1. Online Comparison
and Private Health
Insurance
Changing consumer trends
Matt McCann – iSelect

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. 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. 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. 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
CreditCard.com.au
MortgageChoice
EnergyWatch
GoSwitch.com.au
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 www.youcompare.com.au and www.broadbandguide.com.au; Finder Group represents the total visits of www.finder.com.au, www.creditcardfinder.com.au, www.broadbandplanfinder.com.au, www.homeloanfinder.com.au,
www.savingsaccountfinder.com.au, www.lifeinsurancefinder.com.au, www.personalloanfinder.com.au and www.mobilephonefinder.com.au; Canstar Group represents the total visits of www.canstar.com.au and www.canstarblue.com.au; 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. Strictly Confidential
Our reach is increasing
each year…………
8 million visits
5.2m
comparisons
1 in 3
Australians
2012

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~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. Strictly Confidential
7
New comparison
players in the market…..
25%
Management estimate of sales attributed to the comparison channel in FY14

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. 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. 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. Strictly Confidential
Thank you