Online Insurance Sales & Marketing: Practices & Profiles

February 13, 2002

Abstract

New York, NY, USA February 13, 2002

 

Celent estimates that online insurance shoppers currently account for 19% of personal lines premiums, and predicts that this number will grow to 37%, or over US$200 billion, by 2005.

Despite the disappointingly slow pace of adoption for online insurance purchasing, consumers are turning to the Web for research and shopping for policies in record numbers, even if they eventually make the purchase offline. In a new report, , Celent urges insurance sellers to consider the Web as a critical component of their marketing strategies and benchmark the performance of their online initiatives relative to other marketing channels, rather than sales channels.

"The Web represents a unique opportunity for insurance carriers to gain mind-share with consumers who are early-stage potential buyers, as well as mid-stage buyers who are actively comparing different offerings," says Celent analyst Matthew Josefowicz, author of the report. "Carriers who do not make themselves visible and attractive to consumers, either by providing rich information, including quotes, on their own sites or through aggregators and online agencies, will lose market share to those who do."

Celent recommends that insurance sellers consider the primary points of visibility, branding, rich information (including quotes), and live service when crafting their online offerings.

"Consumers need to be able to find you, either directly or through an aggregator," Josefowicz says. "They need to be able to be comfortable with your company's brand, either because it's well known to them through other channels or because they're presented with reassuring information like corporate background and financial ratings. They need to be able to get comprehensive, but not overwhelming, product information, and finally, they need to be able to get help through phone, email, or live chat if they have questions." The report examines the evolution and needs of the online insurance shopper, as well as channels that carriers are using to attract them, and the various business models of the companies that have arisen to bridge the gap between consumers and the carriers. Eighteen companies are profiled in the report, including: Accuterm, AMS Services, Answer Financial, CustomQuote, ComparisonMarket, ebix, eHealthinsurance, Esurance, InsLogic, Insurance.com, InsWeb, NetQuote, Pivot, QuickQuote, Quotesmith, Reliaquote, YouDecide, and YouZoom.

A Table of Contents is available online.

of Celent Communication's Life/Health Insurance research service can download the report electronically by clicking on the icon to the left.

        

Send mail to info@celent.com with questions or comments about this Web site.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

New York, NY, USA  February 13, 2002

Return to report Abstract

 

EXECUTIVE SUMMARY 3
INTRODUCTION 4
BENEFITS TO BUYERS AND SELLERS 7
MARKET ANALYSIS 10
ONLINE SHOPPER PROFILE 13
MARKETING TO THE ONLINE CUSTOMER 15
BUSINESS MODELS AND PLAYERS 19
CARRIER STRATEGIES 21
BANK STRATEGIES 24
COMPANY PROFILES 26
  Accuterm 26
  AMS QuoteNetworks 27
  Answer Financial 28
  ComparisonMarket 29
  CustomQuote 30
  ebix 31
  eHealthinsurance 32
  Esurance 33
  InsLogic 34
  Insurance.com 35
  InsWeb 36
  NetQuote 38
  Pivot 39
  QuickQuote 41
  Quotesmith 42
  Reliaquote 44
  YouDecide 45
  YouZoom 46
LOOKING AHEAD 47

 

        

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