Internet drives Australian insurance industry
Aussie consumers flock online for insurance quotes and renewals
The proportion of online consumers accessing insurance information online is up 9% points in the past six month and more than 20% points in the past two years, much greater than the growth experienced in the more mature online markets of overall internet usage or internet banking, a report by ACNielsen has revealed. Nearly half (47%) of internet users have accessed insurance information online in the past six months, according to the ACNielsen report.
ACNielsen’s Insurance Report compiled the views of approximately 20,000 regular internet users on their insurance preferences, online behaviours and attitudes, and research methods for motor and home insurance.
According to ACNielsen, consumers are becoming competent with the internet, and are now going online in bigger numbers than ever before to research goods and services before they buy and this trend seems to continue in the insurance sector in the next 12 months. 16% of consumers say they will purchase or renew their policies online for the first time.
For those consumers who had used the internet for insurance purposes in the last six months the commonly cited uses were comparing products and prices (79%), obtaining a quote (67%) and paying for a policy renewal (54%). Half (52%) stated they had purchased an insurance policy online in the past 12 months.
But those internet users who went online for their insurance needs were more inclined to shop around than those who used more traditional methods. Consumers who sourced motor insurance quotes over the internet at last renewal were likely to source around three quotes, compared to those respondents who obtained quotes over the telephone, who averaged just two quotes. The survey findings also showed that those respondents who bought their motor policy over the Internet were nearly twice as likely to shop around at next renewal (33% stating very likely) compared to those who bought the policy over the telephone (18% stating very likely).
Internet users who purchase their policies online are more fickle than those who use the phone. Although the internet is a cheaper and a convenient way of providing the consumer a quote, it would take more quotes to get a final sale than through other channels. This means that insurance companies need to work hard to attract them and just as hard to retain them.
The first time ever internet sales were taking away from sales of insurance policies over the phone. This is a big heads-up for insurance providers of the importance of their websites as an information source, a means of getting quotes and now as a sales tool.
27-Apr-2007