Online Auto Insurance

© comScore, Inc. Proprietary.

Online Auto Insurance

Presented to IIABA ACT

Susan Engleson, Senior Director | September 27, 2013

© comScore, Inc. Proprietary. 2

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

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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

V0113


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

OnlineAdvertising

Video

Search

Demo-graphicProfiles

OnlineBehavioral

Profiles

E-Commerce

Website and App Usage

PC

Smartphone

TV

Tablet

Gaming

POS

Server

V0113

© comScore, Inc. Proprietary.© comScore, Inc. Proprietary.

Broader Context


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

Growth of U.S. Smartphone Installed Base Smartphone Growth Over the Past Year

Source: MobiLens™ : 3-mth rolling averages

Jun-1

2Ju

l-12

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

Jan-1

3

Feb-13

Mar-13

Apr-13

May-13

Jun-1

350000000

70000000

90000000

110000000

130000000

150000000

170000000

Growth of U.S. Smartphone Installed Base

Smartphone

Not Smartphone

59%

47%

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

Smartphone Penetration by Month:

0%

10%

20%

30%

40%

50%

60%

70%

80%

43% 45%

Mobile Financial Services Penetration of Smart-

phone Owners


Smartphones and Tablets have driven a doubling of time spent with digital media over past 3 years

May 2010 U.S. May 2013 U.S.

416 477

80.772

381

100

TabletSmartphoneDesktop

+93%

Total Digital Media Time Spent (Billions of Minutes) by PlatformSource: comScore Media Metrix Multi-Platform, U.S., May 2013 vs. May 2010

+370%

+15%


Overall desktop audience is flattening, while mobile is steadily growing - more people are engaging on multiple platforms

Feb-2013 Mar-2013 Apr-2013 May-2013 Jun-20130

50,000

100,000

150,000

200,000

250,000

PC UV (000) PC Audience TrendMobile UV (000) Mobile Audience TrendOverlapped UV (000) PC+Mobile Overlapped Audience

Desktop Audience Trend

Mobile Audience Trend

Overlapped Audience Trend

Total Digital Populations (000) by PlatformSource: comScore Media Metrix Multi-Platform, U.S., Feb-2013 – Jun 2013


Amazon Sites

eBay

Wal-Mart

Apple.com Sites

Target Corp.

Best Buy Sites

The Home Depot

Etsy.com

Lowes.com

Sears.com

0 20,000 40,000 60,000 80,000 100,000120,000140,000160,000

PC Only PC + Mobile Mobile Only

One third of the average retailer’s monthly web site visitors now arrive exclusively via mobile devices

Selected Leading Retailers: Total U.S. Digital PopulationUnique Visitors (000) by Platform

Source: comScore Media Metrix Multi-Platform, U.S., June 2013

The average Top 50 retailer extends its desktop audience by

54% via mobile channels

Note: Mobile = Smartphone + Tablet

149M91M

59M55M

37M28M

25M19M

18M18M


Shopping & Buying Insurance

Subtitle


Consumers are going online to quote…


…Even those who quote on the phone and with agents


But many consumers quote online and buy offline…


…Most often with a local agent in person.


That said, the tides are shifting


Consumers are warming to the idea of buying online


Direct (online + phone) is gaining on local agents


The Online Picture


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

2005 2006 2007 2008 2009 2010 2011 2012

9,779,205.1 10,664,539.8 13,619,421.0 13,785,797.1 17,628,081.8 17,051,400.3 17,551,448.6 16,616,086.2

9,470,100.011,725,672.013,277,940.213,158,274.8

14,512,838.415,571,347.516,546,313.316,045,702.1

Annual Quotes Submitted – Insurers Only (in Millions)

Q1/Q2 Q3/Q4

Y/Y % Change

+16% +20% +0% +19% +1% +5% -4%

22.426.9 26.9

32.1 32.634.1

32.7

*Additional 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

State Farm

Allstate

GEICO

Progressive

Farmers/21st

Liberty Mutual

Nationwide

Travelers

The Hartford

17.9%

10.2%

9.7%

8.4%

6.0%

4.8%

4.1%

2.0%

1.3%

State Farm

Allstate/Esurance

GEICO

Progressive

21st Century

Liberty Mutual

Nationwide

Travelers

The Hartford

5.6%

19.9%

28.8%

22.8%

4.0%

3.2%

3.9%

1.7%

2.9%

Source: comScore, Inc.Source: AM Best

2012 % of Online Insurer Quotes Submitted

2012 % of US Auto Insurance Premiums

USAA – 4.9% Share

American Family – 1.9% Share


GEICO captured 29% share of Insurer Submitted Quotes in 2012

2005 2006 2007 2008 2009 2010 2011 2012

29% 31% 32% 31% 30% 28% 27% 29%

38% 33% 30% 30% 29% 30% 27% 23%

15% 15% 16%13% 14%

12%13% 14%

8% 8% 9%8% 8%

6%6% 6%

2% 3%7% 5% 2% 3%

5% 4%

2% 2% 1% 2% 3% 4%4% 4%

2% 2% 2% 3%2% 3%

4% 4%7%

5% 5%3%

4%4% 6%

3% 3%3% 3%

0.0279496895018544

0.0183091366212555

0.0146944782795296

0.01674497311592

travelers.com

safeauto.com

thehartford.com

libertymutual.com

nationwide.com

aig/21st.com

thegeneral.com

statefarm.com

allstate.com

esurance.com

progressive.com/progressiveagent.-comgeico.com

Yearly Online Auto Insurance Industry: Insurer Share of Submitted Quotes


Annual Policies Purchased were flat Y/Y in 2012. Market is dominated by GEICO and Progressive.

