The private motor insurance market remains highly competitive and insurance providers need to ensure they choose a distribution strategy that best serves their target audience. The distribution landscape is dominated by the direct and broker channels; however, the affinity channel is the area for growth as retail brands can offer a trusted brand and rewards that are personalized and instant.
Ensure your distribution strategy is evolving to meet changing consumer behavior.
Benchmark your advertising budget against your competitors.
Which channel do consumers prefer when buying car insurance?
Do I need an online presence?
How is telematics affecting distribution?
Insurers need to be price-competitive for both existing and new customers, or consumers will switch providers.
Primarily seen as a niche offering aimed at young drivers, telematics is growing and new websites such as "Comparethebox.com" are reshaping this market away from traditional websites. Providers must keep up with these new channels to ensure a place in this market.
With an estimated 47% of GWP in 2013, this channel is too big to be ignored and has the advantage of minimal acquisition costs.