Table of Contents
Overview
-
- What you need to know
- Scope of this Report
Executive Summary
-
- The market
- Lack of loyalty towards insurance providers leads consumers to PCWs…
- …but other financial markets see far less movement
-
- Figure 1: Switching activity of financial services product holders, December 2015, September 2016 (home insurance) and November 2016 (car insurance)
- Companies and brands
- The big four dominate the PCW market
-
- Figure 2: Price comparison website usage in the last 12 months, July 2017
- Leading players struggle to establish a point of difference
-
- Figure 3: Attitudes, by price comparison website brand, July 2017
- The consumer
- Car and home insurance the most searched for…
- …whilst few turn to PCWs to compare other financial products
-
- Figure 4: Financial products researched through a price comparison website, July 2017
- Consumers favour familiarity
-
- Figure 5: Factors that influence consumers’ choice of price comparison websites, July 2017
- Customer service could become a key comparison metric
-
- Figure 6: Information that consumers would like to appear within a price comparison search, July 2017
- Nearly three in four users compare comparison sites
-
- Figure 7: Price comparison behaviours, July 2017
- Interest in pro-active price comparison tools
-
- Figure 8: Interest in features/services that could be offered by price comparison websites, July 2017
- What we think
Issues and Insights
-
- PCWs could evolve in to PFMs
- The facts
- The implications
- Breaking out of insurance
- The facts
- The implications
The Market – What You Need to Know
-
- Lack of loyalty towards insurance providers leads consumers to PCWs…
- …but other financial markets see far less movement
- Open Banking offers promise for PCWs….
- ….and presents new challenges
- CMA investigation rules in favour of PCWs
Market Environment
-
- Lack of loyalty towards insurance providers leads consumers to PCWs…
- …but other financial markets see far less movement
-
- Figure 9: Switching activity of financial services product holders, December 2015, September 2016 (home insurance) and November 2016 (car insurance)
- New regulations aim to improve competition in retail banking
-
- Figure 10: Open Banking incentives, June 2017
- Open Banking offers promise for PCWs….
- ….and presents new challenges
- CMA investigation rules in favour of PCWs
Companies and Brands – What You Need to Know
-
- The big four dominate the PCW market
- Comparethemarket rewards loyalty
- Confused goes big with TV campaign
- MoneySuperMarket looks to boost loyalty
- Zoopla acquires Money.co.uk
- Leading players struggle to obtain a point of difference
Market Share
-
- The big four dominate the PCW market
-
- Figure 11: Price comparison website usage in the last 12 months, July 2017
- Over half of PCW users use multiple sites
-
- Figure 12: Repertoire of price comparison websites used in the last 12 months, July 2017
- Loyalty scheme allows CTM to stand out
Competitive Strategies
-
- Comparethemarket (BGL Group)
- Financial performance
- Recent activity and strategic developments
- Loyalty incentives
- Confused.com (Admiral Group)
- Financial performance
- Recent activity and strategic developments
- GoCompare.com Group
- Financial performance
- Recent activity and strategic developments
- MoneySuperMarket Group
- Financial performance
- Recent activity and strategic developments
- Zoopla Property Group (ZPG)
Advertising and Marketing Activity
-
- PCWs invest in ATL campaigns to remain ‘front of mind’
-
- Figure 13: Above-the-line, online display and direct mail advertising expenditure by price comparison sites on financial services, 2012/13-2016/17*
- Confused.com tripled its adspend in 2016/17
-
- Figure 14: Above-the-line, online display and direct mail advertising expenditure by price comparison sites on financial services, by advertiser, 2014/15-2016/17*
- TV accounts for two thirds of total expenditure
-
- Figure 15: Above-the-line, online display and direct mail advertising expenditure by price comparison sites on financial services, by media type, 2016/17*
- Nielsen Ad Intel coverage
Brand Research
-
- What you need to know
- Brand map
-
- Figure 16: Attitudes towards and usage of selected price comparison website brands, July 2017
- Key brand metrics
-
- Figure 17: Key metrics for selected brands, July 2017
- Brand attitudes: Comparethemarket stands out from the crowd
-
- Figure 18: Attitudes, by price comparison website brand, July 2017
- Brand personality: Fun advertising boosts image of PCWs
-
- Figure 19: Brand personality – Macro image, July 2017
- Leading PCWs seen as helpful and reliable
-
- Figure 20: Brand personality – Micro image, July 2017
- Brand analysis
- Comparethemarket.com buoyed by meerkat promotions
-
- Figure 21: User profile of Comparethemarket.com, July 2017
- MoneySuperMarket.com is highly trusted
-
- Figure 22: User profile of MoneySuperMarket.com, July 2017
- GoCompare.com viewed positively but lacks a point of difference
-
- Figure 23: User profile of GoCompare.com, July 2017
- uSwitch.com sees usage levels lag behind the big four
-
- Figure 24: User profile of uSwitch.com, July 2017
- Confused.com seen as less fun and vibrant than its main rivals
-
- Figure 25: User profile of Confused.com, July 2017
The Consumer – What You Need to Know
-
- Car and home insurance the most searched for…
- …whilst few turn to PCWs to compare other financial products
- Insurance leads the way on the conversion front
- Customer service could become a key comparison metric
- Nearly three in four users compare comparison sites
- Interest in pro-active price comparison tools
Product Research and Purchase Activity
-
- Car and home insurance the most searched for…
- …whilst few turn to PCWs to compare other financial products
-
- Figure 26: Financial products researched through a price comparison website, July 2017
- Nearly two fifths of PCW users have arranged car insurance
-
- Figure 27: Financial products purchased/arranged through a price comparison website, July 2017
- Insurance leads the way on the conversion front
-
- Figure 28: Conversion ratios, by financial services product, July 2017
- One in five researched four or more products
-
- Figure 29: Repertoire of financial products researched or purchased/arranged through a price comparison website, July 2017
- MSE’s editorial expertise encourages people to switch a broader range of products
Factors That Influence Choice of PCWs
-
- Consumers favour familiarity
- More reason for loyalty schemes?
-
- Figure 30: Factors that influence consumers’ choice of price comparison websites, July 2017
- A quarter of 18-24s are influenced by search engine results
-
- Figure 31: Factors that influence consumers’ choice of price comparison websites, by age group, July 2017
Interest in Additional Search Filters
-
- Customer service could become a key comparison metric
-
- Figure 32: Information that consumers would like to appear within a price comparison search, July 2017
- Young people want to compare providers’ digital services
-
- Figure 33: Interest in seeing range of online/mobile services within a price comparison search, by age group, July 2017
Price Comparison Behaviours
-
- Nearly three in four users compare comparison sites
-
- Figure 34: Price comparison behaviours, July 2017
- Millennials are the mobile generation
-
- Figure 35: Proportion of consumers who say they have used a smartphone to access price comparison sites, by generation, July 2017
Interest in Price Comparison Features
-
- Interest in pro-active price comparison tools
-
- Figure 36: Interest in features/services that could be offered by price comparison websites, July 2017
- PCWs could evolve into PFMs
- Data security is paramount
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Consumer research methodology
Back to top