2004 2005 2006 2007 2008 2009 2010 2011 2012

388,672.0 417,718.8 686,161.0 979,013.8 1,177,544.0 1,522,334.3 1,493,522.7 1,566,849.1 1,535,366.0

344,224.8572,011.0

880,647.0

1,166,097.71,143,889.2

1,303,934.11,429,877.31,531,449.01,566,280.0

Annual Policies Purchased(Millions)

Q1/Q2 Q3/Q4

35% 58% 37% 8% 22% 3% 6% 0%


GEICO, State Farm, Progressive most visited sites

Online Auto Insurers: Unique Visitors (in Millions)

PC Data Only

15,739,658.013,267,846.0

9,437,553.0

6,531,099.0

3,527,295.04,144,602.03,313,030.02,886,427.02,693,942.01,873,055.0985,416.0563,459.0

16,272,244.9

13,554,713.9

8,761,497.07,494,177.6

3,920,419.73,607,610.13,237,993.82,187,360.41,780,263.01,653,675.0991,903.7320,162.1

Q1 2013 Q2 2013


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


Amfam saw a 26% increase in traffic Y/Y with 1.5 million visitors in Q4 2012

unitrindirect.com

auto-owners.com

titaninsurance.com

commerceinsurance.com

insuranceagents.com

gmacinsurance.com

amica.com

erieinsurance.com

infinityauto.com

directgeneral.com

mercuryinsurance.com

csaa.com

safeco.com

amfam.com

farmers.com

usaa.com

*

147,904

*

110,502

*

240,112

243,887

424,354

348,834

296,653

443,795

*

645,846

1,547,282

1,857,559

7,149,320

149,280

212,687

88,679

145,568

264,855

108,594

365,811

349,597

295,653

388,765

541,798

702,520

552,454

1,232,079

1,787,835

6,803,162

Unique Visitors to Expanded Set Insurer Sites Y/Y (in Thousands)

Q4 2011Q4 2012

*Farmers.com includes data to farmers.com as well as farmersagent.com

* = denotes small sample

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 (in Millions)

Q2 12 Q3 12 Q4 12 Q1 13 Q2 13

598,992

1,098,822

1,403,763

883,298

1,220,234

348,130

841,883 956,939

814,971 708,611

238,268 254,205

421,550

44,306

522,755

Liberty Mutual Group Liberty Mutual Insurance Safeco


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

Safeco Unique Visitors (in Thousands)

*Denotes small sample size

Q3 12 Q4 12 Q1 13 Q2 13

580,464 645,846 679,159

956,229


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.


Travelers was relatively flat in quotes submitted Q/Q, but has pulled back in search, display, and affiliates

Travelers

Q2 12 Q3 12 Q4 12 Q1 13 Q2 13

1.6

2.62.1

0.90.3

Online Display Ad Impressions (in Billions)

Q3 12 Q4 12 Q1 13 Q2 130

500,0001,000,0001,500,0002,000,0002,500,000

050,000100,000150,000200,000250,000

2,371,735.0 1,772,026

.01,873,055

.0 1,653,675.0

114,287 131,59275,503 70,741

Unique Visitors (MM) and Quotes Submitted (000)

Unique Visitors Quotes Submitted

Q/Q Chg.Travelers: -6%Industry: -2%


How do independent agents win?


Shoppers want to get multiple quotes…


Independent Agents Provide That


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


Agents do still need to be price competitive!


UBI, Bundling, Servicing


UBI positioning within the quote process

Insurer Device Positioning within Quote Process

Progressive SnapShot At the Final Details step before the Quote Submit pageAlso a separate Snapshot Test enrollment process

State Farm Drive Safe & Save

Step: VehiclesSection: Add Vehicles

Allstate Drive Wise Step: Discounts Section: Additional Discounts

Esurance DriveSense Step: Primary Driver Information – ContinuedSection: Discounts

Esurance(PAYD)

Drive Less Save More

Step: Discounts & SavingsSection: Discounts & Savings

Nationwide SmartRide Step: DiscountsSection: Discounts

The Hartford TrueLane Step: Vehicle InfoSection: 3rd section on the Vehicle tab

Travelers IntelliDrive On the quote submit page (select quotes only)


Insurers who offer online bundling

Insurer Bundle Opportunities Bundle From Auto Bundle From Home/Renters Outcome

Allstate Auto + RentersYes – 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

The Hartford 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

Call agent to bundle

Liberty Mutual

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


Farmers 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


*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)

9% 10% 0% 2% 14% -13% -1% 4% 4%

GEICO Progressive State Farm Allstate Liberty Mu-tual

Nationwide The Hartford Esurance 21st

7,208

4,252

2,888 2,523

748 745 673 588 438

7,889

4,658

2,887 2,564

855 648 666 611 457

Q1 2013 Q2 2013

Q/Q % Change


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

mailto:[email protected]

Online Auto Insurance

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