Table of Contents
Executive Summary
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- The market
- FCA to tackle dual-pricing in insurance
- Companies and brands
- CompareTheMarket is the most commonly used PCW for researching insurance
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- Figure 1: Price comparison websites used for researching insurance products, August 2019
- Big four looking to continue growing beyond insurance
- PCWs spent £124 million in ATL advertising
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- Figure 2: Total above-the-line, online display and direct mail advertising expenditure by price comparison websites on financial services, by media type, 2018/19
- High-profile and long-running campaigns drive positive perceptions of PCWs
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- Figure 3: Attitudes, by brand, October 2019
- The consumer
- 72% have used a PCW to research insurance
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- Figure 4: Products researched through a price comparison website, August 2019
- Car insurance has the highest conversion rate
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- Figure 5: Products purchased through a price comparison website, August 2019
- 12% spend less than 15 minutes researching at renewal
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- Figure 6: Time spent researching an insurance policy renewal, August 2019
- Convenience is key
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- Figure 7: Most important factor when using a price comparison website, August 2019
- PCWs generally perceived to be superior to buying direct from insurers
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- Figure 8: Price comparison websites vs insurers, August 2019
- 87% would buy direct, but there’s no silver bullet to attract consumers
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- Figure 9: Reasons to buy directly from an insurer, August 2019
- People trust traditional PCWs over alternative providers of aggregators
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- Figure 10: Tech giants and PCWs in insurance, August 2019
- Customer service and data security can draw consumers to tech giants
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- Figure 11: Reasons to consider a PCW run by a tech giant, August 2019
- What we think
Issues and Insights
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- Price is often the focus but delivering convenient solutions is the key
- The facts
- The implications
- PCWs hold a unique advantage in how they are perceived by consumers
- The facts
- The implications
The Market – What You Need to Know
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- FCA to tackle dual-pricing in insurance
- People increasingly reliant on mobile devices to shop and manage finances
Regulatory and Legislative Environment
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- FCA to tackle dual-pricing in insurance…
- … which is likely to have a big impact on the home and motor markets
- CMA delays decision on CompareTheMarket’s “most favoured nation” clauses
Market Drivers
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- 91% UK adults are recent internet users
- People are increasingly reliant on mobile devices to shop and manage finances
- The return of the savvy shopper
Companies and Brands – What You Need to Know
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- CompareTheMarket is the most commonly used PCW for researching insurance
- Big four looking to continue growing beyond insurance
- PCWs spent £124 million in ATL advertising in 2018/19
- High-profile and long-running campaigns drive positive perceptions of PCWs
Market Share
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- CompareTheMarket is the most commonly used PCW for researching insurance
- The PCW market is dominated by the big four
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- Figure 12: Price comparison websites used for researching insurance products, August 2019
- 58% used more than one price comparison website
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- Figure 13: Repertoire of price comparison websites used, August 2019
Competitive Strategies
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- CompareTheMarket: parent group exploring Open Banking opportunities
- MoneySuperMarket Group: leveraging its diversified business to achieve new growth
- GoCompare Group: Savings as a Service to tackle ‘botheration’
- Confused.com: a driver-centric strategy
Advertising and Marketing Activity
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- PCWs spent £124 million in ATL advertising
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- Figure 14: Total above-the-line, online display and direct mail advertising expenditure by price comparison websites on financial services, 2014/15-2018/19
- CompareTheMarket is the biggest advertiser
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- Figure 15: Total above-the-line, online display and direct mail advertising expenditure by price comparison websites on financial services, by advertiser, 2016/17-2018/19
- TV accounts for 59% of total spend
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- Figure 16: Total above-the-line, online display and direct mail advertising expenditure by price comparison websites on financial services, by media type, 2018/19
- Nielsen Ad Intel coverage
Brand Research
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- What you need to know
- Brand map
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- Figure 17: Attitudes towards and usage of selected brands, October 2019
- Key brand metrics
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- Figure 18: Key metrics for selected brands, October 2019
- Brand attitudes: CompareTheMarket is associated with rewarding loyalty
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- Figure 19: Attitudes, by brand, October 2019
- Brand personality: CompareTheMarket and GoCompare more likely to be seen as fun
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- Figure 20: Brand personality – macro image, October 2019
- uSwitch less likely to be associated with positive statements
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- Figure 21: Brand personality – micro image, October 2019
- Brand analysis
- CompareTheMarket is the most differentiated brand
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- Figure 22: User profile of CompareTheMarket, October 2019
- GoCompare is widely used but does not stand out
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- Figure 23: User profile of GoCompare, October 2019
- MoneySuperMarket is seen as accessible and reassuring
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- Figure 24: User profile of MoneySuperMarket, October 2019
- Confused.com brand can send confusing signals
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- Figure 25: User profile of Confused.com, October 2019
- uSwitch sets a different tone
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- Figure 26: User profile of uSwitch, October 2019
The Consumer – What You Need to Know
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- 72% have used a PCW to research insurance
- Car insurance has the highest conversion rate
- 12% spend less than 15 minutes researching at renewal
- Convenience is key
- PCWs generally perceived to be superior to buying direct from insurers
- 87% would buy direct, but there’s no silver bullet to attract consumers
- People trust traditional PCWs over alternative providers of aggregators
- Customer service and data security can draw consumers to tech giants
Product Research
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- 72% have used a PCW to research insurance
- Car and home insurance are the most searched for products
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- Figure 27: Products researched through a price comparison website, August 2019
- Beyond motor: more consumers researching other insurance
- Older generations more likely to research multiple products
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- Figure 28: Repertoire of types of products researched through a price comparison website, August 2019
Purchase Activity
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- Car insurance has the highest conversion rate
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- Figure 29: Products purchased through a price comparison website, August 2019
- Multiple conversion is higher among older age groups
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- Figure 30: Repertoire of types of products bought through a price comparison website, August 2019
Time Spent Researching Insurance at Renewal
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- 12% spend less than 15 minutes researching at renewal
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- Figure 31: Time spent researching an insurance policy renewal, August 2019
- People on lower incomes tend to spend less time researching
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- Figure 32: Time spent researching an insurance policy renewal, by household income, August 2019
Most Important Factor When Choosing a PCW
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- Getting the basics right is about convenience
- Reputation of the site is the top reason to use a PCW for one in five
- Final decision could be down to a promotion or deal
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- Figure 33: Most important factor when using a price comparison website, August 2019
PCWs vs Insurers
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- PCWs generally perceived to be superior to buying direct …
- … but insurers are more trusted with product-specific issues
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- Figure 34: Price comparison websites vs insurers, August 2019
- PCWs in good position to harness the potential of Open Finance
Reasons to Buy Directly From an Insurer
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- 87% would buy direct
- But there’s no silver bullet
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- Figure 35: Reasons to buy directly from an insurer, August 2019
- Consumers acknowledge PCWs are not whole-of-market
Interest in PCWs run by a Tech Giant
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- People trust traditional PCWs to be experts at what they do
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- Figure 36: Tech giants and PCWs in insurance, August 2019
- Google beats banks and insurers
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- Figure 37: Interest in a PCW run by Google – CHAID – Tree output, August 2019
- Stark differences by demographics
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- Figure 38: repertoire of interest in different types of providers of PCWs, August 2019
Reasons to Consider a PCW run by a Tech Giant
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- Customer service and data security are key
- The brand itself is not enough…
- … but they could leverage their tech expertise
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- Figure 39: Reasons to consider a PCW run by a tech giant, August 2019
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
- CHAID analysis methodology
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- Figure 40: Price Comparison Sites in General Insurance – CHAID – Table output, August 2019
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