2022
9
UK Price Comparison Sites in Financial Services Market Report 2022
2022-10-09T04:06:52+01:00
OX1102605
2195
156374
[{"name":"Financial Services","url":"https:\/\/store.mintel.com\/industries\/finance\/financial-services"}]
Report
en_GB
“Regulatory changes will shift market dynamics in the long term. For now, rising inflation and increasing prices are major concerns for consumers who are feeling the squeeze from the higher…

UK Price Comparison Sites in Financial Services Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK Price Comparison Sites in Financial Services Market Report 2022 identifies consumers’ attitudes towards using UK price comparison sites, barriers to usage and conversion rates from research to sales for the UK price comparison market. This report covers the UK price comparison sites market size, market forecast, market segmentation and trends in the UK price comparison market.

 

Current Landscape of the UK Price Comparison Market

Rising inflation is eroding purchasing power. As households have to grapple with higher costs for everyday essentials, UK price comparison sites have a significant role in helping cost-conscious consumers to find the most cost-effective products.

Mintel’s price comparison sites market research identifies that the vast majority of users report very positive experiences with UK price comparison sites. However, some barriers persist, with a significant minority who don’t trust aggregators to find the best price, suggesting that the UK price compassion market still has scope to improve transparency.

 

UK Price Comparison Sites Market Share and Key Industry Trends

Mintel’s price comparison sites market research indicates that the recent FCA legislation introduced to ensure renewing customers are offered the same price as new customers across motor and home insurance is one of the biggest threats to the UK price comparison market in the long term. For now, product research and purchasing in these two core markets remain consistent with previous years, suggesting that renewal behaviour is deeply ingrained.

  • 63% of UK consumers have used a price comparison site to research their insurance.
  • 80% of those who researched insurance using a price comparison site also completed a purchase.
  • 93% of UK consumers believe that price comparison sites are easy to use.
  • 90% of UK adults use comparison sites to get the cheapest deal possible.

 

Future UK Price Comparison Sites Trends

The pressure on household finances creates an opportunity for the UK price comparison market to assist consumers in managing their household finances. Outside of their core – car and home insurance – products, UK price comparison sites have an opportunity to increase engagement across a broader range of products, such as credit cards and pet insurance. As a result, they can position themselves as partners during challenging times by delivering a best-in-class digital experience.

To discover more about the UK Price Comparisons Sites in Financial Services Market Report 2022, read our UK Brand Overview: Finance 2022, or take a look at our extensive Financial Services Market Research.

 

Quickly Understand

  • Consumer use of UK price comparison sites for financial services products and conversion rates from research to sales.
  • Provider use and consumer perception of brands operating in the UK price comparison market.
  • Behaviours and attitudes towards UK price comparison sites.
  • Barriers to usage in the UK price comparison market.
  • Interest in UK price comparison sites incentives.
  • Explores price comparison sites market share and UK price comparisons sites market size.

 

Covered in this Report

Products: Car insurance, travel insurance, pet insurance, life insurance, home building or contents insurance, current accounts, saving accounts, credit cards, mortgages, personal loans, travel money, and income protection.

Brands: comparethemarket.com, Gocompare.com, Moneysupermarket.com, confused.com, travelsupermarket.com, Uswitch.com, Money.co.uk, Mustard.co.uk, Moneysavingexpert.com.

 

Expert Analysis from a Specialist in the Finance Sector

This report, written by Stefania Apostol, a leading analyst in the financial services industry, delivers in-depth commentary and analysis to highlight current UK price comparison market trends and add expert context to the numbers.

Rising inflation and increasing prices are major concerns for consumers who are feeling the squeeze from the higher cost of living. Amid this challenging economic climate, PCWs will have a significant role to play in helping cost-conscious consumers navigate the cost of living crisis by helping them to find the best price for the products they need and even supporting them to manage their household finances.”

Stefania Apostol - Financial Services Analyst

Stefania Apostol
Financial Services Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Market context
    • Products covered in this Report
  2. Executive Summary

    • The market
    • Regulatory intervention impacts motor and home insurance markets
    • Consumers face inflationary pressure…
    • … and an increasing cost of living
      • Figure 1: Issues faced in the last two months, 2022
    • Companies and brands
    • Compare the Market is the most used PCW for finance…
      • Figure 2: Price comparison sites used to research financial services products in the last 12 months, 2022
    • …and stands out as a fun brand that rewards loyalty
      • Figure 3: Brand associations, 2022
    • The consumer
    • Insurance products continue to drive customers to PCWs
      • Figure 4: Financial services products researched using a price comparison site, 2022
    • Car insurance conversion rates remain high
      • Figure 5: Products purchased after researching them using a price comparison site, 2022
    • PCWs continue to offer strong convenience benefits
    • Price remains the key consideration
      • Figure 6: Behaviours and attitudes towards price comparison sites, 2022
    • More than a quarter of non-PCW users prefer to research directly
      • Figure 7: Barriers to using price comparison sites, 2022
    • More than half of adults would be encouraged to use a PCW by a lowest price guarantee
      • Figure 8: Potential incentives to use a price comparison website, 2022
  3. Issues and Insights

    • Rising inflation will bring PCWs to the fore
    • FCA loyalty pricing reform will change market dynamics
  4. Market Environment

    • Regulatory intervention impacts motor and home insurance markets
    • Travel insurance is expected to recover…
    • …while pet insurance could struggle
    • Savings intentions remain high
      • Figure 9: Saving intentions, 2019-22
    • Demand for consumer credit returns to pre-pandemic levels
  5. Market Drivers

