What are the key differences between those who buy their insurance using price comparison websites (PCWs) and those who buy direct? Is there tangible value in targeting consumers more likely to do one or the other?
Insurance startup Brolly hits the headlines last week by raising £1m from investors. The personal lines broker said the seed investment was one of the largest in the UK Insurtech sector to date.
It’s a good time to be a major price comparison site. As premiums have risen , the number of consumers shopping around and buying policies through the big four aggregators has also risen dramatically in the last 12 months.
Some insurance brands deliberately offer different prices on each of the price comparison websites (PCWs) and there are good reasons why adopting this strategy may well be appropriate. Other brands strive to provide consistent pricing across all channels but fail to deliver on this approach.
Last week the Financial Conduct Authority published an unprecedented level of detail about how much home insurers pay out in claims, their claims frequency and claims rejection rates.
Price comparison websites (PCW's) have a huge role to play in the distribution strategy of most serious insurance brands, with the exception of Direct Line and Aviva who have made a deliberate decision to market their brands directly to consumers.