Insurance Networking News - July/August 2011

Insurers’ Multi-Channel Challenge

As digital channels become more established, it is

easy to forget the degree to which consumers still rely upon the agent channel. Indeed, a new survey from Accenture confirms that these new channels will augment rather than supplant long-established ones.

The survey, which queried 2,500 individuals in North America, found that the agent network remains the preferred method to buy insurance among respondents. Even among 25- to 34-year-olds, 59% said they prefer buying insurance from agents as opposed to the 31%

who indicated a preference to purchase online.Nonethe-less, the numbers indicated a proclivity for younger consumers to use the Web and social media as a research tool. For example, 75% of 25- to 34-year-old respondents said they would be interested in using insurance aggregators prior to buying a policy, while only 55% of the entire sample population expressed an interest in doing so.

“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,” says Erik Sandquist, a senior
executive in Accenture’s Insurance practice. “This is very
common in sectors such as travel and electronics, but
our survey demonstrates that insurers should expect
similar purchasing behaviors from their customers.”
Sandquist adds that insurers will need to re-examine
their technology stacks and product mix to ensure they
can best serve these multiple distribution
channels.