Price Comparison Sites in General Insurance - UK - November 2019

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
FCA to tackle dual-pricing in insurance
Companies and brands
CompareTheMarket is the most commonly used PCW for researching insurance
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
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
Figure 3: Attitudes, by brand, October 2019
The consumer
72% have used a PCW to research insurance
Figure 4: Products researched through a price comparison website, August 2019
Car insurance has the highest conversion rate
Figure 5: Products purchased through a price comparison website, August 2019
12% spend less than 15 minutes researching at renewal
Figure 6: Time spent researching an insurance policy renewal, August 2019
Convenience is key
Figure 7: Most important factor when using a price comparison website, August 2019
PCWs generally perceived to be superior to buying direct from insurers
Figure 8: Price comparison websites vs insurers, August 2019
87% would buy direct, but there’s no silver bullet to attract consumers
Figure 9: Reasons to buy directly from an insurer, August 2019
People trust traditional PCWs over alternative providers of aggregators
Figure 10: Tech giants and PCWs in insurance, August 2019
Customer service and data security can draw consumers to tech giants
Figure 11: Reasons to consider a PCW run by a tech giant, August 2019
What we think
ISSUES AND INSIGHTS
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
FCA to tackle dual-pricing in insurance
People increasingly reliant on mobile devices to shop and manage finances
REGULATORY AND LEGISLATIVE ENVIRONMENT
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
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
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
CompareTheMarket is the most commonly used PCW for researching insurance
The PCW market is dominated by the big four
Figure 12: Price comparison websites used for researching insurance products, August 2019
58% used more than one price comparison website
Figure 13: Repertoire of price comparison websites used, August 2019
COMPETITIVE STRATEGIES
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
PCWs spent £124 million in ATL advertising
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
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
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
What you need to know
Brand map
Figure 17: Attitudes towards and usage of selected brands, October 2019
Key brand metrics
Figure 18: Key metrics for selected brands, October 2019
Brand attitudes: CompareTheMarket is associated with rewarding loyalty
Figure 19: Attitudes, by brand, October 2019
Brand personality: CompareTheMarket and GoCompare more likely to be seen as fun
Figure 20: Brand personality – macro image, October 2019
uSwitch less likely to be associated with positive statements
Figure 21: Brand personality – micro image, October 2019
Brand analysis
CompareTheMarket is the most differentiated brand
Figure 22: User profile of CompareTheMarket, October 2019
GoCompare is widely used but does not stand out
Figure 23: User profile of GoCompare, October 2019
MoneySuperMarket is seen as accessible and reassuring
Figure 24: User profile of MoneySuperMarket, October 2019
Confused.com brand can send confusing signals
Figure 25: User profile of Confused.com, October 2019
uSwitch sets a different tone
Figure 26: User profile of uSwitch, October 2019
THE CONSUMER – WHAT YOU NEED TO KNOW
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
72% have used a PCW to research insurance
Car and home insurance are the most searched for products
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
Figure 28: Repertoire of types of products researched through a price comparison website, August 2019
PURCHASE ACTIVITY
Car insurance has the highest conversion rate
Figure 29: Products purchased through a price comparison website, August 2019
Multiple conversion is higher among older age groups
Figure 30: Repertoire of types of products bought through a price comparison website, August 2019
TIME SPENT RESEARCHING INSURANCE AT RENEWAL
12% spend less than 15 minutes researching at renewal
Figure 31: Time spent researching an insurance policy renewal, August 2019
People on lower incomes tend to spend less time researching
Figure 32: Time spent researching an insurance policy renewal, by household income, August 2019
MOST IMPORTANT FACTOR WHEN CHOOSING A PCW
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
Figure 33: Most important factor when using a price comparison website, August 2019
PCWS VS INSURERS
PCWs generally perceived to be superior to buying direct …
… but insurers are more trusted with product-specific issues
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
87% would buy direct
But there’s no silver bullet
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
People trust traditional PCWs to be experts at what they do
Figure 36: Tech giants and PCWs in insurance, August 2019
Google beats banks and insurers
Figure 37: Interest in a PCW run by Google – CHAID – Tree output, August 2019
Stark differences by demographics
Figure 38: repertoire of interest in different types of providers of PCWs, August 2019
REASONS TO CONSIDER A PCW RUN BY A TECH GIANT
Customer service and data security are key
The brand itself is not enough…
… but they could leverage their tech expertise
Figure 39: Reasons to consider a PCW run by a tech giant, August 2019
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
CHAID analysis methodology
Figure 40: Price Comparison Sites in General Insurance – CHAID – Table output, August 2019