Aggregator sites to present new challenges
New research from Accenture suggests that the rapid pace of online adoption among UK insurance customers will not abate.
The management consultancy’s recent survey indicates that 63% of Britons have purchased motor insurance online; 45% home insurance; and 23% life assurance.
Over the next 12 months, 69% of respondents said they will be switching or purchasing new motor insurance online; 58% plan to buy home insurance online; and 40% life assurance.
UK consumers lead the rest of Europe with their pace of online insurance adoption and Accenture’s survey also reveals the challenges this has raised for UK insurers.
Notably, online consumers are strongly price sensitive, with over 76% of online home and motor insurance customers stating price to be a very important factor in their purchase decision.
According to Steve Lathrope at Accenture’s Insurance industry practice: “Adapting to the aggregator business model and online consumer behaviours has already impacted core insurance operations and will continue to force changes.”
He adds: “In particular, insurers are having to face up to challenges in areas such as branding, product design, customer retention, cross-selling strategies and price-optimisation.”
Mr Lathrope also points out that insurers need to be mindful of the future development of the aggregator model.
He explains that while the channel is growing market share, high levels of competition among the major aggregators means their profits are static or declining.
As a result, aggregators are likely to move further up the insurance value chain and look to retain more control over the customer relationship.
Category: Car Insurance News, Home Insurance News, Insurance News, Life Insurance News
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