What the Insurance Industry Needs to Know About Online Purchases
New generations are entering the market for insurance as things like online streaming and shopping become the norm. This audience is used to making immediate purchases with little to no human interaction. To keep up with these new individuals entering the market, the insurance industry needs to use these strategies to make online insurance sales possible.
Brand Familiarity
People are more open to making online purchases if they have had positive interactions with a brand. When making an online purchase people are unable to interact with the products they are considering. Being familiar with the brand makes these individuals comfortable making a purchase online because they can use the prior brand experience to determine the quality of the product.
Generation Z is entering the market, and they are first-time insurance buyers so brand familiarity may come from the suggestions of friends and family members. While these suggestions are helpful when it comes to making a person familiar with a brand, they don’t consider different demographics and lead buyers to seek advice from experts.
Insurers need to make sure information is easy to access for these buyers so they can make decisions based on correct branded information. This is important for insurers because insurance is not something physical that consumers can experience so being able to gather information is how consumers make purchasing decisions.
Information and testimonials from satisfied customers make new customers familiar with a brand and in turn, make them comfortable purchasing something like an insurance policy online.
Ease of Access and Information
Digital marketing and educational tools are important when insurance is sold online. Consumers making online purchases want to gather as much information as possible about a product before they buy it.
When buying a product online a person is not able to have a face-to-face conversation with somebody about the product or experience it for themselves, so having information that’s easy to access helps make up for this.
When it comes to buying insurance online the most common policies bought are straightforward and simple. Some examples include product warranties and product care.
Insurers who sell complicated policies online need to make sure information is easy to access and clear for consumers. Outlining the policy in everyday terms helps consumers feel comfortable knowing what they are buying.
Transparency
Due to the nature of insurance policies and how confusing they are to most individuals; people avoid buying them online. When somebody decides to buy insurance online, they must be able to find any information they may need to make a purchasing decision.
When consumers have a tough time finding information about a product they’re considering buying online, they’re more skeptical about buying the product.
Insurers selling online need to make sure all information about a product is on the website because somebody looking to buy online likely won’t make a phone call to a salesperson to fill in the missing information.
How Are Online Insurance Sales Changing the Insurance Industry?
Now more than ever consumers want to be able to make online purchases. This holds for those searching for insurance.
The insurance industry is having to adapt in ways that consumers will be aware of individual brands, be able to find information on products and services, and be comfortable with the information they find.
The popularity of the internet and the growing number of online insurance transactions is allowing the Insurtech Industry to create value-adding insurance products that customers are comfortable using online.
SmartCompliance’s Contribution
Leading certificate of insurance (COI) tracking software, SmartCompliance allows insureds to store COIs and ensure policies are in place and coverage is met.
Want to learn more about streamlining your insurance compliance process? Schedule a free software demo today!
