Debunking 5 Myths Within the P&C Sector

New survey results from Ernst & Young indicate that the majority of P&C insurers aren’t putting forth the effort to retain customers. The firm's report, “Voice of the customer: Time for insurers to rethink their relationships,” sets out to debunk “myths” within the insurance industry.

Photos courtesy Fotolia

1. The future is online

Indeed, the responses in the Americas region indicate that the migration to online exchanges, in terms of insurance, is moving at a glacial pace. And even then, customers want to maintain a channel with personal interactions.

Twenty-three percent of customers in the Americas are currently using a range of online channels, including providers’ own websites and blogs, to research purchases. However, compared to other areas, the use of online channels is relatively low across the region. In Europe, 32 percent of consumers are already using online sources for research, and in Asia-Pacific, the mark stands at 39 percent.

The Americas region also lags when it comes to the percentage of people purchasing insurance through online channels: Seven percent in the Americas versus 14 percent in both Europe and Asia-Pacific. Even within the Americas there is some discrepancy: Consumers in Latin America are on average 20 percent more likely to consider buying through an online site than their counterparts in the United States and Canada.

The report suggests that because of the well established direct channels that already pervade the U.S. and Canada markets, newer, online channels aren’t being turned to as quickly. Perhaps this is why the report also emphasizes the fact that personal contact is still essential—especially when it comes to claims, as 50 percent in the Americas want personal contact throughout the claims process. As a result, the report advises insurers to integrate online and offline communication channels while adapting to customer expectations across multiple platforms.



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