Drivers of change
Tom Cooper takes us through the results iGO4’s second price comparison watch and questions why Direct Line does not use the service of aggregators.
The price comparison market continues to have a dominant grip on UK private car insurance, with Igo4’s second price comparison watch indicating that consumer prices remained static in the fi rst quarter of 2009. The average price of the most competitive quote increased by only 0.12% to £386.44 — despite insurer attempts to force through rate increases. As highlighted in the last watch, January’s marketing spend resulted in six million quotes being carried out that month for four million unique visitors, presenting significant processing challenges for a large number of participating brands (Post, 5 February 2009, p16).
On Confused, for example, quote volumes doubled between October and January due in part to the increased spend but also site changes encouraging customers to carry out multiple quotes, for the same risk, by playing around with their voluntary excess. This caught a number of brands on the hop in January. While there were 70-plus brands on Confused at the time, nothing like that number were able to return prices on each individual quote. Insurers addressed these issues through January and February and it has had a considerable knock-on effect on Confused’s competitive position, to the extent that displayed prices are now completely comparable with the other two major players.
If you wish to read more please view the Post Magazine Artile
*Taken from the Post Magazine April 2009