Study: Consumers increasingly going online to buy insurance

By Gary Linnell

ProWEB Wire (Industry News)


Consumers are increasingly going online to purchase insurance, meaning carriers must ensure their responsiveness, according to a new study conducted by Ipsos Public Affairs for OpTier.

The study also found that 83 percent of Americans are likely to resolve any issues experienced in purchasing or processing an insurance claim online over the phone. In addition, customers with a college degree(89 percent), a household income of $50,000 or more (86 percent), and those who are married (86 percent) are most likely to move to another channel of communication to resolve an issue experienced online.

According to a recent report from Forrester Research Inc. titled "Increasing Online Insurance Self-Service Adoption," "for every 20,000 calls deflected to online self-service, a carrier would realize $100,000 to $200,000 in potential cost savings."

The survey also noted that insurance companies involved in comparison-shopping Web sites face the greatest pressure to deliver lightning-fast estimates, because lags in site performance can translate into lost revenue.

Finally, demographics also factor in heavily, with people aged 18-34 10 percent more likely than older consumers to have already purchased or plan to purchase or research health insurance online, at 25 percent to 15 percent, respectively.