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Auto, home insurance clients look online but prefer buying from agent  While U.S. consumers are increasingly turning to digital sources for
insurance
quotes and other information, they still prefer personal contact with agents when purchasing insurance products – and are willing to pay extra for
 that personal contact – according to a recent survey.

A survey conducted by global management consulting firm Accenture of more than 4,000 U.S. automobile and home insurance customers found

 that most prefer setting up and paying for their coverage directly through an agent.

Major findings of the survey include:

Nearly three-quarters (76%) of consumers express a preference for setting up and paying for their auto and home insurance policies in

person with an agent, and more than half (58%) indicate a preference for doing so via the Web.

More than one-third (38%) of consumers are willing to pay for personalized advice about the insurance that is best for them – and, of that

 group, more than half (56%) are willing to pay at least 10% more.

When asked where they prefer to obtain quotes, 43% of respondents choose websites, while 26% choose over the phone and 26% in

person. A much smaller percentage (4%) chooses mobile applications.

Almost three-quarters (72%) of respondents also express a preference for getting information about products and prices from an insurer’s

 website. Exclusive insurance agents rank third with 56% of respondents, behind friends and family, cited by 61% of respondents. Search

engines and aggregators rank fourth and fifth at 55% and 54% with respondents, respectively.

 

“In defining their distribution strategies, insurers must recognize that consumers are becoming more diversified in their channel preferences at

different stages of the buying process,” said Erik J. Sandquist, a managing director at Accenture Property and Casualty Insurance Services.

“Direct insurers continue to gain share as consumers grow increasingly comfortable buying policies online. This means that insurers with an

agency distribution model must adapt to customers’ changing preferences and integrate their agent networks with digital, mobile, and social

 media capabilities.”

 Age is not a consistent predictor of channel preference

Also according to the survey:

Only 37% of respondents aged 18 to 24 say they prefer to obtain a quote via a website, compared to 53% aged 25 to 44 and 41% aged

 45 to 64. However, 10% of the respondents aged 18 to 24 say they prefer to obtain a quote via mobile applications, compared to 5%

aged 25 to 44 and 1% aged 45 to 64.

Nearly one-third (32%) of respondents aged 18 to 24 say they prefer to obtain a quote in person; only the oldest respondents

(aged 65 to 74) are more likely to prefer obtaining a quote in person (39%).

More than two-thirds (68%) of respondents aged 18 to 24 say they would be willing to pay more for personalized advice when purchasing

 auto or home insurance policy, compared to 27% of those aged 45 to 64 and just 16% of those aged 65 to 74.

“Much has been written about young consumers – with their strong propensity for Internet, social media and mobile – fundamentally changing

insurance distribution,” said Sandquist. “Our survey reveals that many young consumers desire personalized advice and are willing to pay more

 for it – and a significant percentage prefers to obtain their quotes face-to-face. There are many demographic, psychographic, lifestyle and other

 factors which can account for differences in how customers would like to be treated. Some customers make decisions almost exclusively on

price while others seek the best advice available, and this is not consistent by age groups. More sophisticated digital marketing, customer

segmentation and analytics are needed to attract customers and deliver more personalized and relevant products and experiences.”

Insurers have opportunity to build customer loyalty and establish differentiation

Among the survey’s other findings:

One-quarter (26%) of respondents either do not plan to renew their auto or home insurance policy with their current insurers or plan to

 look at other insurers’ offerings.

Nearly half (46%) of insurance customers think that the products and services offered by different insurers are essentially “all the same.”

More than one-third (38%) of consumers are willing to pay for personalized advice about the insurance that is best for them – and, of that

 group, more than half (56%) are willing to pay at least 10% more.

“Our survey research reveals a significant opportunity for insurers to grow market share as many customers plan to shop around when renewing

 their policies. Price remains the most important buying factor which will continue to put pressure on insurers to improve their cost structures. At

 the same time, our research reveals that a carrier’s distribution model can be a strong differentiator, given the relative importance of factors such

 as interaction channel, advice and speed,” said Sandquist.

One Response

A.Mohamed Ali Says:



 client and agent live…99% of the people who bought online will certainly regret several times…

1. No one will be there to take care of them during claims

2. Renewal notices may not reach them

3. Updation of product information and upgradation of products may not be possible when someone buys online.

4. There will be no personal touch in online purchases.

5. Online business is a pure selling process where as service of a professional agent will help prospects and clients buy insurance plans

best suited to him/her

So It is 100% true that informed customers will always prefer buying insurance products from a known, reliable and responsible agent.

