Coming to terms with

aggregators:
Global lessons for
insurance carriers
Aggregators may not have attracted vast revenues,
but their impact on specific markets has been huge
and they are likely to continue growing rapidly
Aggregators around the world

UK: 60% - 70% of new auto premiums

US: Many aggregators, but limited impact to date

France: 18% average annual growth for past 5 years

Spain & Italy: Highest growth in Europe past 2 years, but off a low base

Japan: 33% growth since 2009, accounts for 5% of personal-lines sales

What makes an aggregator?

Strong online presence

Extensive advertising to build traffic

Comparison of quotes & coverage from multiple carriers

Customer chooses a quote, clicks through to carriers

site for processing
Aggregators paid by carriers that make a sale

Carriers responsible for account servicing & claims

Aggregators have changed the industry

In a relatively short time, aggregators have:

Altered the way Forced direct Levelled the playing field through
people think about carriers to amend simplicity & transparency
buying insurance pricing structures,
frequency of Increased the Altered the
Changed customer customer contact & incidence of economics of
expectations & quote volumes insurance insurance
buying behavior application fraud distribution
Compelled especially for
participating brokers
insurers to adapt &
integrate their
systems
The future of insurance aggregators

Over the next few years, aggregators will:

Experience continued growth
Disrupt insurance industry economics
Continue to drive the evolution of the
business model
New geographies
New lines of business
Larger share of the value chain
Expanded services
Insurers strategies
for aggregators
Insurers expect aggregators to play a greater role in distribution

Q: What percentage of the distribution of your products currently happens through

aggregator sites, and will happen in three years time?

19%
Searching for information
26%

21%
Seeking a quote
26%
Accenture
Distribution Finalizing a sale
18%
& Agency 21%
Management 16%
Survey 2015 Cross-selling
19%

19%
Quoting at renewal
22%

16%
Ongoing customer service
19%

Current In 3 years
Copyright 2015 Accenture All rights reserved. Source: Accenture Distribution and agency management survey 2015
The majority of carriers are considering proactive strategies
in response to the increased popularity of aggregators
Q: Which strategic options is your organization considering in relation to the use of aggregator sites?

Setting up your own aggregator site to sell your own and other products 59%

Defining a low-cost product set specifically for aggregators 50%

Setting up a new sales structure dedicated to aggregators 34%

We are not considering any strategic options in relation to aggregators 13%

Other 1%

0 10 20 30 40 50 60 70

Copyright 2015 Accenture All rights reserved. Source: Accenture Distribution & Agency Management Survey 2015
Carriers responses vary by line of business and region
Accenture Distribution & Agency Management Survey 2015

Q: Which options is your organization considering Q: Does your organization work with aggregators under a sub-
regarding the use of aggregators? brand today (as opposed to under its main brand, or a combination
A: Setting up your own aggregator site to sell your of the two), and does it intend to do so in three years time?
own and other products A: Yes, under a sub-brand

By Insurance Type
Multiline 54% Life only 31%
53%
P&C / general only 49%
56%
P&C / general only 56% Multiline 46%
51%

Europe vs North America

Life only 62% 43%
Europe
45%
48%
North America
55%
Today In 3 years

Copyright 2015 Accenture All rights reserved. Source: Accenture Distribution & Agency Management Survey 2015
Carriers have used four main strategies

Aggregators offer insurers volume in return for thin margins

New & smaller carriers have the most to gain
Insurers have responded in four ways:

1 Rejection
2 Cooperation
3 Crowding
out rivals 4 Participation

No Partner with Create multiple Set up their

participation aggregators; underwriting own aggregator
whatsoever treat them as companies to platform,
an additional achieve better invest in an
distribution channel positioning in existing aggregator,
aggregator or form an alliance
search results with one
Recommendations for insurers

Carriers should
consider aggregators Integrate & optimize
as an additional Weigh merits of a consistent vs different customer
distribution channel experience across own & aggregator sites
& develop
strategies to Develop tailored value proposition
maximize that Consider tailored offers, streamlined products, or niche
channel offerings to maximize the aggregator channel
51% of insurers indicate they are defining a set of low-cost
products for use on aggregator sites*
They may choose
to engage in one of
two ways:

