There is also an increasing advisory layer to the aggregator offering, where rather than just deliver hard-won leads to insurers, they operate like a broker making recommendations—one of many potential avenues that brings higher risks, and higher technological barriers, but potentially higher margins as well.
As in parallel examples of technological disruption, insurtechs and other players in the insurance space have found success by tackling niche market segments the incumbents have traditionally avoided—perhaps where the propensity for risk is higher, or the potential for margins are slimmer, for example for younger claimants.
Alongside the increased risks unique to a segment like this, there comes opportunities: younger demographics put a premium on better customer experience, are often potentially overcharged for car insurance, will often opt for digital solutions over traditional methods, and generally lack the brand loyalty that incumbents enjoy from older demographics. With that in mind, we were tasked by GoCompare to explore if and how they could unlock customer segments like this one.