Comparison sites focus on commercial insurance

A report published by independent financial research company, Defaqto, shows that 65 per cent of the top 20 financial price comparison websites already provide access to business insurance either as introducers to various online providers, or by providing quotations through a limited panel of insurers .

Mike Powell, Insight Analyst at Defaqto, said “The home and motor insurance markets are already well served by many aggregator websites so inevitably price comparison websites will be exploring new areas to expand their coverage. Small and Medium Enterprise (SME) commercial insurance is ripe for such expansion and they could take a significant market share in its future distribution.”

Mr Powell added that many of the SME insurers have a great deal of work to do if they are to address this potential increase in demand from aggregators.

According to the research, 43 per cent of intermediary insurers do not facilitate online quotations for SME insurance so many will have to make significant investments if they are to cater for online quotations for the less complex risks, as well as providing the required level of e-business facilities.

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