Timetric, a British financial services consulting firm, says online aggregators that collect and compare multiple insurance products for consumers are gaining ground to the detriment of large insurers who are being forced to compete on price.
In The Rise of Online Aggregators, a report published in July, Timetric says aggregators have enjoyed phenomenal growth in the United Kingdom, and now account for 60% of new automobile insurance business and 50% of personal insurance lines. Timetric suggests that there is room for similar advance in the rest of the world — specifically the Americas and Asia-Pacific regions. Timetric believes large, brand-name insurance companies have the most to lose, as they could find themselves competing directly with smaller insurers that can use pricing to access a large customer base without having to pay significant sums for marketing and advertising.
"The question for insurers is whether to take on the online aggregators or embrace them. They can join them and take advantage of the large quantity of potential customers, or they can improve their innovation, branding, customer relations and technological strategies to compete with them," comments Timetric insurance analyst Ben Carey-Evans.