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85% of consumers now use the internet to compare or search for insurance
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35-44 year olds most likely to rate insurers’ online presence as confusing
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36% of consumers prefer to communicate with insurers over email
This is a considerable problem for insurers, as 85% of respondents said they prefer to use the internet when asked how they research insurance policies. Nearly three quarters (73%) said they would use a computer or a laptop to search and a further 12% said they would use a smartphone. Younger customers are more likely to favour using a smartphone, with 9% of 35-44 year olds choosing this method, compared to just 0.5% of over 55s.
When asked how they preferred to communicate with their insurer, respondents mentioned a mix of traditional and new forms. Email was cited by 36% of consumers as their preferred method of communication, making it the most popular. A further 13% said using the insurer’s website was their favoured way of communicating, whilst just 5% said face-to-face or instant messaging would be their communication method of choice. Fewer than one in 10 respondents (8%) said they would use a landline to communicate with their insurer.
Perhaps unsurprisingly, when asked about the factors that would influence their decision to buy an insurance product, price came out on top, with 80% naming it amongst the top reasons. Product features was cited by 60% of respondents and the brand of the insurer was cited by 42%. Ease of getting a quote was cited by 36%, indicating that insurers need to offer an easy-to-use service if they want to retain customers.
John Miles, Product Manager at Target Group, says:
“Technology is changing the way that consumers buy many different products, and insurance is no different. Whilst this offers opportunities for insurers to interact with consumers across more channels, our research shows that insurers are falling behind other sectors such as retailers when it comes to online interaction. With 62% of insurance companies saying they have no digital strategy in place, insurers are likely to face significant problems unless they take action now.
John Miles continued:
“Those that want to thrive in this changing marketplace will need to blend their online and offline offerings. Although this will be no small undertaking, the rewards in terms of customer retention and the chance to gain market share will make the effort worthwhile.”
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