Yes, Insurance Industry is based on Relationship…it is a relationship business. the relationship should last longer … as long as the

This is my personal experience:

3 decades of buying insurance products for a group of companies and



more than a decade providing Insurance Solutions and helping people buy insurance products.

I love all my customers and all my customers love me and send me love letters appreciating my Service with Smile.

A.Mohamed Ali



Chennai



India.

Leave a Comment




Eastern seaboard businesses continue their struggle to rebuild after Hurricane Sandy.  In terms of economic losses, the October 29, 2012 storm
 will be remembered as one of the largest natural disasters in U.S. history.

Many residents and businesses, particularly in the hardest hit coastal areas of New Jersey and New York, were caught off guard by the
late-season storm.  In addition to the property destruction caused by high winds and flooding, power outrages created big headaches and huge
financial losses for many small businesses.

Weather experts from the National Oceanic and Atmospheric Administration (NOAA) are predicting an “active” 2013 Atlantic hurricane season.
 The six-month season, which began June 1, typically peaks between August and October. Now is a good time to put a disaster preparedness
 plan in place to protect your employees and your business.

The SBA and Agility Recovery recently hosted a free webinar giving tips on how to prepare for Hurricane season.  But it doesn’t matter if you’re
 in the Gulf Coast or the Upper Midwest—all kinds of risks exist, and small businesses are particularly vulnerable.

Go to this link Download Adobe Reader to read this link content to download the slides from the recent “Protect Your Business This Hurricane Season” webinar.  You can also
view the recorded webinar at any time. You will need Windows Media Player 9 or higher.

Meanwhile, there are a few things you can do, at no cost, to jump-start your business continuity plan:

Determine your greatest risk potential.  It might come from wind damage or the inland flooding that typically follows the tropical storm’s

 heavy rains.  Meanwhile, your business could suffer financial losses due to road and bridge closings in the aftermath of a hurricane. 

Power outages are a major threat, especially to businesses in the food and hospitality industries. What would happen if you had to shut

 down your business for several days?  Look at the building where you do business—inside and out—and assess the risks. If you do this

 early enough, you’ll have time to do structural upgrades—like impact resistant doors and windows—that can prevent possible future

storm damage.

Calculate the cost of business interruptions for one week, one month and six months.  Once you’ve done that, you’ll be able

investigate insurance options or build a cash reserve that will allow your company to function during the post-disaster recovery phase.

It’s also a good idea to develop professional relationships with alternative vendors, in case your primary contractor can’t service your

needs.  Place occasional orders with them so they regard you as an active customer. 

Review your insurance coverage.  Contact your agent to find out if your policy is adequate for your needs. Consult with a business

 insurance expert to advise you on the right coverage for your situation. When buying insurance, ask “How much can I afford to lose?”

  It’s a good idea to know the value of your property.  You also may want to look into flood insurance.  According to the U.S. Geological

 Survey, floods are the leading cause of natural disaster losses. Most property insurance policies don’t cover basement flooding. 

Build a crisis communications plan so you’ll be able to make sure your employees, customers, vendors, and contractors know what’s

 going on.  Establish an e-mail alert system.  Make sure you have primary and secondary e-mail addresses for your employees, and

everyone you do business with.  Create a Facebook page, and use Twitter to let the community know you’re still in business, and in the

 process of recovering after the disaster.

Consider a Telework Policy.  Prepare for the possibility that employees won’t be able to get to work by developing an emergency

 telework policy. Read  “How To Make Telework Work for your Small Business” for more information.

Each month SBA and Agility Recovery hosts a free webinar providing business continuity strategies. The August 13th webinar will focus on
 useful tips for building your own disaster preparedness plan.   Space is limited so register now.

Related Resources


    I was just on a 4 hour webinar this week and was told changes are coming and for the better. In October. Monday, July 15, 2013
National Flood Insurance Program Community Rating System | FEMA.gov

I thought this would answer a lot of question's I've been receiving about the Flood program. Peoples Choice is always staying on top of things that concern our area's of business Florida, Long Island. We go through training on a regular basis so we can keep our client's informed. If you have any questions or are interested in the program. You can call our office speak to Mike DiGennaro who has been through seminars and has helped the community. To overcome any questions they may have. Just as a last note in October there are going to be changes in the National Flood system. Pricing will be a major component. So if you had intention's to consider this do it now.www.peopleschoiceinsure.com forms are available on our website and we will keep you informed.

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