Online Auto Insurance
Presented to IIABA ACT
Susan Engleson, Senior Director | September 27, 2013
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Proprietary.
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provides Analytics for a Digital World™
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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
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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
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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.
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+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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Proprietary.
But many consumers quote online and buy offline…
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…Most often with a local agent in person.
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That said, the tides are shifting
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Consumers are warming to the idea of buying online
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Direct (online + phone) is gaining on local agents
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Proprietary.
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
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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
© comScore, Inc.
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.
© comScore, Inc.
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:
section on the Vehicle tab
Travelers
IntelliDrive
On the quote submit page (select quotes only)
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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 – sengleson@comscore.com,
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.
38