Carriers need to Compensate from a
technology standpoint as customers increasingly turn to the
Web for insurance-related transactions.
Held up against the maturity of the Web as a platform,
the rate at which customers have embraced self service
seems wanting. Yet, inexorably, carriers are seeing an uptick
in adoption for self service in areas ranging from bill pay to
policy renewal.
A report from Cambridge, Mass.-based Forrester Research
Inc., “Increasing Online Insurance Self-Service Adoption,”
delves into why many property/casualty and life insurance
companies have been slow to develop online self-service capabilities or to persuade their customers to employ them.
The report, authored by Forrester Senior Analyst Chad
Mitchell, says one reason self-service adoption rates are so
low is that insurers haven’t given customers sufficient cause
to conduct business online.
“Insurance online self-service in both North America and
Western Europe is often characterized by ineffective or non-
existent promotion, limited content, lack of online function-
ality, and poor processes like online authentication,” the re-
port states. “Depending on which insurance company they
do business with, customers often have few incentives to
adopt online self service.”
Indeed, given the benefits both to consumers and carriers
enabled by Web service, the lack of push around self service
seems all the more confusing. The report says insurers need to
formalize a program for self service in order to make it a
higher corporate priority come budget time.
“With competition for funding tighter than ever, a low
priority means no budget,” the report states. “Lack of budget
is a major roadblock to many online self-service initiatives.”
Another potential hurdle to adoption is push back from
producers who fear that expansion of self service will cut
them out of the sales process.
These obstacles notwithstanding, carriers will eventually
need to build up self-service options in the face of shifting
demographics. In an online survey conducted in 2009, 27%
of respondents 18 to 29 years old acknowledged having
paid an insurance bill online, almost twice the percentage
of seniors (15%) that had done so. If these seem low, consider the fact that 50% of Gen Y and 64% of seniors said they
have not been to their insurance company’s Web site within
the last 12 months.
Nonetheless, 46% of respondents of all age groups indicated that the ability to check policy status and make changes on the Web influenced their choice of providers. INN
What actions have you taken in your insurance company’s
Web site in the last year?;$VTUPNFST;XIP;QVSDIBTFE;UIFJS;QPMJDZ;POMJOF
Paid a bill
Renewed a policy
Checked account balances
Changed personal information
Researched other insurance products
Added or removed a beneficiary
Added additional feature to policy
Filed a comprehensive claim
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What actions have you taken in your insurance company’s
Web site in the last year? *OTVSBODF;DVTUPNFST;PWFSBMM
Paid a bill
Renewed a policy
Checked account balances
Changed personal information
Researched other insurance products
Added or removed a beneficiary
Added additional feature to policy
Filed a comprehensive claim
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Have you paid an insurance bill online in the past 12 months?
Gen Y (18-29)
Gen X (30-43)
Younger Boomers (44-53)
Older Boomers (54-64)
Seniors (65+)
;; Source: Forrester Research Inc.
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