New legislation is set to promote switching in a market where fewer customers have been looking to change insurance provider. This promotion of competition and consumer transparency will reinvigorate the aggregator channel and make it more relevant for customers. The use of wide most favored nation clauses has been banned. This will make the aggregator market more competitive as insurers are no longer prohibited from selling a policy for a lower price on another price comparison site or channel. Currently customers show strong loyalty to a particular aggregator, so as aggregators start to differentiate, customers will look to more than one at the point of renewal. Legislation is also looking at improving the purchasing process in order to improve transparency for customers. There will be a greater emphasis on the value of products over the next few years as well as further disclosure for customers at the point of renewal. Well established in the UK, the Big Four price comparison sites are now looking to expand beyond the dominant lines of motor and home insurance, while brand owners are using their expertise to enter international markets. Changing consumer habits incentivize brands to invest in technology (most notably the mobile channel) in order to upgrade their service. The challenge, however, is to keep the service simple in a market where insurers have greater responsibility to obtain information and customers show greater demand for information.
Customers are loyal to their aggregator but not their insurance provider.
Policy price is the key determinant for customers purchasing through an aggregator.
Aggregators are building a connection with customers through advertising.
Verdict Financial’s “UK Insurance Aggregators 2016” explores consumer purchasing behavior through price comparison sites and how it is changing. It discovers what is most influential to customers when selecting a policy through the channel and reveals the brand strategies of the four leading sites. New regulation is highlighted, as well as key factors that will influence the aggregator market over the next few years.
Reasons To Buy
Adapt your distribution strategy to ensure it still meets customer purchasing behaviors.Ensure you remain competitive as new innovations revolutionize the consumer purchasing journey.
Be prepared for how regulation will impact the aggregator channel over the next few years.