With Ernst & Young recently suggesting the motor market would be close to break-even point for 2011, the hard market appears to have been exited for a period of relative calm. At present there is no mad rush for volume in these improving conditions, and the small fall of 2.6% could be attributed to the emergence of Aviva’s Quote Me Happy brand — enabling Money Supermarket to establish clear water between itself and the competition — and smaller niche brokers emerging, particularly telematics providers. Competition remains fierce and last quarter the best-priced brand changed more often than it stayed the same. An 18 month trend in best price steadily increasing, has also been reversed, with a 5% drop in the past six months as the motor market moves back towards profit.

Challenging for number one It seems to be a case of ‘as you were’ for the main direct writers on motor, though Octagon, LV, Esure/Sheilas’ Wheels and 1st Central appear to be challenging Admiral’s long-held number one position. In the broker arena the various Kwik Fit brands – especially Express — have come to the fore, followed by Swinton, whose absence from Compare the Market is hurting the latter’s competitive position. Nonetheless, Compare the Market benefi ts from having a high calibre of BGL-administered brands to call upon and the Budget brand itself punches its weight. Thames City, the Hastings brands and those of Igo4, are next in line.

If you wish to read more please view the Post Magazine Article

*Taken from the Post Magazine January 2012

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New direct brands launched: Zenith Insurance and Zenith Insurance Plus

[Peterborough, 24 November 2011]

iGO4 limited and Markerstudy announce their partnership which has enabled Markerstudy to deliver new direct brands Zenith Insurance and Zenith Insurance Plus. These Motor Insurance brands are scheduled to go live on 24th November 2011.

Clive Fulcher, Head of Direct Products commented: “Markerstudy identified a significant opportunity to complement its current distribution via brokers by creating direct products. With our experience of underwriting non-standard footprints we believe we can extend our reach without changing our underwriting philosophy. To achieve these goals we needed a direct brand and the associated skill set, which is where iGO4 came in.”

Matt Munro, MD, iGO4 Limited said: “iGO4 Limited is delighted to launch its first partnership, having invested heavily in the infrastructure and skill set required to support this and other partnership models. Our experienced team has brought numerous successful insurance propositions to market and this, combined with our tailor made infrastructure will ensure we deliver Markerstudy’s expansion goals.”

The new brands Zenith Insurance and Zenith Insurance Plus offer a standard and an enhanced Motor Insurance proposition, giving customers choice. The products will vary from what is available in the broker market and will be built specifically for the direct business. The real time pricing and other features of the iGO4 model will allow Zenith to test markets and price accordingly. Distribution will be primarily via aggregators, leveraging iGO4’s strong relationships with these sites.

Matt Munro said: “Our partnership with Markerstudy is built on strong foundations, not least the importance they have placed on anti-fraud measures. At iGO4 we want to be at the forefront of introducing insurer protection measures and lead the market on counter fraud and customer validation. These synergies bode well for success.”

Clive Fulcher commented: “Our growth plans are exciting but I must stress that this is incremental business to Markerstudy. Our broker market remains a priority and is not expected to drop below 80% of our overall written business. The overall goal for GWP is £50million within 5 years with a year one aspiration of £10million.”

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Having witnessed the motormarket coming to its senses over the past 12 months, biting the bullet and putting through the increases required to give it a chance of returning to profitability, rates have actually now softened by just under 3% in the last quarter.

The 12th and latest iGO4 Price Comparison Watch has found best-price decreases for two out of every three of the 500 quotes measured. Furthermore, as competition increases, there has been more movement of best price between brands; 40% of the quotes had a different brand showing as most competitive compared to the last report in July. Noticeably there was a much wider mix of brands coming out on top and a greater number of niche players and telematics providers are pinching top spot when the quote circumstances are right. The battle between direct writers and broker brands continues to be closely fought, with the directs edging things by 56% to 44% this time around.

While Admiral continues to be a leading player, there has been a slight contraction of its dominant position, even on Confused. It’s main challengers in the direct channel are Esure and its sister brand Sheilas’ Wheels. Octagon, LV and 1st Central also stood out alongside the ever competitive Swiftcover, as well as Axa’s direct proposition.