* Source: Accenture Distribution & Agency Management Survey 2015

Four building blocks for aggregator / carrier success

1 Differentiated customer proposition 2 Tight market segmentation

Simple, modular offering Clear targeting for

packaged for easy simpler lead-generation,
accessibility & comprehension branding & pricing

3 A compelling digital offering 4 Lean & agile operations

Use digital tools to optimize the Implement low-cost, configurable

customer experience, track whats technology platform for rapid
working, & adapt immediately adaptation, product changes
& new launches
Appendix
One-tenth of insurers sales are generated by aggregators
Q: Roughly what percentage of your organizations overall sales is currently driven
through each of the following channels?

Direct channels (online, phone) 21%

Brokers 15%

Tied agents 14%

Aggregators 10%

Bancassurance 10%

Customers workplace 9%

Car dealers 7%

Retailers 6%

Affinity groups 6%

Other (please specify) 1%

0 10 20 30

Q12
Copyright 2015 Accenture All rights reserved. Source: Accenture Distribution & Agency Management Survey 2015
Insurers across all geographies expect aggregators
to play a greater role in distribution
Aggregators current use Aggregators use in 3 years

26% 31%
20% 31%
Searching for information 25% Searching for information 28%
12% 19%
21% 24%

26% 29%
23% 30%
Seeking a quote 22% Seeking a quote 22%
16% 18%
23% 26%

28% 28%
18% 23%
Finalising a sale 23% Finalising a sale 25%
13% 16%
21% 22%

25% 30%
16% 19%
Cross-selling 21% Cross-selling 26%
12% 13%
18% 21%

27% 27%
19% 24%
Quoting at renewal 24% Quoting at renewal 22%
15% 17%
22% 21%

23% 27%
16% 19%
Ongoing customer service 22% Ongoing customer service 24%
10% 13%
24% 26%

UK Rest of Europe Latin America APAC North America UK Rest of Europe Latin America APAC North America

Source: Accenture Distribution & Agency Management Survey 2015

Tailoring products and sales structures for aggregators
Insurers across lines of business are more interested in
tailored products for aggregators than tailored sales structures

Q: Which strategic options is your organization considering in relation to the use of aggregator sites?

Defining a low-cost product set specifically Setting up a new sales structure dedicated to aggregators
for aggregators
55% 54%

45%
38%
34%
29%

Life-only P&C/General only Multi-line insurers Life-only P&C/General only Multi-line insurers

Source: Accenture Distribution & Agency Management Survey 2015

Tailoring products and sales structures for aggregators
North America leads the way in tailoring
products and sales structures for aggregators

Q: Which strategic options is your organization considering in relation to the use of aggregator sites?

63%
57%

41% 42%

34%
32%

Europe APAC North America Europe APAC North America

Defining a low-cost product set specifically for aggregators Setting up a new sales structure dedicated to aggregators

Source: Accenture Distribution & Agency Management Survey 2015

Digital Transformers are more proactive than Digital Followers
with regard to aggregators
Transformers are more likely to be using aggregator sites, and are more likely to have plans to
develop specific products for aggregator sites and to set up their own aggregator sites
Q: Do you work with aggregator sites today under your organizations main brand or a sub-brand?
How do you believe you will work with them in three years time?

Under a sub- organization's

main brand
Under my
Transformers Today 73% In 3 years 66%

Followers Today 53% In 3 years 52%

Transformers Today 57% In 3 years 57%

brand Followers Today 38% In 3 years 52%

Q: Which strategic options are you considering in relation to the use of aggregator sites?

66%
Defining a low-cost product set specifically for aggregators
45%

65%
Setting up our own aggregator site to sell our own and other products
53%
Transformers Followers

Source: Accenture Distribution & Agency Management Survey 2015

More Information

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www.accenture.com/insurance