Insurance Age - Aggregator systems drive customers to distraction

Insurance Age - Aggregator systems drive customers to distraction: Aggregator systems drive customers to distraction

Sarah Hills



Aggregator sites offering general insurance are failing to deliver consistent pricing and are not user-friendly, with about one in four quotes being abandoned, according to new research into online customer-service habits.

However, the report's author warned brokers that they needed to continue to invest in the online channel; predicting four out of five general insurance policies would be purchased online in 10 years' time.

The report, Online shopping survey for the general insurance market 2006, by Foolproof Business Services, found that 22% of quotes by aggregator sites were abandoned due to unresolvable usability problems or user fatigue.

After studying the behaviour of UK-based consumers looking to buy motor and home insurance, Tom Wood, managing partner of Foolproof and author of the report, said aggregator sites were winning the market argument but were not providing like-for-like prices: "When we contacted the consumer further down the line, the aggregator price evaporated because the details of the quote were different when they went to the insurers' sites. How many users who go to Confused.com and experience that problem will go back?"

Confused.com was the most commonly used aggregator in the report and was found to be the most time-consuming. However, Deborah Williams, managing director of Confused.com, said people would not give up on aggregator sites because "the consumer loves the idea of putting information in once and getting quotes from dozens of insurers. The prospect of searching each individual insurer and broker is too horrible to comprehend for most".

If brokers and insurers added a few extra questions to the quote form, such as the availability of a courtesy car and excess levels charged by individual insurers, Mr Wood suggested that aggregators would be able to create solid end-quotes: "Consumers will learn to ask the right questions and this may suggest a market movement from price-to -product comparison. I expect that soon someone will take the high-ground and become the expert in like-for-like comparison."

Confused.com maintained that it was already working on product comparison. Ms Williams said that, price first, accompanied by increasing policy information, would soon become key to the individual when purchasing insurance: "Customers that have a bad experience of an aggregator will think twice about going back; instead, they will look for an aggregator that provides the same quote as on the insurer's site when they click through."

Despite the overall poor customer experience, the report highlighted the increasing role of the aggregators. The 5% of time spent on aggregator sites last year increased to 28% in 2006. And, with 99% of people shopping for motor insurance online and 95% for home insurance, the trend looks set to continue.

Mr Wood said brokers must continue investing in the online channel. "In 10 years' time, four out of five policies will be transacted online, but aggregator sites do not have a bright future unless they offer like-for-like prices."