Online insurance policy sales increased 29 percent last year, according to an Internet research firm.
ComScore Networks, Reston, Va., also reported this week that the total number of auto insurance quotes increased 24 percent in 2005.
ComScore vice president Nicolas Tabbal said the auto insurance sector showed the most growth of all the financial service categories in online usage.
"The rapid surge in online auto insurance quotes and purchases in 2005 correlates to a substantial reduction in abandonment rates across insurer and aggregator sites, and confirms consumers' increasing comfort in conducting complex financial service transactions online," he said.
The survey found that agent insurers such as Allstate, Nationwide and State Farm showed the greatest increase of policies purchased online, with a 42 percent increase while direct insurers, such as Geico reported a 29 percent hike from 2004.
Aggregators such as Insweb and Insurecom showed the least improvement with an actual decrease of 9 percent in quotes initiated and an 11 percent increase in quotes submitted.
The survey also found that the average abandonment rate at auto insurer and aggregator sites dropped from 51 percent in 2004 to 44 percent last year.
Mr. Tabbal said several factors contributed to that decline such as visual and functional upgrades that have enhanced insurer sites with improved navigability and ease of use and site customization.
"For example, on most insurer and aggregator sites consumers can select from a menu of coverage options and receive recommendations tailored to their specific needs and circumstances," he said.
Technological innovations such as online chat enable consumers to connect directly with insurers at any stage in the process. "This will minimize customer frustration and abandonment," Mr.Tabbal noted.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
