Fraud, delivery issues impact customers' trust in online shopping – Chubb

A majority of consumers say insurance would boost their confidence

Fraud, delivery issues impact customers' trust in online shopping – Chubb

Insurance News

By Ryan Smith

Consumers intend to step up their spending on e-commerce platforms over the holiday season, according to a new report from Chubb. However, financial fraud and delivery issues have impacted consumers’ trust of online shopping sites.

According to the report, which surveyed 500 consumers across the globe, 55% of respondents intend to increase spending at e-commerce sites.

However, Chubb found that brick-and-mortar stores were still the most popular choice among consumers, with 43% buying from physical locations. Another 27% said they intended to buy direct from company websites.

How consumers said they’d shop in the coming year


Holiday season





Company websites



E-commerce platforms



Social media platforms



Source: Chubb

However, consumers’ confidence in online retail has been impacted by fraud, delivery problems and other issues, the report found.

“As online sales grow through both e-commerce and social media platforms, trust is an extremely fragile asset – it is one flawed delivery, one security breach or one technical glitch from being lost,” Chubb said in the report.

Among the report’s key findings:

  • 75% of online shoppers have dealt with financial fraud, as well as additional disruptions or complications with online transactions
  • 61% have experienced delivery delays
  • 55% have lost payments thanks to glitches in the purchasing process
  • 42% have frequently received damaged items

Read next: Chubb taps division president for international general insurance operation

“A majority of these consumers say having insurance would increase their confidence in making online purchases,” Chubb said. “Seven out of ten consumers would like to have coverage, mainly to protect purchases of electronics, home appliances, exercise equipment, and clothing.”

The report found that many consumers would be willing to pay a nominal fee for the peace of mind insurance could bring to online purchases.

“A majority of consumers in the survey would be willing to add one percent of the price of their purchased goods for related insurance,” Chubb said.

Thirty-two percent of survey respondents said they would be willing to pay up to 5% of the total cost of their online transaction in order to receive insurance coverage.

“Digital insurance protection offers a means to build or preserve a superior customer experience, covering losses incurred as a result of financial fraud, lost or stolen goods, or errant shipments,” Chubb said. “A majority of consumers in the Chubb survey acknowledge that having such insurance would provide them with more confidence to make purchases.”

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