Consumers are inclined to purchase through Social Media
05.16.2011

According to a study performed by Accenture, 64% of US and Canadian insurance customers prefer to purchase their insurance policies through an agent rather than through direct insurance markets. Additionally, while younger generations, aged between 25-34 years old favor using insurance brokers, the survey also noted that 31% of these consumers plan to purchase their insurance products online in the next 12 months.
 
Global managing director of Accenture, John DelSanto stated “We believe that multiple distribution channels will continue to co-exist and insurance carriers should continue to better integrate their channels. Insurers with sophisticated analytic capabilities will be able to better understand their customers’ evolving needs, which products and services best address those needs and which channels are most effective for their situation.”
 
Consumers prefer to utilize the services of insurance agents for several reasons. Insurance agents are able to provide immediate problem resolution and cater to individual specifications. Furthermore, consumers using agency services believe that brokers provide better pricing options and transparency.
 
Erik Sandquist, a senior executive in Accenture’s Insurance practice stated “Our survey shows that consumers want speed, products that fulfill their needs and competitive and transparent pricing.  It is increasingly important for insurers to align their channels to meet these rising expectations.”
 
Accenture’s survey also discovered that 21% of the participants use social media markets as a research tool in deciding which insurance products to purchase; while 36% of the respondents under age 34 years old would consider using social media to learn more about insurance services.  “Before buying, more and more consumers perform their own research online, compare options and seek recommendations from others, using social media sites or referral sources. This is very common in sectors like travel and electronics, but our survey demonstrates that insurers should expect similar purchasing behaviors from their customers.”
 
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