Online Comparison

and Private Health

Insurance

Changing consumer trends

Matt McCann – iSelect

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 weeklyaverage

CY12 weeklyaverage

Online shopping has been part of a

fundamental shift in the way many

Australians engage with retailers

Nielsen March 2013

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

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)

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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%

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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

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

Strictly Confidential

7

New comparison

players in the market…..

25%

Management estimate of sales attributed to the comparison channel in FY14

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)

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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…….

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Customers love the experience

-20

-10

0

10

20

30

40

50

60

70

iSelect Banking Health insurance

Net Promoter Score (NPS)

NPS

Strictly Confidential

Thank you