PRESS RELEASEAggregation Metrics: Consumer Approaches to Insurance Comparison Sites in Europe Use of aggregators to buy...
Media contact: Roberto Napolitano, +44 (0)20 3008 4406, rnapolitano@finaccord.comNotes to editors:Finaccord is a market re...
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Press release aggregration metrics channels used to buy insurance in europe

Published on: Mar 4, 2016

Transcripts - Press release aggregration metrics channels used to buy insurance in europe

  • 1. PRESS RELEASEAggregation Metrics: Consumer Approaches to Insurance Comparison Sites in Europe Use of aggregators to buy motor and household insurance is most advanced in the UK but is clearly now growing in France, Germany, Italy, Poland and SpainLondon, 11 February 2013 - Aggregators and online comparison sites are the fastest-growing distributionchannel for motor and household insurance in Europe while online purchases have generally grown rapidlyacross the continent, according to new research from Finaccord.Finaccords research, based on surveys of consumers in six European countries - namely, France, Germany,Italy, Poland, Spain and the UK - shows that overall, online channels of acquisition have demonstrated stronggrowth, increasing in five of the six countries researched. As a combined average for consumers switching amotor or household insurance policy or buying one for the first time, online channels accounted for anaverage of 42.3% of transactions in 2012, compared to 35.4% in 2008. The UK claimed the largest share ofonline purchases, with 69.0% of new and switched motor and household policies acquired online in 2012;France showed the lowest levels of online purchases, at 25.2% in the same year. “All the countries weexamined showed clear and robust growth in the use of online methods to purchase insurance,” said EdwardWilford, Consultant at Finaccord. “In both countries in which consumers had previously shown a strongpreference for online channels and in countries in which consumers had previously been less inclined to goonline for insurance products, there is an increasing trend for buying cover via the internet.”This fits in with information regarding consumer attitudes towards online tools both to research and purchaseinsurance products online. Across the six countries featured in this report, 23.2% of respondents stated thatthey never research insurance online, just above the proportion that always did so at 19.3% Turning to actualpurchases, an average of 45.3% of respondents reported that they never bought insurance online comparedto 12.3% that they always did so. Again, respondents in the UK were far more likely to use the internet forthese purposes than those in other countries, with as many as 32.4% reporting that they always researchedinsurance online and 24.2% saying that they always bought online. In contrast, France had the lowestproportion of consumers willing to go online in this way, as only 2.8% of respondents said that they alwaysused the internet to purchase insurance, while 66.8% of respondents in France stated that they never boughtonline.The rise in online channels of acquisition is simultaneous to, and probably driven in part by, the rise in the useof online insurance aggregators and comparison sites. As an average across all six countries, consumersbuying new coverage or switching providers for existing motor or household policies used an aggregator20.3% of the time in 2012, compared to 5.9% for policies purchased in all previous years combined. For theUK, the 2012 figure was 30.3%, the highest of the six countries; as with online channels in general, Francehad the lowest rate of aggregator use in 2012, at 11.2%. However, this was still more than three times thefigure recorded for purchases in all previous years combined in France, which was 3.1%. As such, theevidence of the research is not only that online acquisition of insurance is generally increasing but also thatuse of aggregators is on the rise.The correlation between the use of online channels and the use of aggregators extends to another facet ofthe market: the comparative rate of churn (i.e. the percentage of consumers switching provider or buying apolicy for the first time among all insured consumers). While average churn rates were generally fairly steadybetween 2008 and 2012, there is still a meaningful correlation between the online channel use, aggregatoruse and market volatility. “The UK had the most consumers buying online, the most using aggregators andexperienced the highest churn rates, with 39.3% of consumers switching their motor cover in 2012, while35.1% changed their provider of household insurance in the same year,” explained Edward Wilford. “Bycontrast, France had the fewest consumers buying online, the lowest percentage of aggregator use, andexperienced the least market volatility, with only 14.2% switching insurers for motor insurance and 16.8% forhousehold insurance during 2012.” --- END ---
  • 2. Media contact: Roberto Napolitano, +44 (0)20 3008 4406, rnapolitano@finaccord.comNotes to editors:Finaccord is a market research, publishing and consulting company specialising in financial services. Itprovides its clients with insight into and information about major issues in financial services in the UK,Europe and globally, with a particular focus on marketing and distribution topics such as affinitymarketing, bancassurance and strategic alliances.Published in January 2013, Aggregation Metrics: Consumer Approaches to Online InsuranceComparison Sites in Europe provides the answers to a number of key questions on the basis of itsanalyses of the behaviour of consumers in the context of online insurance generally and the distributionof motor and household insurance, in particular. For example, it casts light on whether the internet willcontinue to usurp the previous dominance of traditional face-to-face distribution, the speed at whichonline sales are shifting from regular laptop and desktop computers to tablets and mobile phones, andwhether growth in online distribution will only benefit aggregators or also direct sales by insurancecompanies and other competing distribution systems?Sample graphic from the report showing the percentage of switchers and new buyers of motor andhousehold insurance in 2012 (and all previous years combined) that bought their policy through anaggregator. Use of aggregators by switchers and new buyers for acquiring motor and household insurance: six European countries, 2012 and all previous years All previous years 2012 50% 40% 30.3% 30% 22.0% 20.3% 18.6% 20% 15.7% 15.6% 11.2% 9.9% 9.5% 10% 5.9% 5.9% 4.0% 4.3% 3.1% 0% France Germany Italy Spain Poland UK Average Source: Finaccord Aggregation Metrics Survey

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