What is an Insurance Aggregator?

Understand what type of insurer you are using. Is the aggregator right for you?

The word aggregator simply means an organization that collects information from other businesses and then places it on one website. This may be used by a number of industries as an effective way of increasing leads and referrals.

When it comes to the insurance industry the aggregator plays a huge part in attracting potential clients to one point of contact, this makes the task of finding insurance quotes a lot simpler for the consumer as they need not trawl around websites applying for quotes individually which can be a very time consuming exercise.

So what does the aggregator get out of this?

Well, the aggregator charges a referral fee to all insurers or agents that wish to participate in using the website, this participation allows the insurer to widen its capture rate of the potential market as the more people obtaining a motor insurance quotation, the more people are likely to insure with them.

As you can well imagine there has been a massive surge in the insurance aggregator market as it is a cost effective way for the insurers to gain business. And with both sides collaborating the intention would be to become an insurance one stop shop for everyone. The only stumbling block is that the aggregator is designed to fit a wide range of basic criteria and so is constrained if required to offer a more complex and bespoke service to a particular customer profile. This is where a speacialised agent would be more appropriate. However the aggregator system works well for the masses.

So does the rise of the aggregator mean the end of the broker?

Not at all. In fact the aggregator can be used as a beneficial selling aid with brokers able to link into aggregator sites to help give the consumer a better understanding of the product on offer. Let’s face it we all want competitively priced insurance, but what we don’t want is to buy a cheap product that doesn’t give us the cover required from our insurance policy.

If you would like to know more about Heritage Car Insurance or would like a motor insurance quotation simply call us on 0121 248 9229 or arrange a callback.

Read more about Heritage Classic Car Insurance and our admin fees. Why we are being transparent and what we believe in.

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