Online Auto Insurance - independentagent.com

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Online Auto Insurance . ... Q1 11 – usaa.com, directgeneral.com, farmers.com, unitrindirect.com, ... can get an auto quote to add on to homeowners .
Online Auto Insurance

Presented to IIABA ACT

Susan Engleson, Senior Director | September 27, 2013

© comScore, Inc.

Proprietary.

comScore is a leading internet technology company that provides Analytics for a Digital World™

NASDAQ

SCOR

Clients

2,100+ Worldwide

Employees

1,000+

Headquarters

Reston, Virginia, USA

Global Coverage

Measurement from 172 Countries; 44 Markets Reported

Local Presence

32 Locations in 23 Countries

Big Data

Over 1.5 Trillion Digital Interactions Captured Monthly

© comScore, Inc.

Proprietary.

V0113

2

comScore 2 Million Person Global Panel Comprehensive View of Digital Consumer Behavior Online Advertising

Website and App Usage

Video PC

TV

Gaming

Server

E-Commerce

Search Smart phone

POS Tablet

Online Behavioral Profiles

© comScore, Inc.

Proprietary.

Demographic Profiles

V0113

3

Broader Context

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Proprietary.

In the past 12 months, ownership of smartphones has risen from 47% to 59% among those with a mobile device in the U.S. Smartphone Growth Over the Past Year

80%

Growth of U.S. Smartphone Installed Base

170

150

Mobile Financial Services Penetration of Smartphone Owners

70%

59%

60%

Not Smartphone 50%

130

45%

43%

40% 110

47% 30%

Smartphone 90 20% 70

10% Smartphone Penetration by Month:

© comScore, Inc.

Proprietary.

Source: MobiLens™ : 3-mth rolling averages

Jun-13

May-13

Apr-13

Mar-13

Feb-13

Jan-13

Dec-12

Nov-12

Oct-12

Sep-12

Aug-12

0% Jul-12

47% 49% 50% 51% 52% 53% 54% 55% 56% 58% 58% 59% 59%

50

Jun-12

# Phone Users (Millions)

Growth of U.S. Smartphone Installed Base

5

Smartphones and Tablets have driven a doubling of time spent with digital media over past 3 years Total Digital Media Time Spent (Billions of Minutes) by Platform Source: comScore Media Metrix Multi-Platform, U.S., May 2013 vs. May 2010

+93%

Tablet Smartphone

100

381

Desktop

+370%

81

477

416

May 2010 U.S.

© comScore, Inc.

+15%

May 2013 U.S.

Proprietary.

6

Overall desktop audience is flattening, while mobile is steadily growing - more people are engaging on multiple platforms Total Digital Populations (000) by Platform Source: comScore Media Metrix Multi-Platform, U.S., Feb-2013 – Jun 2013 250,000

Desktop Audience Trend 200,000

150,000

100,000

50,000

0 Feb-2013

Mar-2013

Apr-2013

May-2013

PC UV (000)

© comScore, Inc.

Proprietary.

Jun-2013

Mobile UV (000)

Overlapped UV (000)

7

One third of the average retailer’s monthly web site visitors now arrive exclusively via mobile devices Selected Leading Retailers: Total U.S. Digital Population Unique Visitors (000) by Platform Source: comScore Media Metrix Multi-Platform, U.S., June 2013

0

50,000

100,000

150,000

149M

Amazon Sites

91M

eBay

59M

Wal-Mart Apple.com Sites

55M

Target Corp.

37M

Best Buy Sites

28M

The Home Depot Etsy.com

25M 19M

Lowes.com

18M

Sears.com

18M PC Only © comScore, Inc.

Proprietary.

The average Top 50 retailer extends its desktop audience by

54% via mobile channels

PC + Mobile

Mobile Only Note: Mobile = Smartphone + Tablet

8

Shopping & Buying Insurance

Subtitle

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Proprietary.

Consumers are going online to quote…

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Proprietary.

…Even those who quote on the phone and with agents

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But many consumers quote online and buy offline…

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…Most often with a local agent in person.

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Proprietary.

That said, the tides are shifting

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Proprietary.

Consumers are warming to the idea of buying online

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Proprietary.

Direct (online + phone) is gaining on local agents

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The Online Picture

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Proprietary.

Online Insurer Quotes Decreased 4% Y/Y In 2012, With Over 32 Million Annual Submits

Annual Quotes Submitted – Insurers Only (in Millions) Y/Y % Change

+16%

+20%

+19%

+0%

+5%

+1%

-4% 34.1

32.6

14.5

15.6

16.5

16.0

17.6

17.1

17.6

16.6

2009

2010

2011

2012

26.9

26.9 22.4

9.5

32.7

32.1

13.3

13.2

13.8

2008

11.7

9.8

10.7

13.6

2005

2006

2007

Q1/Q2

Q3/Q4 *Additional

© comScore, Inc.

