Insurance companies failing to convert Web browsers to buyers

Insurance companies failing to convert Web browsers to buyers

UK insurance companies are failing to convert Web site visitors into online shoppers, according to a survey by eGain Communications.

Results of the survey show consumers are using the Web to gather insurance information, to ask questions of insurance companies, and to obtain quotes. However, more than two-thirds of online visitors are unwilling to go the extra mile and purchase insurance products over the Internet.

eGain, which provides online communications software, conducted the study in spring 2002, surveying a total of 150 frequent Internet users in the UK aged between 25-40.

The research shows 75% of respondents had visited an online insurance Web site. Sixty-one per cent of these requested pricing information but only 30% went as far as purchasing an insurance policy online. The most popular purchase was holiday insurance, accounting for 71% of all online insurance policy purchases.

Among the 25% who had not visited an online insurance Web site, the main inhibitors (cited by 49% of those) were concerns about online customer service and concerns about online security.

Ryan Rosenberg, vice president of international marketing at eGain, says: “The insurance industry has rushed to move online but buyers are still nervous about making large purchases. Like so many industries when they first go to the Internet, the insurance industry has failed to recognise the level of support online customers require in the decision making process.”

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