Insurance industry customer experience study: 90 % of online customers do not bother with personal consultation when concluding insurance contracts

The latest e-commerce study entitled “What insurees want online and what companies offer” from IT service provider adesso reveals that four key areas will play a major role in the insurance industry’s online business going forward: action is needed in the areas of customer experience, personalised marketing, social commerce and omnichannel marketing.

Approximately 90 % of the end consumers surveyed currently do not bother with personal consultation from agents and insurance companies. Nearly three quarters of prospective insurance clients continue to use the channel they used when they started their user journey. A substantial 27 % first obtain information online about insurance and then they conclude the transaction in store.

Customer experience: quick information on terms and conditions and prices

Insurees particularly value comparison portals and price comparison sites (62 %). One in two of those surveyed obtains their information on the insurance provider’s website. When concluding the insurance contract, what matters most is the insurance provider’s website, very closely followed by comparison portals. Nearly one in three of those surveyed finalised a policy on the move, using their smartphone or tablet.

Comparison portals and price comparison sites are very popular with policyholders. (Source: adesso)

Personalised marketing: huge potential among young people

Companies must view personalised advertising differently. When advertising is based on interests, hobbies and bought previously items, then twice as many recipients are likely to accept the product than if the advertising is based on age, family situation or search history. In general, younger target groups are more open-minded than the older persons surveyed. Insurance companies should therefore pay attention to how they can address potential customers in a way that is tailored to them individually and to their needs.

Online meets offline: the customer’s journey begins online and continues offline

The study’s results confirm that the coronavirus pandemic has accelerated the process of digitalisation and innovation in the insurance industry. The younger the respondent, the more likely they were to have concluded an insurance policy online. A total of 27 % of respondents first obtain information online about insurance, after which they conclude the transaction in store. Insurance providers must offer customers a comprehensive range of information on how they can conclude an insurance transaction online or obtain advice directly in an insurance office.

Smartphones are on the rise as a terminal device for taking out insurance. Especially among women. (Source: adesso)

These are the respondents' favourite channels for finding information and concluding insurance contracts. (Source: adesso)

Social commerce massively underestimated by companies

The insurance industry is still mostly absent from social media. Only 3 % of respondents have so far concluded an insurance policy after spending time in relevant social media networks. To be the first company to launch the right campaign on social media will give them the edge over the competition. YouTube harbours huge potential. While most consumers (88 %) can be found there, only 44 % of companies use the video platform as a marketing channel.

Stefan Riedel, member of the Executive Board of adesso, has this to say: “There is huge untapped potential when it comes to a personal approach, in the provision of the online range of services focused on concluding transactions and in the use of different social medial channels. Companies focused on success that recognise and tap these opportunities can make themselves attractive to the younger target audiences in particular.”

Stefan Riedel, Member of the Executive Board of adesso SE: "For insurers, there is high untapped potential in the area of personalised addressing." (Copyright: adesso)

About the study

The adesso study takes a closer look at the impact of the last few months on e-commerce in the individual sectors as well as on the attitudes and behaviour of consumers. A representative sample of 1,000 online customers were surveyed on their shopping behaviour and 373 companies on their customer experience management activities.

The study is available at the following site: adesso.de/cx-studie-insurance

The e-commerce study "What Insureds Want Online and Companies Offer" by adesso takes a close look at the insurance industry in the online segment. Available at: adesso.de/cx-study-insurance