Don't blame the consumer for being disloyal

Car insurance comparison site Gocompare.com has commented on Mintel findings that drivers are more cost conscious and less loyal when it comes to car insurance.

Hayley Parsons, chief executive of Gocompare.com said; "We welcome Mintel's findings and in particular the fact that 77 per cent of consumers say they now shop around before renewing their motor policy. Comparison sites make it easier than ever for consumers to check their renewal against - in the case of Gocompare.com - over 100 other insurance companies. Almost half (49 per cent) of Gocompare.com's customers are in the under 35 age group that Mintel refer to. Young drivers rely on comparison sites more than any age group as they have the most to save by shopping around.

"However, I think we need to be careful not to discourage consumers from actively seeking out the right policy at the right price each year, with talk of ‘disloyal' behaviour towards insurance companies. It isn't a case of being ‘loyal', it is simply common sense. Insurance companies do little to reward loyalty and that is one of the factors driving people to look for a better deal. Thanks to the internet, consumers are now more informed and empowered to make their own decisions and are voting with their feet.

It's time for the insurance industry to stop thinking as separate distribution channels and pull together as one. We need to work together to tackle the inefficiencies that exist within the industry, and stop blaming each other, so that we can ultimately deliver real results for the consumer. The internet has changed buyer behaviour for the better - and forever. Insurance companies need to accept that aggregators are a preferred distribution channel for many consumers and continue to evolve to meet the challenge."