Monday 19th June 2006
Brokers who are not able to operate via the web will increasingly struggle for business, a financial research company has said.
Web comparison sites like KnowYourMoney.com are leading a change in distribution patterns that will force providers to work harder to win customers, a report from Defaqto suggests.
Predicting changes in the house insurance market over the next two to three years, Defaqto criticises some insurance companies for their "price is everything approach".
Concentrating the market solely on how much insurance costs, rather than quality of services or product features, makes it more difficult for the consumer to distinguish overall value, the report argues.
"This is a tough market where success will require insurers to increasingly tailor their products to meet customer needs," commented Defaqto’s head of general insurance Brian Brown.
"We can expect to see distribution patterns change as insurers try to reduce costs.
"However, the use of web aggregators (comparison sites offering quotes from many insurers) means that individual insurers will have to work harder to attract and retain customers."
Moneyfacts.co.uk found this week that rather than being a simple rate tart society – with consumers flitting from one cheap deal to another - half of those surveyed had changed their savings provider on the basis of bad service alone. 
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