The new General Insurance Pricing Practices (GIPP) rules are set to come into force at the start of 2022, and they could represent a seismic shift for the UK insurance market as consumers increasingly shop around for better deals at renewal. This will be particularly hard felt in the highly competitive motor and home insurance markets where price is the key determinant for many individuals.
While this does present additional opportunities for brokers looking to secure new business, those left reliant on the aggregator channel could find themselves having their business volumes dictated to them by the marketing activity of the aggregators. This also restricts them to the cost-per-sale pricing model favoured by the PCWs, and unfortunately too many brokers continue to be over-reliant on third parties such as price comparison websites.
Ultimately, this creates a number of challenges for brokers, not least the fact that, faced with a multitude of different broker products, it will ultimately be the aggregator brand that is remembered by the end consumer at renewal.
And with the aggregator holding all the customer data, the broker is then unable to carry out its own direct marketing, making retention at renewal a distant fantasy.
Here at Beyond Clicks we work with our customers to change this and shift the balance of power back towards the broker, whether that be via tailored pay-per-click advertising campaigns, user journey optimisation, or using in-depth competitor analysis to stay one step ahead of competing brands.
Covid-19 Continuing to Add Pressure
The Covid-19 pandemic has been a step change for the industry, and this has exacerbated the dangers of over-reliance on the aggregator distribution channel.
When the first lockdown hit, brokers experienced a 70% reduction in new business volumes, made all the worse by the aggregators and other lead generation companies slashing ad budgets and overall marketing spend – and there is nothing to say such a scenario won’t raise its ugly head again.
The market has picked up since then, but brokers who remain focused on price comparison websites remain at a distinct disadvantage, while those businesses who are in control of their own marketing are able to turn this to their advantage by advertising directly to those customers still looking for insurance products.
By using the services of agencies such as Beyond Clicks, brokers can further leverage the benefits of controlling their own marketing strategies:
Everything we do at Beyond Clicks is based on a scheme profile with a target cost-per-quote and sale for each individual broker, using data to build marketing campaigns targeted at their perfect customer. Essentially, we provide brokers with the marketing blueprint to succeed, and then nurture partnerships with our customers to maintain and build on that success over the long-term.
For any broker looking to explore the benefits of individualised lead generation campaigns, we are also offering brokers a free 30 minute workshop tailored to their business and the marketing opportunities available.
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