Price comparison sites are making changes to the way they operate, embracing telematics and moving into new product lines.
This is the twenty-third IGO4 price comparison watch and, as long ago as 2010, there has been speculation as to when aggregators for private motor would reach maturity in the UK. There were already signs back then that long-established sites were finding it challenging to maintain their incredible growth. Indeed had it not been for the remarkable success of the Compare the Market meerkat, there would have been a decline in this market two years ago.
The reasons for this are complex and not immediately obvious. It is true that each of the major player’s definition of a quote may differ, and indeed always has done, but IGO4’s measure has been consistent since 2008. The general consensus in the mass media has been of rising insurance costs fuelled by uninsured drivers, the compensation culture and profiteering by insurers; all of which will drive a certain consumer mindset. As their renewal approaches, this media stance leads customers to expect a sizeable increase in their premium. On realising that actually it remains within the range of what they might consider reasonable, their desire and enthusiasm to embark on rate comparison is reduced.
Nor is the answer as straight forward as insurers withdrawing from demographic segments that are unprofitable. This could be as a result of the increased use of external data insurers and brokers review before producing a price. This includes the widening use of credit scoring software and identity checks
If you wish to read more please view the Post Magazine Article
*Taken from the Post Magazine April 2013