Comscore Reports 24 Percent Growth in Auto Insurance Quotes and 29 Percent Growth in Policies Purchased Online in 2005

Online Auto Insurance Industry Comes Of Age with 2005 Growth Spurt

RESTON, VA. Feb. 21, 2006 – Consumers flocked online to research and purchase auto insurance in 2005 according to an analysis released today by Comscore Networks, the leader in the use of the Internet to measure and understand consumer behavior and attitudes. The Comscore analysis revealed that the total number of auto insurance quotes submitted online increased by 24 percent in 2005 versus the previous year, and insurance policy purchases jumped by 29 percent during the same time period.

“The auto insurance sector has been slow to find its footing online, but grew faster in 2005 than any other financial services category,” said Nicolas Tabbal, vice president of Comscore’s Financial Services division. “Purchasing insurance online is more involved than other financial activities such as paying bills or applying for credit cards. The rapid surge in online auto insurance quotes and purchases in 2005 correlates to a substantial reduction in abandonment rates across insurer and aggregator sites, and confirms consumers’ increased comfort in conducting complex financial transactions online.”

According to Comscore’s proprietary conversion matrix, the average abandonment rate at auto insurer and aggregator sites dropped from 51 percent in 2004 to 44 percent in 2005. Several factors contributed to this forward momentum. Visual and functional upgrades have enhanced insurer sites, improving navigability, ease of use and site customization. For example, on most insurer and aggregator sites consumers can select from a menu of coverage options and receive recommendations tailored to their specific needs and circumstances. Technological innovations such as VoIP and online chat enable consumers to connect directly with insurers at any stage in the process, minimizing consumer frustration and abandonment. As a result, quotes submitted at agent insurer sites increased 75 percent in 2005 compared to the prior year. Direct insurers, who continue to be the largest insurer segment, with 61 percent market share of online quotes, saw a 23-percent increase in quotes submitted in 2005. Quotes submitted at aggregator sites increased by 11 percent.

Comscore’s analysis includes data from three categories of insurers: agent insurers – companies such as Allstate (NYSE: ALL), American International Group (NYSE: AIG), State Farm and Nationwide (NYSE: NFS) that traditionally sell products through a network of licensed agents and are relative newcomers to the online channel; direct insurers such as Esurance (subsidiary NYSE: WTM), GEICO (subsidiary NYSE: BRK-A) and Progressive (NYSE: PGR) who sell directly to the public, rather than operating through an agent network; and aggregator sites such as Answer Financial, Comparison Market, Insweb (NasdaqNM: INSW), Insurecom and NetQuote that gather information, and then refer consumers to one or more insurers.

About the Comscore Financial Services Practice

Within the financial services sector, Comscore’s integrated research methodology allows the firm to provide insight into the behavior and attitudes surrounding consumer activity such as account applications and usage, online bill payments, and purchases of financial products and services.

Using this information, Comscore consultants provide clients with focused analyses and market intelligence to reveal competitive dynamics, deeply understand key customer segments, develop more effective acquisition and retention strategies, and address many other critical issues across offline and online channels.

Comscore is proud to serve the world’s leading financial institutions, including eight of the top 10 U.S. consumer banks and nine of the top 10 investment banks.

About Comscore Networks

Comscore Networks provides unparalleled insight into consumer behavior and attitudes. This capability is based on a massive, global cross-section of more than 2 million consumers who have given Comscore explicit permission to confidentially capture their browsing and transaction behavior, including online and offline purchasing. Comscore panelists also participate in survey research that captures and integrates their attitudes and intentions. Through its proprietary technology, Comscore measures what matters across a broad spectrum of behavior and attitudes. Comscore consultants apply this deep knowledge of customers and competitors to help clients design powerful marketing strategies and tactics that deliver superior ROI. Comscore services are used by global leaders such as AOL, Microsoft, Yahoo!, Verizon, Best Buy, The Newspaper Association of America, Tribune Interactive, ESPN, Fox Sports, Nestlé, MBNA, Universal McCann, the United States Postal Service, Merck and Orbitz. For more information, please visit www.comscore.com.

Press
Bill Daddi
Daddi Brand Communications
646-370-1341
press@comscore.com