(FREE) Despite the rapid growth in
popularity of internet shopping, insurance agents in the US are in
no immediate danger of redundancy as a result of consumers flocking
online to buy insurance, reveals a study by consulting, technology
and outsourced services company, Accenture.
When it comes to buying life insurance
products, Accenture found that 75 percent of consumers still prefer
to buy their life products from an agent or other trusted source,
such as an employer or financial adviser.
Go deeper with GlobalData
Even for general insurance products, which
have been the subject of considerable marketing effort via the
online channel, the survey revealed that 73 percent of consumers
would still want to consult and agent.
However, younger and more affluent customers
are more inclined to view the internet as an attractive alternative
when buying insurance.
Specifically, Accenture found that 39 percent
of consumers aged between 18 and 24, and 28 percent of consumers
with annual incomes above $60,000 would prefer to buy insurance
products online versus with an agent.
Accenture lays much of the blame for the
online channel’s relatively low acceptance by consumers on the
excessive complexity of insurance products.
“Product complexity and customer service
appear to be a driving force behind consumers’ preference for
agents and their resistance to new insurance purchases,” said
Michael Costonis, director of Accenture’s North American insurance
practice.
“Insurers have an opportunity to attract
younger and higher-income consumers to more straightforward
products via the web,” Costonis added
