It became clear from the price analysis carried out during the course of 2012 that the impact of gender on pricing declined since the change in legislation was first announced earlier in the year. Many insurers immediately started to narrow the gap between the sexes –particularly older drivers – despite the legislation only coming into effect on 21 December.
The iGO4 price comparison watch compares prices for the same risk details across 1000 quotes so, for the latest quarterly analysis, the effective quote date was set past the gender ruling cut-off date in order to capture and monitor its immediate impact. The results were quite startling – on motor, males have seen almost double-digit falls in some cases from September to December, while the female rate has gone up by 3.4% over the same period. These headline figures do not tell the whole story, however, as females aged under 20 have seen rises of 13% while those over 30 have barely seen prices move upwards at all. Males of all ages – but especially younger drivers – have enjoyed huge reductions in the fourth and final quarter.
So the fear that insurers would use this as an opportunity to merely increase rates across the board has not materialised in what continues to be a soft market. The motor quote basket has also seen shifts for some brands in terms of competitive pricing. Admiral reasserted its position in the final quarter, particularly through its Diamond brand and we also saw Privilege coming to the fore alongside a couple of usual suspects on the direct front in LV and Octagon. Significantly, the ever-rising dominance of price comparison sites in the private car market finally matured and flattened out in 2012.
That said, in the space of just 10 years since their inception, aggregators now generate 10 to 11 million quotes every month and 60% of every new car insurance policy sold. Leading the way and cementing its position in 2012 was Compare the Market with a 32% market share of quotes, followed by Money Supermarket with 27% and Confused and Go Compare jointly in third spot with 18% each. The other 5% is made up of a number of smaller players with Quotezone and Tesco Compare vying for places five and six.
If you wish to read more please view the Post Magazine Article
*Taken from the Post Magazine January 2013