Autumn Watch

The last IGO4 price comparison site watch reported quote volumes had started to level out and, in some cases, decline from the highs witnessed in 2012. That trend has continued throughout the summer, though the declines for some sites appear to have steadied, with the total number of quotes generated each month settling between 10 million and 11 million.

Compare the Market has bucked this general trend and surged upwards – buoyed by the public’s affection for meerkat Aleksandr Orlov – resulting in sustained double-digit year-on-year increases in quote volume, and growth in market share to 36% of all quotes generated through aggregators.

Google remains an interesting player in motor. Throughout 2013 it has doubled its quote share, albeit only from 1% to 2%, allowing it to move into the third tier of providers alongside Quote Zone and Tesco Compare, which have a similar market share. Go Compare and Money Supermarket, in particular, now have Google on their radar given their respective volumes derived from paid-for and natural Google search results. It will be interesting to see if Google’s forward momentum continues.

The size of the aggregator market and its share of overall new sales always makes for intriguing debate. When aggregators first started to emerge as a serious distribution option, conversion rates sat at around 10% of total quotes. That figure has now halved, as people visit multiple sites (2.5 on average) and get multiple quotes from each (again 2.5 on average). Around 1.75 million unique quotes are provided on these sites each month, and around 21 million per year, with 6.6 million customers taking out a new policy via an aggregator each year.

The aggregator share of the active market is more subjective. While there are around 30 million insured private cars on the road, a large number of consumers renew their policies without shopping around at all. This will be particularly prevalent in the current soft market, where – until recently – media and consumer perception was one
of increasing rates.

Rates of around 60% are commonly quoted at present. This suggests that around 55% of all of new motor policies written each year in the market originate on a price comparison site, with possibly another 5% starting on a price comparison site before being purchased from a brand directly. This overall 60% figure has been our take on the size of aggregator
share of the active market for some time now, and it seems unlikely to shift much.

If you wish to read more please view the Post Magazine Article

*Taken from the Post Magazine October 2013