Despite soft consumer demand, U. S auto insurance policies purchased online up seven percent in 2008 versus year ago.
A leader in measuring the digital world, comScore, Inc. released a study of online activity for the auto insurance market in 2008. It showed that consumers submitted requests for 32 million online quotes and purchased a record 2.4 million policies online during the year. Due to weaker consumer demand in the current economic environment, the number of quotes requested online declined by one percent. Regardless of that instance, the number of auto insurance policies purchased online increased by seven percent. This indicates the increasing importance of online as a transactional medium.
Some of auto insurance activities online are policies purchasing and requesting for quotes submitted. In 2007 policies purchased are 2,145 and by 2008 it becomes 2,304 which increase by 7 percent. On the other hand, requests for submitted quotes declined by one percent from 32, 353 in 2007, it becomes 32, 109 in 2008.
Kevin Levitt, comScore vice president said, “The current weakness in U.S. consumer demand has affected nearly every industry, and auto insurance certainly has not been immune from the impact. With fewer consumers purchasing cars, there is less demand underlying auto insurance purchasing. Despite these conditions, however, the number of policies purchased online is still growing, which underscores how important the Internet has become as a transactional medium for the auto insurance industry.”
Aside from the importance of E-servicing as a transactional medium, it also yields cost-saving to auto insurers. Other online auto insurance activities are online payments and policy management.
In general, E-servicing, has represented a positive trend in the industry from both the consumer and insurer point of view. It reduces the time and hassle of managing one’s policy for consumers. It also minimizes paper transactions. Another benefit of this is making consumers have direct control of their policy. It includes viewing and changing coverage, adding or removing a driver, adding or removing a car, and changing an address
On the other hand, for the insurer, e-servicing often represents a significant cost savings by reducing the need for customer service and material costs. Also, the insurers derive a particular benefit, especially in the current economy. With this, it enhances the quality of their long-term relationship with consumers by being able to reduce costs of service. Truly, technological advancement like E-servicing makes things easier, makes transactions easier.