explores the ever-changing consumer purchasing behavior through price comparison sites. It identifies the most influential factors for customers when selecting a policy through this channel and reveals the brand strategies of the four leading sites. Their distinct 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.

The percentage of consumers conducting research on price comparison websites (PCW) at renewal increased for motor, while home, travel, and pet insurance saw declines. Motor insurance, the biggest market for aggregators, posted a rise of 1.5 percentage points. However, this trend was not replicated in the number of purchases made through the channel, however, with both motor and pet recording declines. Confused.com offers the cheapest policies in two out of the four product lines.

Scope

– Motor insurance has the strongest presence on PCWs, with almost a third of consumers purchasing policies through them.

– Aggregator revenue performances were mixed. GoCo Group and Compare the Market owner BGL Group posted encouraging results, but COVID-19 hit the turnover revenues of MoneySuperMarket and outgoing Confused.com owner Admiral.

– Advertising spend is high for three of the four leading aggregators, with Confused.com leading the way as it continues to improve its market position in the individual product lines.

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.

Companies mentioned

MoneySuperMarket

Confused.com

GoCompare

Compare the Market

BGL Group

Admiral Group

Competition and Markets Authority

Financial Conduct Authority

Insurethebox

Saga

LV=

Quoteline Direct

InsureandGo

CoverWise

Paws & Claws

Purely Pets

Perfect Pets

Amazon

Google

Honcho

weflip

Hastings

Bell

Alpha

Annual Travel

Aventus

Amazon

Caura

Table of Contents

Table of Contents

1. Executive Summary

1.1 Market changes driven by COVID-19 flag issues with the aggregator business model

1.2 Key findings

1.3 Critical success factors

2. Aggregator Market

2.1 Aggregators are an important channel for the distribution of insurance policies

2.2 PCWs experienced a slight decline in the distribution of policies in 2020

2.3 PCW market shares are driven by returning customers

2.4 PCWs are highly utilized as a pre-purchasing tool by consumers

2.5 Life insurance products experienced the biggest increase in conversion rates

2.6 Motor and home insurance saw the largest number of switchers through a PCW

2.7 FCA regulations on price walking will impact PCWs

2.8 Aggregators push for innovation

2.9 Tech providers challenge traditional aspects of the aggregator model

2.10 PCWs can further improve customer shopping experiences through API integration

3. Comparison Sites by Line of Business

3.1 Motor

– Confused.com offers the cheapest quotes for motor insurance

3.2 Home

3.3 Travel

– PCWs suspended the sale of travel insurance as a result of the COVID-19 pandemic

3.4 Pet

– The length of treatments drives the cost of policies for the four leading sites

3.5 Life products on PCWs

– Income protection

3.6 Term assurance

3.7 Term assurance and critical illness

4. Comparison Site Profiles

4.1 Compare the Market is the PCW of choice for personal insurance products

4.2 Consumers’ choices were more divided for life insurance products

4.3 Compare the Market

– BGL Group’s financial earnings are on the rise despite CMA fine

– Compare the Market’s branding image

4.4 MoneySuperMarket

– MoneySuperMarket’s revenue fell by 11% due to COVID-19

– MoneySuperMarket branding

4.5 Confused.com

– Admiral Group’s COVID-19-related rebate initiative reduced turnover revenue by 4% for H1 2020

– Confused.com launched an Amazon Alexa feature

– Confused.com branding

4.6 GoCompare

– Despite the implications of COVID-19, GoCo Group reported positive financial earnings in 2020

– GoCompare branding

5. Marketing

5.1 All PCWs have a strong focus on television advertisements

6. Appendix

6.1 Abbreviations and acronyms

6.2 Definitions

– Home insurance

– Life insurance

– Pet insurance

6.3 Methodology

– GlobalData’s UK Insurance Consumer Surveys

6.4 Secondary sources

6.5 Further reading

About GlobalData

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List of Figures

List of Figures

Figure 1: Despite the economic implications of COVID-19, consumers were more reluctant to purchase from a PCW in 2020

Figure 2: Most customers purchase through a PCW because they had used the site before

Figure 3: Traffic on PCWs is driven by consumers’ pre-purchasing activity

Figure 4: Less than half of consumers who used a site for research made a purchase on a PCW

Figure 5: Switching rates increased across motor, home, and travel

Figure 6: More than half of all consumers who use PCWs at the end of the policy ended up switching their motor and home insurance provider

Figure 7: Consumers could be paying more on premiums, more on compulsory excesses, and have less benefits included depending on the site they use

Figure 8: GoCompare’s promise to refund excess fees helped attracting more customers to the site in 2020

Figure 9: Implications of the COVID-19 pandemic are reflected on three of the four leading sites

Figure 10: Privilege offered the cheapest starting quote for two of the four sites

Figure 11: GoCompare’s average combined home insurance policies dropped dramatically in 2021

Figure 12: Policies from Insure & Escape were the cheapest on three of the four sites

Figure 13: Price quotes for pet insurance are significantly different despite most brands being the same

Figure 14: GoCompare and MoneySuperMarket offered the same products at the same price

Figure 15: Specialized life insurance PCW Cavendish offers better prices than the big four

Figure 16: Confused.com offers the cheapest average premium for term assurance with critical illness cover

Figure 17: Choozi offers more price-competitive quotes for level term assurance with additional critical illness cover

Figure 18: Confused.com remains the biggest advertisement spender for the fifth year in a row

Figure 19: Compare the Market also dominates the life insurance PCW market

Figure 20: Confused.com remains the biggest advertisement spender for the third year in a row

Figure 21: PCWs have a heavy reliance on television advertisements to reach consumers

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