The FINANCIAL — Two-thirds (67 percent) of insurance customers would consider purchasing insurance products from organizations other than insurers, including 23 percent who would consider buying from online service providers such as Google and Amazon, according to new research by Accenture based on a survey of more than 6,000 insurance customers in 11 countries.
Forty-three percent of respondents, who could select multiple responses, said they would consider buying insurance from banks, almost one-quarter (23 percent) from online service providers, 20 percent from home service providers, such as telecommunication or home security companies, 14 percent from retailers and 12 percent from car dealers.
The research shows that loyalty in insurance is a key issue, with 40 percent of consumers likely to switch to another automobile or home insurance provider over the next 12 months. In the life insurance market, one-quarter (25 percent) of respondents said they were likely to cancel an existing contract and more than one-third (35 percent) said they were likely to take out a new contract with a new provider in the next 12 months, according to Accenture.
Lower prices and more personalized service are the top reasons for consumers to switch to a new insurer, cited as important or very important in switching decisions by 87 percent and 80 percent, respectively, of the insurance customers surveyed. Forty-one percent of respondents said they were willing to pay more to get personalized advice when purchasing their insurance.
The research also reveals that two-thirds (67 percent) of consumers are interested in mobile insurance services – such as sending pictures of their car to report a claim, or displaying their proof of insurance on their mobile phone – while less than half (46 percent) of the respondents that are mobile device owners have already used their tablets, and 37 percent their smartphones, to deal with their insurers.
Also according to the survey, more than one-third (35% percent) of insurance customers are open to provide access to their usage or behavior information – such as car-usage or lifestyle information – if this can give them better value for their insurance coverage. Almost half (47 percent) of the respondents said it would depend on the information requested and only 18% were not comfortable doing so, according to Accenture.
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