Aggregator channel vital in Europe
New research from London-based CP Consulting, a firm that specialises in financial services market research, has revealed that aggregators are becoming a ‘material and strategic’ distribution channel for insurers and an ‘important reference point’ for European consumers. The research analysed 43 aggregators in 10 European countries: Austria, Belgium, France, Germany, Italy, the Netherlands, Portugal, Spain, Sweden and the UK. Carlo Palmieri, managing director of the company, commented on the findings: “European consumers are faced with a reduction in their disposable income, especially in southern Europe, and are therefore more careful in their spending patterns. There is a particular focus on managing the bills, such as insurance, gas and electricity, mobile phone plans and broadband Internet access. In this context, aggregators help consumers understand the choice available and help them to find the best deal.”
New research from London-based CP Consulting, a firm that specialises in financial services market research, has revealed that aggregators are becoming a ‘material and strategic’ distribution channel for insurers and an ‘important reference point’ for European consumers. The research analysed 43 aggregators in 10 European countries: Austria, Belgium, France, Germany, Italy, the Netherlands, Portugal, Spain, Sweden and the UK. Carlo Palmieri, managing director of the company, commented on the findings: “European consumers are faced with a reduction in their disposable income, especially in southern Europe, and are therefore more careful in their spending patterns. There is a particular focus on managing the bills, such as insurance, gas and electricity, mobile phone plans and broadband Internet access. In this context, aggregators help consumers understand the choice available and help them to find the best deal.”
Collectively, the insurance price comparison market was estimated to be worth over €600 million in 2011 with regards to revenues, representing growth of over 20 per cent compared to 2010. The UK alone accounts for around two thirds of total revenues, followed by Germany and France. Spain and Italy have seen the highest growth rates in the last two years, although from a smaller base of customers. Palmieri said: “The aggregators industry is still in a development phase when compared to its full potential and this is evident when the industry revenues are benchmarked to population, GDP and other financial indicators.” The only mature market, he added, is the private motor insurance market in the UK. Given the current state of the European market as a whole, though, CP Consulting said the sector will continue its growth rate in the coming years, and expects the turnover to nearly double by 2015.
The researchers also noted that currently, 14 out of the 43 aggregators analysed in the report are owned by an insurance company or broker, and the largest aggregator in France, Spain and the Netherlands is owned by an insurer. Palmieri commented: “Given the strategic importance of aggregators for insurers and brokers, we expect this trend to continue in the coming years. Although there is no pan-European player across all geographies analysed yet, two UK groups (Admiral and BGL) have built a footprint in three of the largest European markets.”