April 24, 2018 07:00
Photo : Freepik
For the ORGANIZATION, the sale of insurance via the Internet does not mean the end of the board. On the contrary, the two can cohabit very well, believes the research organisation dedicated to the growth of digital technology.
If the ORGANIZATION has carried out a study on the development of the digital damage insurance, it is because the industry will have no choice but to adapt, says Claire Bourget, director, principal, search marketing, agency. “It will lead to the development of new products,” she says, in interview to the Newspaper of insurance.
She adds that she has observed that the industry is changing and adapting more to the digital. “This is something that is entered in the customs. For people under 45 years old, it is very much embedded in their way, be it for banking or online shopping. People have less time. More things traded via the Web. “
Ms. Bourget points out that when one compares the various economic sectors in terms of digital adoption, the insurance industry is lagging behind. “Our study demonstrates that people want more use of the Internet to do their research. Some also want to have the opportunity to conclude the transaction online, ” she said.
The traditional channel will continue to
One of the key statistics highlighted in the study is that 27 % of the respondents wish to purchase the end-to-end an insurance policy and make the payment through the Internet. “It is one in four adults. One sees, however, two trends emerge, because there are still several people who want to continue in the channels. The industry must therefore keep these traditional modes. If she does not take the transition to digital, it takes the risk to see people have to go to a competitor, ” says Ms. Bourget.
It believes that brokers will have a double challenge in the face of their larger competitors. First of all, they do not have the financial capacity of insurers to develop things. Then, the consumer expects to be served the same way, no matter with whom it does business.
Mrs. Bourget said, however, observed in the course of the realization of the research that there will be a way for the industry to integrate the function of the council in the service that it sells. “Companies that consider offering online sales of end-to-end remain concerned by the board. It must be integrated with technological tools, ” she said.
What is it that is missing to integrate the two ? The consumer is already doing this integration through its various steps, ” says Ms. Bourget. However, the supply side of the industry does not allow it, ” she adds.
Is this the fault of the law ? The study of the ORGANIZATION focused on what is happening elsewhere in the world in terms of framing. One finding emerges : the regulators have not done much to regulate the sale of insurance via the Internet. “The framework in place is not super rigid. They let the market work, ” says Ms. Bourget.
Hence the importance of developing tools, as was the case in automobile insurance with telematics, or home insurance with the inventory of the property. “It’s part of the equation. “
Ms. Bourget also points out that consumers who want to buy via a website want to do the online transaction and does not attach importance to the fact that it is with a broker or not. “Brokers will need to adapt to this. It is not necessary to think that they are going to disappear. Their challenge is the trend toward the digital. The real estate agents the also live. The artificial intelligence will also give us new advances in the field. The intermediary should make sure to bring an added value. “
The key figures of the study of the CEFRIO
- 27 % of the respondents wish to purchase the end-to-end an insurance policy and make the payment through the Internet. This proportion is of 31 % by car and 22 % in housing.
- In a situation of a new purchase, 32 % of consumers who say they are interested in an approach to end-to-end.
- In the moment, the insurers and brokers surveyed by the ORGANIZATION estimate that less than 5 % of the insured purchase their insurance policy end-to-end.
- 70 % of respondents indicated that they instead prefer to “speak verbally to someone,” that to receive a quote through the Internet. Among the respondents in a situation of renewal with shopping, it is 75 % of them who prefer to “talk to someone” rather than the Web.
- We found 21 % of respondents who would opt for a digital channel to communicate with their insurer or broker in the course of delivery. The phone remains the preferred channel for respondents.
- During the election, 62 % of respondents who would prefer the phone and 20 % a digital channel.
- 34 % of respondents are doing research on sites of insurers or brokers. Young people aged 18 to 34 years are more likely to do so, 47 % of respondents from this category.
- It is mainly by going directly to the websites they already know that 38 % of consumers are specifically the insurers or the brokers to whom they make demands of submission. In auto insurance, this proportion is 34 %. It increases to 45 % in home insurance.
- 90 % of quebec households are connected to the Internet, a majority with a connection to high speed.
- The individual use of the Internet in daily life is present in 78 % of the population of adults in québec and mainly in adults aged less than 45 years of age (93 %).
- We find 10 % of quebec adults who never use the Internet.
Source : CEFRIO
The methodology of the study
To conduct its study, the ORGANIZATION conducted a telephone survey of 1 075 Quebecers aged 18 and over, between 16 October and 21 November 2017. Quotas according to age have also been imposed, but also according to the type of insurance purchased. Interviews were also conducted with five insurers and five brokers, whose identity has not been revealed. The ORGANIZATION has also contacted the regulators of insurance in the world to see, how will be framed for the sale of insurance via the Internet. The markets of the State of New York, France, Singapore, the european Union, the United Kingdom and China were analyzed.
The study was funded by thefinancial markets Authority, through its Fund for the education and good governance.