Through a various sources you may have heard about a recent study indicating a dramatic rise in consumer interest in shopping for auto insurance online.
A Vertis Communications Customer Focus Insurance Study shows that 40% of consumers surveyed would purchase automobile insurance directly via phone, Internet or mail without first consulting an agent, an increase from 29% in 2003 and 25% in 2001. In particular, 45% of adults ages 35-49 are willing to make a direct purchase. That’s up from 30% in 2003.
That shouldn’t be too surprising, especially given that you can’t turn on a TV or radio these days…or even go to a movie…without being barraged with ads from Geico, Progressive, or Esurance. It’s a challenge that independent agencies and old-school agency-focused insurers that specialize in personal and small business insurance will continue to face in coming years.
(Point of information—when my wife and I shopped our auto, homeowners, and umbrella insurance recently, we did do our shopping online, but ended up staying with our current insurer that’s easiest to do business with via phone, rather than through its kludgy website.)
There is one element of the study that I would like to highlight to my friends over in marketing however:
Accessibility is also important, especially to young adults ages 18-24, who said having 24/7 access to an insurance company is the most critical service (29% in 2007 from 23% in 2003. Value of online access to an insurance company has risen most drastically over the years among adults ages 25-34, from 2% in 2003 to 9% in 2007.
That’s true not only for insurance, but also in most businesses that work with consumers, I think. Although I understand that various entities may not find it cost-effective to keep someone manning the phones 24/7, my schedule is such that it is awfully convenient to make calls, etc. at odd hours, rather than being constrained to the old-fashioned 9-5 business hours.
With my wife’s disability, we end up being particularly pleased with those of her doctors who keep somewhat unorthodox schedules. For example, her PCP works a couple of evenings a week, and one weekend a month, while another of her doctors has normal office hours of 11-7.
The main attraction to me of online shopping is the convenience, and that holds true regardless of whether we’re talking about the assortment of goods over at Amazon.com or my auto insurance. Folks seeking to lighten my wallet, and the wallets of other folks like me, would do well to remember that.