Proprietary.

Insurance sites were included in the insurance visitor set: Q1 07 – 21st.com, TheHartford.com Q1 08 – LibertyMutual.com, TheGeneral.com Q1 09 – travelers.com, safeauto.com Q1 11 – usaa.com, directgeneral.com, farmers.com, unitrindirect.com, amica.com, calif.aaa.com

Top Insurers Overall and for Online Quotes 2012 % of US Auto Insurance Premiums State Farm

17.9%

Allstate

10.2%

GEICO

6.0%

Liberty Mutual

The Hartford

4.8% 4.1% USAA – 4.9% Share 2.0% 1.3%

Source: AM Best Proprietary.

28.8%

Progressive

22.8%

21st Century

4.0%

Liberty Mutual

3.2%

Nationwide

3.9%

The Hartford Source: comScore, Inc.

© comScore, Inc.

19.9%

GEICO

Travelers

American Family – 1.9% Share

5.6%

Allstate/Esurance

8.4%

Farmers/21st

Travelers

State Farm

9.7%

Progressive

Nationwide

2012 % of Online Insurer Quotes Submitted

1.7% 2.9%

GEICO captured 29% share of Insurer Submitted Quotes in 2012

Yearly Online Auto Insurance Industry: Insurer Share of Submitted Quotes 2% 2%

2% 3%

2% 1% 7%

8%

8%

9%

15%

38%

15%

33%

2% 2% 5% 4%

16%

8%

2% 3% 3% 2% 4% 3% 8%

13%

14%

3% 3% 4% 3% 7% 4% 6% 12%

1% 3% 2% 3% 4% 5% 5% 4% 6%

2% 2% 3% 3% 4% 4% 5% 6% 6%

13%

14%

travelers.com safeauto.com thehartford.com libertymutual.com nationwide.com aig/21st.com

30%

30%

29%

30%

27%

23%

thegeneral.com statefarm.com allstate.com

29%

2005

31%

2006

32%

2007

31%

2008

© comScore, Inc.

Proprietary.

30%

2009

28%

2010

27%

2011

29%

2012

esurance.com progressive.com/progr essiveagent.com geico.com

Annual Policies Purchased were flat Y/Y in 2012. Market is dominated by GEICO and Progressive. Annual Policies Purchased (Millions) 35%

58%

37%

22%

8%

0%

6%

3%

1.5

1.6

1.5

1.6

1.5

2010

2011

2012

1.3

1.4

1.5

2009

1.1

1.2 0.9 0.3

0.6

0.4

0.4

2004

2005

0.7

2006

1.0

1.2

2007

2008

Q1/Q2 © comScore, Inc.

Proprietary.

Q3/Q4

GEICO, State Farm, Progressive most visited sites Online Auto Insurers: Unique Visitors

(in Millions)

Q1 2013

Q2 2013

15.7 16.3 13.313.6 9.4 8.8 6.5

7.5 3.5 3.9 4.1 3.6 3.3 3.2 2.9 2.2 2.7 1.8 1.9 1.7 1.0 1.0 0.6 0.3

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Proprietary.

PC Data Only

22

State Farm ranked among the top 10 U.S. Online Display Advertisers in 2012

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Proprietary.

Amfam saw a 26% increase in traffic Y/Y with 1.5 million visitors in Q4 2012 Unique Visitors to Expanded Set Insurer Sites Y/Y (in Thousands) 6,803 7,149

usaa.com 1,788 1,858

farmers.com

1,232 1,547

amfam.com 552

safeco.com csaa.com

*

mercuryinsurance.com directgeneral.com infinityauto.com erieinsurance.com amica.com gmacinsurance.com insuranceagents.com

*

commerceinsurance.com titaninsurance.com

*

auto-owners.com unitrindirect.com

646 703

*

542 444 389 297 296 349 350 424 366 244 109 240 265

Q4 2011 Q4 2012

146 111 89 213 148 149

*Farmers.com includes data to farmers.com as well as farmersagent.com * = denotes small sample

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Proprietary.

PC Data Only

While Liberty Mutual Insurance saw a decrease Q/Q in online display ad impressions in Q2 2013, Safeco saw a significant increase Liberty Mutual/Safeco Online Display Ad Impressions

Liberty Mutual Group

(in Millions)

Liberty Mutual Insurance

Safeco

1,404 1,220 1,099 957 883

842

815 709

599 523 422 348 254

238

44 Q2 12

Q3 12

© comScore, Inc.

Q4 12

Proprietary.

Q1 13

Q2 13

25

Safeco saw a significant Q/Q increase in unique visitors in Q2 2013 with over 950K Safeco Unique Visitors

(in Thousands)

956

646

679

Q4 12

Q1 13

580

Q3 12

© comScore, Inc.

