Four in 10 consumers looking to buy insurance online found the process “very confusing,” according to a recent study by the Target Group.
The research, which included the views of over 1000 customers in Australia and New Zealand, found that direct online purchases leave 47% of consumers under 25 confused.
The Target Group whitepapaer found that 85% of consumers prefer to use the internet to research insurance policies but what they find online leaves a lot to be desired.
Simon Burgoyne of the Target Group stressed that technology has a major role to play in the development of the industry but there is still a lot of work to be done.
“Technology is having a huge impact on how consumers interact with their suppliers across many different industries – and insurance is no exception.
“Whilst this shift may offer insurers the opportunity to communicate with customers in new ways, our research shows that insurance companies are falling behind other sectors when it comes to harnessing the power of this kind of technology.
“With four in 10 respondents reporting that they find insurers’ online offerings confusing, there is clearly a lot of work for insurers to do in this area.”
As 57% of respondents use a laptop to search for insurance, with a further 11% using mobile devices, a clear, concise online offering could be the key to unlocking all manner of new business, Burgoyne said.
“Insurers that want to thrive in this new environment will need to align their online and offline offerings. Whilst this is a significant undertaking, those that are successful will be rewarded with increased customer retention and the chance to grow market share.”
In an unsurprising twist, price came in as the biggest factor influencing insurance purchases with 41% of respondents noting it as their top reason for purchase compared to just 25% who noted product features and 17% the brand of insurer.