HIPPO: INSURANCE AGGREGATOR SITES ARE A GROWING FORCE
Tuesday, January 3, 2012
It’s estimated that in the UK, almost 84-million people visit online price comparison or aggregator sites each year and that 66% of consumers will purchase or renew their insurance online via either an insurer’s website or an aggregator. This figure is set to grow in the coming years making financial aggregators a force to be reckoned with.
Telesure MD, Thomas Creamer says that insurance aggregation in South Africa has gained considerable momentum due to the speed and convenience with which they can deliver relevant, consolidated insurance quotes for comparison. In South Africa, 35% of insurance policies are initiated online via either an insurer’s website or an aggregator whereas five years ago, only 5% were.
While the direct insurance channel is constantly being bullied by brokers, it’s fast becoming the channel of choice for consumers. It is increasing in popularity and stature as indicated by hippo.co.za’s year-on-year growth. Hippo.co.za received an 84% increase in website visitors in 2011 compared to 2009.
While doomsayers may argue that aggregators provide ‘stripped down’ quotes to attract consumers, Creamer begs to differ.
“Before you receive insurance quotes to compare from hippo.co.za, you’ll complete all of the traditional underwriting questions to determine your risk profile. Thereafter, you’ll speak to a consultant to complete the sale and if there is a difference in premium, it will be minimal. The same could happen in traditional broker market,” notes Creamer.
Whether or not aggregation is your cup of tea, it’s here to stay. “At the end of the day, until you have shopped around, you can’t be sure that your insurance needs are being properly serviced at the most competitive price. An aggregator is without question the simplest, fuss-free way to shop for insurance,” concludes Creamer.