Did you know that around 10 million people use price comparison websites in the UK alone? The popularity of such sites is growing year on year. While consumers benefit from having a speedy, convenient means of checking prices and comparing policies, how has the rise of price comparison websites affected the insurance market?
Price comparison websites have become incredibly popular in the last few years. Now, it’s very common to check prices and shop around before investing in insurance products and policies. In times gone by, policyholders may have been more inclined to go with the first quote or stick with the same provider for several years, but today, the landscape is very different. More than 80 percent of consumers used a comparison site to find the best deal, while almost 70 percent accessed a site to switch provider. Consumers have more choice as a result of the introduction and subsequent growth of price comparison sites, and they also benefit from more transparent pricing. Although there are advantages, it is important to point out that customers foot the bill for commission, which is a primary funding source for comparison sites along with advertising and sponsored listings.
Most of us are familiar with comparison sites, and in many cases, they serve an incredibly useful purpose. Consumers don’t have the time or the inclination to contact separate providers and obtain quotes, and using a one-stop-shop is much more convenient, even if there is a fee to pay via commission charges. Competition is fierce, and providers now have to work harder to entice customers and maintain their interest.
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