Car Insurance Aggregators Market Expected to Reach $17.9 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Car Insurance Aggregators Market," The car insurance aggregators market was valued at $3.7 billion in 2021, and is estimated to reach $17.9 billion by 2031, growing at a CAGR of 17.5% from 2022 to 2031.

An insurance aggregator also known as an agency network or cluster, is a group of independent agencies that band together to combine premiums, giving its members the scale and advantages that are usually only available to the largest agencies. Furthermore, car insurance aggregators earn a commission from insurance companies when a consumer purchases a policy through their platform. Thus, the use of car insurance aggregators has gained popularity in recent years as consumers seek to save time and money by shopping for car insurance policies online.

There are several major car insurance aggregators market trends such as there is a growing demand for online comparison and purchasing of insurance policies. Consumers are increasingly using digital channels to research and buy insurance policies, and aggregators are well-positioned to cater to this trend. Further, there is a rise in the adoption of advanced analytics and data-driven technologies by aggregators. This allows them to offer personalized and targeted insurance policies to consumers based on their individual risk profiles and driving habits.

Moreover, there is a move towards offering value-added services beyond traditional insurance policies. Best car insurance aggregator are increasingly offering services such as breakdown cover, legal assistance, and emergency assistance, which can enhance the overall customer experience and loyalty. Finally, there is an increased regulatory scrutiny and pressure on aggregators to ensure transparency, fairness, and compliance with regulations in the insurance market.

Furthermore, major market players have undertaken various strategies to increase the competition and offer enhanced services to their customers. For instance, in October 2022, Compare.com, one of the largest car insurance comparison websites in the US, announced that it has been acquired by digital insurance platform Gabi. This deal aims to strengthen Gabi's position in the car insurance market and provide consumers with more options for comparing and purchasing insurance policies online. Therefore, adoption of such strategies boosts the growth of the car insurance aggregators industry.

On the basis of application, the personal segment is the highest growing segment. This is because there is an increasing demand for personalized and affordable insurance policies, and car insurance aggregators have become the go-to solution for customers looking to compare and purchase car insurance policies online. However, the commercial segment is considered to be the fastest growing segment during the forecast period. This is because as businesses continue to prioritize cost savings and risk management, the demand for specialized and tailored insurance solutions will likely increase, presenting further opportunities for car insurance aggregators to differentiate themselves and capture market share.

By region, North America attained highest growth in 2021. This is because the car insurance aggregators market in North America is driven by factors such as the increase in use of smartphones and the internet, rise in demand for online services, and increase in awareness about the benefits of using aggregators to purchase car insurance policies. However, the Asia-Pacific region is considered to be the fastest growing region during the forecast period. This is attributed to the fact that the car insurance aggregator market in Asia-Pacific has witnessed significant growth in recent years, driven by increase in internet penetration, developments in online sales channels, and surge in demand for transparent and convenient insurance products.

The COVID-19 pandemic has had a significant impact on the car insurance aggregators market growth, which allows consumers to compare different car insurance policies from various providers. Moreover, with the outbreak of the virus, many people have had to make changes to their driving habits, such as working from home and reducing their travel. As a result, the demand for car insurance has decreased, and many insurance companies have reduced their premiums to stay competitive. This has led to a decrease in revenue for car insurance aggregators as they earn a commission from the sale of insurance policies. Additionally, the pandemic has caused financial hardship for many individuals, which has led to them being more price-conscious when purchasing insurance policies. This has put pressure on car insurance aggregators to offer the best deals possible to their customers.

Furthermore, the pandemic has also led to changes in the way car insurance is purchased, with many people now opting to buy insurance policies online rather than in-person. This has created an opportunity for car insurance aggregators to expand their online presence and reach a wider audience. Overall, while the COVID-19 pandemic has had a negative impact on the car insurance aggregators market, it has also presented opportunities for these companies to adapt and innovate in response to changing consumer needs and preferences.

Key Findings of the Study

• By insurance type, the comprehensive car insurance segment led the car insurance aggregators market size in terms of revenue in 2021.
• By enterprise size, the large enterprises segment led the car insurance aggregators market share in terms of revenue in 2021.  
• By region, North America generated the highest revenue in 2021.

The key players profiled in the car insurance aggregators market analysis are Comparepolicy.com, Gabi, Girnar Insurance Brokers Pvt. Ltd. (InsuranceDekho), Insurance Zebra, Insuranks.com, Insurify, Inc., Kweeder, NerdWallet, Inc., Policybazaar.com, and Turtlemint. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.