If you wish to read more please view the Post Magazine Article

*Taken from the Post Magazine October 2011

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In the latest price comparison watch — the 10th consecutive quarterly study — we have once again seen premium increases that will help the move back towards profitability. Insurers appear to have well and truly got to grips with the aggregator channel and Aviva’s recent decision to ‘officially’ come back into the arena is further proof that, if you want to be a serious player in private motor, you have to
participate on these sites. However, if insurers are beginning to enjoy profitable aggregator strategies, is this at someone else’s expense?
Instinctively one might assume it would be the consumer facing some hefty annual hikes in their premiums. But our analysis shows that, while rises have been experienced across the board, the brunt of this is being borne by particular segments, such as young drivers.

July 2011 – Choppy waters ahead?

• No signs of a slowdown in growing aggregator quote volumes
• BUT….. converting quotes into sales represents a growing challenge
• Aggregators’ competitive footprint narrows as brands concentrate on profitable business
• Change in underwriting approach looms large on the horizon – how will aggregators respond?

If you wish to read more please view the Post Magazine Article

*Taken from the Post Magazine July 2011

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OUR quarterly price comparison watch has followed the rise of Beat That Quote with interest and last spring’s commentary indicated it was the fastest growing aggregator on the back of an excellent customer journey and superb IT platform (www.postonline.co.uk/1601100). As such, it has always been the most likely candidate for acquisition. We have also been vocal in expecting Google to make an entry into this space; it had already dipped its toe in the water on life and, given its dominant position in online advertising, this was a natural next step. From the outside, its acquisition of Beat That Quote would appear to represent a perfect match and both sides can be happy with the potential opportunity inherent in the £37.7m deal (www.postonline.co.uk/2032607).

The big question now is, what will Google do with the aggregator? The search engine giant will have to tread carefully to ensure that the credibility of its position as an impartial customer
champion is maintained, with the branding of the proposition an interesting challenge.

April 2011 – Shaking up the market

• Google purchase of BeatThatQuote shakes up the market
• Price comparison sites driving even more quotes but conversion rates falling
• Narrowing of competitive footprint as Brands start to cherry pick business
• Young driver segment still losing out

If you wish to read more please view the Post Magazine Article

*Taken from the Post Magazine April 2011

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Light amongst the gloom as local business igo4 secures investment to support its growth strategy and forge ahead with exciting new business plans including the opening of a brand new contact centre

iGO4 Limited, the insurance broker founded in 2007 by Matt Munro and Tom Cooper, has agreed an investment deal with an insurance related Dutch holding company which will provide funding facilities to support igo4’s long term business plan and aggressive growth strategy. This will include the opening of a brand new contact centre in July 2011 at Olympus House, Staniland Way, Peterborough.

Tom Cooper, Executive Director, iGO4 limited commented: “We are absolutely delighted to be able to move into the next phase of iGO4’s evolution. At a time when economic conditions are tough, the investment supports our plans to in-source the administration of our motor and home policies, thereby creating over 100 jobs in the area over the next two years.”
iGO4 have already started searching for a call centre sales manager and recruitment for a wide variety of roles will intensify over the coming months. igo4 have also had fantastic support from the local area and in particular from Opportunity Peterborough who runs the Cambridge & Peterborough Growth Fund, who in recognition of the company’s long term plans to bring jobs to the local area has provided a grant to help support its market leading technology solutions.

Matt Munro, MD iGO4 limited continued: “Our business model is based on delivering innovative customer propositions that also deliver results for our trading partners. We have immediate plans to significantly grow our motor and home business and the investment also provides the platform for us to launch new product lines and look at other distribution opportunities in the market.”
Within a year of start-up iGO4 had already won a prestigious industry ‘innovation’ award for its product range and in keeping with this progressive culture, iGO4 is already striving to establish itself as a local employer of choice.

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IGO4 has secured investment to support their growth strategy and forge ahead with exciting new business plans.

iGO4 Limited, the personal lines broker founded in 2007 by Matt Munro and Tom Cooper, has agreed an investment deal with IVM Intersurer B.V., a Dutch holding company that specialises in investing in insurance related businesses. IVM is associated with the Hollard Insurance Group, South Africa’s largest independent and privately owned insurance group. It has taken a minority interest in the company, and has provided funding facilities to support igo4’s long term business plan and aggressive growth strategy.

