UK Insurance Aggregators 2024
Summary
This 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. It also compares quotes provided by the leading aggregators for selected risk profiles across the key life and non-life insurance lines.
Motor and home insurance remain the policies most commonly acquired via price comparison websites (PCWs), despite witnessing downturns of 3 percentage points (pp) and 2.7pp in purchasing activity in 2023. However, the use of PCWs for research purposes is growing, with an increase observed in five of the seven lines of business. This trend is likely driven by the current cost-of-living crisis, which has compelled consumers to seek out increased value on these platforms. However, it is important to note that while research on PCWs has increased, the likelihood of consumers finalizing a purchase through these sites has diminished compared to 2022.
Scope
- The leading reason consumers chose a PCW was because they had used it before, with 61.7% of consumers citing this factor.
- Consumers are increasingly using a PCW to conduct research. For example, 69.2% of motor insurance customers did so in 2023.
- Compare the Market is the leading PCW within both non-life and life insurance, holding 49.3% and 43.7% shares respectively.
- Discover consumer purchasing trends through price comparison websites in 2023
- Determine the market shares of the four leading aggregators across various general and life insurance lines
- See the effects of insurance market regulation on price comparison websites
- Understand the effects of inflation on consumer behaviors
- Ascertain pricing differences between aggregators across a variety of life and non-life products
- Adapt your distribution strategy to ensure that it meets customer purchasing needs and behaviors
- Executive Summary
- Market overview
- Key findings
- Critical success factors
- The Aggregator Market
- Aggregators are more frequently used to purchase non-life insurance products
- Table Figure 1: The number of consumers purchasing insurance via a PCW is decreasing
- FCA pricing rules limit PCWs' ability to attract new customers
- The leading reason consumers choose a PCW is because they have used it before
- Table Figure 2: Over 60% of consumers choose a PCW because they have used it before
- PCWs are an essential tool for consumers conducting research before purchasing insurance
- Table Figure 3: Consumers conduct research on PCWs more for non-life insurance products
- Five of the seven lines saw their conversion rate decline
- Table Figure 4: Conversion rates decreased for five out of the seven products in 2023
- Pet insurance witnessed an increase in the number of respondents who switched
- Table Figure 5: Consumers are more likely to switch within motor insurance compared to other products
- Table Figure 6: Three of the four main personal lines witnessed a decrease in the number of consumers who switched using a PCW in 2023
- Aggregators are more frequently used to purchase non-life insurance products
- Aggregators by Line of Business
- Non-life insurance products on PCWs
- Table Figure 7: Quotes for motor insurance across the four main PCWs
- Table Figure 8: Motor insurance premiums have surged in 2024
- Table Figure 9: Quotes for home insurance across the four main PCWs
- Table Figure 10: Home insurance premiums have risen significantly in 2024
- Table Figure 11: Quotes for travel insurance across the four main PCWs
- Table Figure 12: Quotes for pet insurance across the four main PCWs
- Life insurance products on PCWs
- Table Figure 13: Quotes for income protection insurance across the four main PCWs
- Table Figure 14: Term assurance quotes across five leading PCWs
- Table Figure 15: Quotes for term assurance with critical illness cover across different PCWs
- Non-life insurance products on PCWs
- Competitor Profiles and Market Shares
- Compare the Market is the leading PCW
- Table Figure 16: Compare the Market is the leading PCW within non-life insurance
- Table Figure 17: Compare the Market also dominates the life insurance PCW market
- Competitor profiles
- Compare the Market is the leading PCW
- New Competition in the Aggregator Market
- Amazon's closure of its insurance store demonstrates the difficulty of entering the market
- US PCW acquires UK price comparison service
- Appendix
- Abbreviations, acronyms, and initialisms
- Definitions
- Methodology
- Secondary sources
- Further reading
Research Assistance
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