    • Consumers face inflationary pressure…
    • …and despite Government support, energy prices are still a major concern
      • Figure 10: CPI, 12-month rates, 2016-22
    • …and an increasing cost of living
      • Figure 11: Issues faced in the last two months, 2022
    • Financial confidence continues to decline
      • Figure 12: Financial Confidence Index, 2019-22
    • Rising interest rates will create engagement opportunities for PCWs
      • Figure 13: Bank of England base rate and monthly interest rates for credit cards and selected mortgage, personal loan and household deposit, 2017-22
    • Two-thirds of adults are managing finances via smartphones
      • Figure 14: Smartphone activities, 2019-22
  6. Regulatory and Legislative Changes

    • FCA loyalty pricing reforms take effect
    • FCA introduces a new Consumer Duty
  7. Market Share

    • Compare the Market is the most used PCW for finance…
    • …followed by GoCompare and MoneySuperMarket
      • Figure 15: Price comparison sites used to research financial services products in the last 12 months, 2022
    • Over half of PCW users prefer to use multiple sites
      • Figure 16: Number of price comparison sites used to research financial services products in the last 12 months, 2022
  8. Competitive Strategies and Launch Activity

    • PCWs ramp up customer perks…
    • …and offer complementary tools
    • MoneySuperMarket acquires Quidco
    • MoneySavingExpert launches Compare+ car insurance
    • VU Compare claims to offer a comprehensive suite of comparison facilities for motorists
  9. Advertising and Marketing Activity

    • Adspend remains steady
      • Figure 17: Total above-the-line, online display and direct mail advertising expenditure on price comparison sites in financial services, 2017/18-2021/22
    • PCWs continue to focus on general insurance
      • Figure 18: Total above-the-line, online display and direct mail advertising expenditure on price comparison sites in financial services, by product category, 2021/22
    • Compare the Market maintains its position as the largest advertiser
    • MoneySuperMarket introduces the MoneySuperSeven
    • GoCompare and Confused.com decrease adspend
      • Figure 19: Total above-the-line, online display and direct mail advertising expenditure on price comparison sites in financial services, by advertiser, 2017/18-2021/22
    • Nielsen Ad Intel coverage
  10. Brand Research

    • Brand map
      • Figure 20: Attitudes towards and usage of selected brands, 2022
    • Key brand metrics
      • Figure 21: Key metrics for selected brands, 2022
    • Brand attitudes: MoneySuperMarket is perceived as a brand with a good reputation
      • Figure 22: Brand associations, 2022
    • Brand personality: Compare the Market boasts a fun image
      • Figure 23: Brand personality – macro image, 2022
    • MoneySavingExpert is viewed as honest
      • Figure 24: Brand personality – micro image, 2022
    • Brand analysis
    • Compare the Market stands out as a fun brand that rewards loyalty
    • MoneySavingExpert is seen as honest and helpful
    • MoneySuperMarket is viewed positively…
    • …alongside GoCompare
    • Confused.com lacks commitment and differentiation
    • Uswitch is less known
  11. Product Research

    • Insurance products remain the most searched-for on PCWs
      • Figure 25: Financial services products researched using a price comparison site, 2022
    • Younger generations are more likely to use PCWs to research credit products
      • Figure 26: Consumer credit products researched using a price comparison site, by generation, 2022
    • Most PCW users researched one or two products in the last year
      • Figure 27: Number of financial services products researched through a price comparison site, 2022
  12. Product Purchasing

    • Car insurance continues to have the strongest conversion rate
    • Purchase of travel insurance bounces back
    • Credit products have lower conversion rates
      • Figure 28: Products purchased after researching using a price comparison site, 2022
  13. Behaviours and Attitudes towards Price Comparison Sites

    • PCWs offer convenience
    • Price remains a key consideration
      • Figure 29: Behaviours and attitudes towards price comparison sites, 2022
    • Credit product researchers use PCWs to get a better deal
      • Figure 30: Selected behaviour towards price comparison sites, by financial services products researched using a price comparison site, 2022
    • PCWs help Millennial mothers to make an informed decision
      • Figure 31: Selected behaviours towards price Comparison Websites in Financial Services – CHAID – Tree output, 2022
  14. Barriers to Using Price Comparison Sites

    • Non-PCW users prefer to research products directly
      • Figure 32: Barriers to using price comparison sites, 2022
    • Increase transparency on market coverage
      • Figure 33: Barriers to using price comparison sites, by barriers to price comparison sites, 2022
    • Offer more personalised results…
    • …and improve trust
      • Figure 34: Potential incentives to use a price comparison website, by barriers to usage of price comparison sites, 2022
  15. Interest in Price Comparison Sites’ Incentives

    • More than half of adults would be encouraged to use a PCW by the lowest price guarantee
      • Figure 35: Potential incentives to use a price comparison website, 2022
    • Gen Zs are more likely to be encouraged to use a PCW by a safe client portal
      • Figure 36: A client portal as incentive to use a price comparison website, by generation, 2022
    • Price incentives plus the option to compare terms and conditions have the widest appeal
      • Figure 37: Interest in price comparison sites’ incentives – TURF Analysis, 2022
  16. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
    • CHAID analysis methodology
      • Figure 38: Price Comparison Websites in Financial Services – CHAID – Table output, 2022
    • TURF analysis methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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