Online insurance not all it’s cracked up to be

Online insurance not all it’s cracked up to be

Online insurance not all it’s cracked up to be 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.
5 Comments
  • Jack 26/03/2015 9:46:13 AM
    Well if consumers are confused with the layout of OnLine Quote systems and 45% buy on price, wait and see how confused they will be when they have to make a claim because they just lost everything they ever owned and there cheap policy doesn't cover them correctly.
    Yes ..... Sir - your Accident Policy covers you for falling off the roof, but not if you hit the ground!!
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  • md 26/03/2015 10:35:40 AM
    I agree with Jack, the consumer wants to protect their most important asset with a cheap and nasty policy, and without advice. They trust the faceless internet for advice, and not the career dedicated and professional Insurance Broker. No wonder they are confused!
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  • Josh 26/03/2015 12:16:43 PM
    Online backfired for us. We threw ludicrous amounts of capital into a system that didn't work... Actually, we've done that several times now.
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