Although competition remains fierce in the aggregator arena, the rush for volume has slowed as the motor market moves closer to break-even point says Tom Cooper, Executive Director, iGO4.
With Ernst & Young recently suggesting the motor market would be close to break-even point for 2011, the hard market appears to have been exited for a period of relative calm. At present there is no mad rush for volume in these improving conditions, and the small fall of 2.6% could be attributed to the emergence of Aviva’s Quote Me Happy brand — enabling Money Supermarket to establish clear water between itself and the competition — and smaller niche brokers emerging, particularly telematics providers. Competition remains fierce and last quarter the best-priced brand changed more often than it stayed the same. An 18 month trend in best price steadily increasing, has also been reversed, with a 5% drop in the past six months as the motor market moves back towards profit.
Challenging for number one It seems to be a case of ‘as you were’ for the main direct writers on motor, though Octagon, LV, Esure/Sheilas’ Wheels and 1st Central appear to be challenging Admiral’s long-held number one position. In the broker arena the various Kwik Fit brands – especially Express — have come to the fore, followed by Swinton, whose absence from Compare the Market is hurting the latter’s competitive position. Nonetheless, Compare the Market benefi ts from having a high calibre of BGL-administered brands to call upon and the Budget brand itself punches its weight. Thames City, the Hastings brands and those of Igo4, are next in line.
If you wish to read more please view the Post Magazine Article
*Taken from the Post Magazine January 2012