Matt Munro, MD iGO4 Limited commented: “We are absolutely delighted to be working with IVM, and to be able to move into the next phase of iGO4’s evolution. Following a strategic review, the investment supports our plans to in-source administration and to continue to significantly grow our motor and home books. This also provides the platform to launch new product lines and look at other distribution opportunities in the market.” He continued: “Our business model is based on delivering innovative propositions into the market. Now we can align our interests even more closely with those of our partners for even greater collective success.”

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The continued upward movement in motor rates through the final quarter of 2010 appears to be running out of steam. In what has been a rapidly hardening market, the best price on aggregators is now 30% higher than it was 15 months ago. The natural assumption is that this would work in favour of the price comparison market, as consumers are likely to be tempted to shop around more if faced with such a rise on their renewal rate.

However, consumers may be finding it harder to beat their existing provider’s renewal quote via the price comparison sites due to a number of trends in the market. As first pointed out last spring, one of these trends has been dual pricing by participating brands in favour of existing customers they wish to retain. This began with direct writers and has now stretched to the broker brands.

AGGREGATOR HIGHLIGHTS—WINTER 2010

• Motor rates continued to rise in the final quarter of 2010, but the rate of increase also continues to slow.
• More brands are adopting a dual-pricing approach to protect existing books.
• Commercial arrangements show no sign of alignment to a longer term strategy.
• Increased competition on household cover is still holding rates back—Go Compare is challenging MoneySupermarket on panel size and competitiveness but quote volumes remain low.
• A rethink may be required regarding product diversification as home insurance fails to gain traction.

If you wish to read more please view the Post Magazine Article

*Taken from the Post Magazine January 2011

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A shift in strategy

Despite the rise in private car insurance rates throughout 2010, Tom Cooper reveals some brands are slipping back to a volume-based approach.

The relentless surge back towards profitability for private car insurance has continued unabated in the last quarter, with a 6% increase in best price coming through across 500 quotes. This takes the rise to
27.5% in 2010 to date — having not moved at all through 2009. However, the rate of increase has slowed and signs are emerging of a few brands breaking ranks and starting to move back towards a volume-based strategy in certain segments. This has been led by RSA’s new E-Choice brand, which in its start-up quarter has immediately become the brand that is cheapest most often — followed by Hastings, Sheilas’ Wheels, Esure, Admiral, Octagon, LV and 1st Central as direct writers dominate. Somewhat worryingly, 29% of our risk sample actually showed a decrease in price during the last quarter. In this eighth price comparison watch, with pricing segmentation in mind and rate increases continuing to prevail, iGO4 dropped down a level and identified which segments have been hardest hit. It is clear that young drivers are feeling the real brunt of the nervousness of underwriters; the increase for males in their 20s was 8.35%, and this has been compounded by the ongoing uncertainty surrounding Quinn.

If you wish to read more please view the Post Magazine Artile

*Taken from the Post Magazine October 2010

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Direct Response

The summer has seen direct writers fight back, coming out ahead of brokers 60%of the time. Tom Cooper asks why and considers the current aggregator trends.

The climb in average price of the most competitive quote on the four major motor price comparison sites has continued through to the summer, with rates still rising in hefty chunks — but the rate of increase has started to slow (see table below). Indeed, with the market returning a 119% result for 2009 it will not need to shift much further to return to profit, assuming expenses are being kept under control as well as claims experience and inflation being reasonably managed. Alongside continued rate improvement, the most striking change has been the strengthening position of direct writers. In this latest Igo4 watch, they came out top 60% of the time, having always run neck and neck with the broker market in the past.

In fact,we’ve seen broker-based insurers feeding in significant increases throughout 2010 and certainly higher than our index. These insurers have been able to push through much needed rate rises while simultaneously growing volumes, as capacity in the motor market shrinks and their competitors narrow their underwriting footprints or, in some cases, withdraw altogether. So, with insurers filling their capacity gap through the rebroking of existing business, it is the brokers who face a more difficult challenge in acquiring new customers.

If you wish to read more please view the Post Magazine Artile

*Taken from the Post Magazine July 2010

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