Matt McCann


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Matt McCann

  1. 1. Online Comparison and Private Health Insurance Changing consumer trends Matt McCann – iSelect
  2. 2. Strictly Confidential 1 Average weekly time spent online by Australians (1) PwC / Frost & Sullivan, Australian and New Zealand online shopping market and digital insights, July 2012, p.27. (2) Who were surveyed by Nielsen in the Nielsen March 2013 Research. Online Australians defined as an active online user (i.e. has used the internet in the last 12 months).  Australians continue to spend more time online than any other media  Online consumption has been surpassing TV consumption since 2007  Almost 90% of Australians who use the internet to purchase products or services are forecast to maintain or increase their online expenditure(1)  Over 70% of Online Australians(2) have used online comparison services at least once 17 hours 36 minutes 23 hours 18 minutes CY09 weekly average CY12 weekly average Online shopping has been part of a fundamental shift in the way many Australians engage with retailers Nielsen March 2013
  3. 3. Strictly Confidential Nine in ten online Australians 18+ …..are likely to use online comparison services for research/comparison during the next 12 months. Nielsen March 2013
  4. 4. Strictly Confidential 3 Saved Money Saved Time Saved Effort Product Better Suited Needs Compared to shopping around ONLINE 86%saved money 96% saved time 94%saved effort 85% found a product that better suited their needs Compared to shopping around OFFLINE 92% saved money 97%saved time 96% saved effort 92%found a product that better suited their needs Why consumers use online comparison………… (Nielsen March 2013 Research. Respondents had previously used an online comparison service to research, compare or purchase products)
  5. 5. Strictly Confidential 57% 42% 35% 28% 28% 28% 23% 20% 19% 18% 15% 12% 11% 10% 10% 8% 7% 6% 5% 5% 5%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% YouCompareGroup WhistleOut AussieHomeLoans RateCity FinderGroup Mozo CanstarGroup CaptainCompare/ ComparetheMarket Choosi CompareBroadband RateDetective Switchwise MortgageChoice EnergyWatch MoneyBuddy OneBigSwitch ElectricityWizard eChoice Note: Percentages calculated based on web visit data sourced from Hitwise, April 2013, which measures total visits to each website. Online comparison services shown are not intended to be exhaustive and include both category-specific services and multi-category services in categories which iSelect operates that predominantly earn income from the providers of products that they compare, and exclude services that aggregate or “white label” the comparison offerings of external providers. YouCompare Group represents the total visits of and; Finder Group represents the total visits of,,,,,, and; Canstar Group represents the total visits of and; and visits to Captain Compare and Compare the Market have been aggregated as they are both related entitles of A&G Insurance Services Pty Ltd. 4  The Australian online product comparison sector is fragmented – large number of small-scale participants offering comparison services across a range of underlying product markets  Fragmentation is the result of significant barriers to the achievement of increased scale and profitability  Significant financial investment required to develop marketing capability to attract large volumes of consumers to a comparison service  Systems and manpower required to process large volumes of sales on behalf of Product Providers Highest level of consumer brand awareness amongst Australian online comparison websites (As a % visits to iSelect Group websites for the year ended 31 March 2013) 100% 43% iSelect is a leading Australian online-driven comparison service
  6. 6. Strictly Confidential Our reach is increasing each year………… 8 million visits 5.2m comparisons 1 in 3 Australians 2012
  7. 7. Strictly Confidential ~60% of these customers were ‘NEW’ to Private Health Insurance Nielsen March 2013 In FY12, we completed over 100,000 Private Health Insurance sales
  8. 8. Strictly Confidential 7 New comparison players in the market….. 25% Management estimate of sales attributed to the comparison channel in FY14
  9. 9. Strictly Confidential “…I urge families to shop around for the best health insurance deal…” 8 February, 2013 New voices in competition and comparison “…Families can find the best deal by shopping around…” The Hon. Tanya Plibersek MP - Establishment of the Premiums & Competition Unit (PACU)
  10. 10. Strictly Confidential 9 (1) iSelect currently operates an E2E comparison model across the majority of its business units. Money and Broadband are exceptions which operate under a lead generation business model. iSelect will work towards transitioning these business units to an E2E business model over time. Our model has driven our success…….
  11. 11. Strictly Confidential Customers love the experience -20 -10 0 10 20 30 40 50 60 70 iSelect Banking Health insurance Net Promoter Score (NPS) NPS
  12. 12. Strictly Confidential Thank you