Proprietary.

*Denotes small sample size

Q2 13

26

Safeco’s increase in traffic Q/Q is due in part to several new landing pages in Q2 that had significant traffic

There were 82K unique visitors to the Save When You Switch landing page and 55K to the Accident Forgiveness page in Q2 2013, both of which had very minimal traffic in Q1.

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Proprietary.

27

Travelers was relatively flat in quotes submitted Q/Q, but has pulled back in search, display, and affiliates Unique Visitors (MM) and Quotes Submitted (000) Unique Visitors

Quotes Submitted

2.4

3 2 2 1 1 0

1.9

1.8 132

114 Q3 12

1.7

76 Q4 12

71

Q1 13

250 200 Q/Q 150Chg. Travelers: 100 -6% Industry: 50 -2% 0

Q2 13

Online Display Ad Impressions (in Billions) 2.6 2.1 1.6 0.9 0.3 Q2 12

Q3 12

© comScore, Inc.

Q4 12

Proprietary.

Travelers

Q1 13

Q2 13

28

How do independent agents win?

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Proprietary.

Shoppers want to get multiple quotes…

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Proprietary.

30

Independent Agents Provide That

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Proprietary.

31

People (23% unlike to purchase online in the future) want to talk to someone

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Proprietary.

32

Agents do still need to be price competitive!

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Proprietary.

33

UBI, Bundling, Servicing

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Proprietary.

UBI positioning within the quote process Insurer

Device

Positioning within Quote Process

Progressive

SnapShot

At the Final Details step before the Quote Submit page Also a separate Snapshot Test enrollment process

State Farm

Drive Safe & Save

Step: Vehicles Section: Add Vehicles

Allstate

Drive Wise

Step: Discounts Section: Additional Discounts

Esurance

DriveSense

Step: Primary Driver Information – Continued Section: Discounts

Esurance (PAYD)

Drive Less Save More

Step: Discounts & Savings Section: Discounts & Savings

Nationwide

SmartRide

Step: Discounts Section: Discounts

The Hartford

TrueLane

Step: Vehicle Info section on the Vehicle tab Section:

Travelers

IntelliDrive

On the quote submit page (select quotes only)

© comScore, Inc.

3rd

Proprietary.

Insurers who offer online bundling Bundle Opportunities

Bundle From Auto

Bundle From Home/Renters

Outcome

Allstate

Auto + Renters

Yes – Discounts page; page of renters questions after Discounts within the auto process

Yes (Renters) – from quote initiation screen (taken directly to auto process first)

Buy both policies

Esurance

Auto + Renters (RentersPlus endorsement on Auto Policy)

Yes – quote summary page (certain states only); additional renters questions asked during policy purchase

Yes (Renters) – Landing page before quote initiation screen (taken directly to auto process first)

Buy both policies

Progressive*

Home/Renters + Auto

Yes – pop-up before quote initiation page; complete auto quote and then home/renters quote

No – Bundle discount reminder displayed in the side panel throughout the quote process, but not option to add auto

Buy both policies

Auto + Home

Yes – quote summary page (certain states only); shoppers continue to get a homeowners quote and receive a bundled price for both policies

No – standalone homeowners quoting not available online

Auto + Home/Renters

Yes – quote summary page (certain states only); shoppers can add renters insurance by answering 2 additional questions

Yes – quote summary page (certain states only); shoppers can get an auto quote to add on to homeowners

Auto + Home/Renters

Yes – Shoppers who elect to add home or renters insurance to their auto quote automatically receive a discount on auto

Yes – quote summary page; shoppers continue from the homeowners process to get an auto quote

Insurer

The Hartford

Liberty Mutual

Farmers

© comScore, Inc.

Proprietary.

Call agent to bundle

Call agent to bundle

Call agent to bundle

*Progressive also has a “Bundle and Save” option on its homepage with the option to get a bundled quote, starting with the auto process

GEICO leads in online self-service Overall Policy Management Content

Unique Visitors (In Thousands)

Q1 2013

7,889

Q2 2013

7,208

4,252

4,658

2,888 2,887

2,523 2,564

748 855

GEICO

Progressive State Farm

Allstate

Liberty Mutual

2%

14%

745 648

666

588 611

438 457

Nationwide The Hartford

Esurance

21st

673

Q/Q % Change 9%

10%

0%

© comScore, Inc.

Proprietary.

-13%

-1%

4%

4%

37

Contact & Additional Information

Susan Engleson – [email protected], 703.234.2625 2013 Online Auto Insurance Report being released next month! comScore Thought Leadership  Digital Future in Focus  Mobile Future in Focus  State of Digital – Q4 2012  State of Retail – Q2 2013

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Proprietary.

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