P2P: Customers Turn to Digital Insurance, Family and Friends for Advice

P2P: Customers Turn to Digital Insurance, Family and Friends for Advice [SURVEY]

P2P Insurance Customers Turn to Digital, Family and Friends for Advice

P2P insurance. In a recent US survey Accenture finds that most insurance customers prefer digital insurance channels and turn to family and friends for advice.

P2P Insurance Customers Turn to Digital, Family and Friends for Advice Over 4,000 US automobile and home insurance customers were surveyed by Accenture (@Accenture). The survey revealed that 76% of consumers prefer paying their insurance policies to an agent, while 58% prefer doing so online. Also, 43% of them choose websites over phones and 26% choose personal contact. On the other hand, only 4% chose to pay via mobile applications.

Respondents rank their preference in obtaining product information and positioned an insurer’s website first with 72%. Behind friends and family with 61%, exclusive insurance agents rank third in customers’ preference with 56%.

Search engines and aggregators rank fourth and fifth with 55% and 54%, respectively. As a response, insurers must adapt to the customers’ changing preference and integrate digital, mobile, and social media to their agents’ networks.

Customers’ preference is also not consistent with their age. The survey revealed that 37% of 18-24, 53% of 25-44, and 41% of 45-64 years old respondents prefer to obtain information online. 32% of young adults and 39% of the oldest respondents (65-74) prefer personal contact to obtain quotes. 68% of young adults, 27% of 45-64, and 16% of the oldest are ready to pay more for personalized advice in buying an insurance policy.

The survey also revealed that insurers can grow their market share as customers plan to renew their policies. 26% of respondents either plan to change insurers or renew existing policies. 46% think that insurers offer the same products and services. 38% are eager to pay for personalized advice; 56% from that group are willing to pay at least 10% more.

Key Stats

  • 76% of insurance consumers prefer to pay to an agent, while 58% like to pay online
  • 43% would rather visit insurer’s websites than phones
  • 26% prefer personal contact, while 45 choose to pay via mobile applications
  • Respondents rank their preference with insurer’s website at 72%, friends and family at 61%, insurance agents at 56%, search engines at 55%, and aggregators at 54%.
  • 37% of 18-24, 53% of 25-44, and 41% of 45-64 years old respondents prefer to get information online
  • 32% of 18-24 and 39% of 65-74 prefer to get quotes via personal contact
  • 68% of 18-24, 27% of 45-64, and 16% of 65-74 are ready to pay more for personalized advice 
  • 26% of customers plan to change or renew insurance policies
  • 46% think that insurance offer the same products and services
  • 38% are willing to pay for personalized advice – 56% of that group are willing to pay at least 10% more

Erik J. Sandquist, managing director in Accenture Property and Casualty Insurance Services: “In defining their distribution strategies, insurers must recognize that consumers are becoming more diversified in their channel preferences at different stages of the buying process.”

Covered by my Visible Banking Team

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Any thoughts on those insights from Accenture’s recent survey on the impact of digital insurance and the customers’ new expectations and behaviours when researching insurance products?  Once again, peer recommendations and the voice of the customer (VOC) prove highly influential in the purchase process.

We invite you to share your thoughts about the potential of P2P and social media in the insurance industry, here or on twitter.

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