Local brokers can compete with price comparison sites

The study* of UK consumers’ insurance buying habits reveals that over two-thirds of Brits (70%) buy their insurance online, with 44% of sales being attributed to price comparison sites.

Just over one in five people (12%) use an online broker to buy their cover.

Reasons cited why Brits don’t use their local broker for insurance included:

many felt it was cheaper to buy via a price comparison site (44%) even though most brokers will have local deal price matching or even a bettering of like-for-like pricing online;
nearly a third of those surveyed not knowing who their local broker was.

Jason Hulott, from Speedie Consultants , who commissioned the survey, said: “When it came to reasons why people bought insurance from a particular provider, the main two elements were price (54%) and quality of cover (24%).  These are two things all local brokers can compete on or provide if only their local customer base knew that they typically have price match offerings.

“It is time the local broker started to look at their marketing efforts in order to compete locally – online is a great way to attract local customers using regional and geographic targeting, and by engaging in social media”.