Report predicts customer move to online insurance transactions

Currently, only 1 to 2 per cent of general insurance transactions are carried out online, but that looks set to change, according to a report published last Friday.

The report - entitled ‘Can online insurance change Irish consumer apathy?’ - was commissioned by online insurance firm Chill.ie, to coincide with its rebrand last week. Previously the firm had traded as InsureMe.ie for the last year or so.

In recent years, consumers have begun to move towards certain online transactions, such as banking online and purchasing flights over the internet, but many still prefer a more human touch when it comes to complex products such as insurance. However, the report found that there was a ‘‘significant’’ growth opportunity for more general insurance business to be transacted online in Ireland.

‘‘This trend is well established in major economies such as [those in] the US and Britain, but is only in its infancy in Ireland,” the report said.

According to figures in the report, between 15 and 20 per cent of insurance transactions are carried out online in the US and Britain and, with internet usage and broadband penetration on the up here, the new report said Irish internet users would follow the lead of consumers elsewhere.

Orlagh Nevin, managing director of Chill.ie, said that under-confidence was the main factor putting more Irish people off conducting their insurance business online at the moment. ‘‘People tend to be confident enough to get quotes online, but not sometimes to transact the sale over the internet,” she said.

Nevin said there was a large degree of inertia related to insurance, but said she hoped that would change once consumers became more comfortable with using the internet for this kind of transaction.

The Chill.ie report found that Irish consumers could save up to €480 on car insurance, or over 25 per cent on house insurance, by shopping around. However, Nevin said consumers should be careful when choosing an insurance policy, and not just go for the cheapest price. ‘‘Obviously, the price is key to everyone, but it is important to look at the policy benefits too,” she said.

While there a number of online insurers offering services to Irish consumers, Nevin said she believed Chill.ie was set apart by the comparative element of its service. ‘‘Our new online broker service is different, as we shop around all the major providers not only for best price but [also for the] most appropriate cover,” she said.

The newly-rebranded website provides consumers with information on where the quote is coming from and what it covers, rather than just giving one ‘‘faceless’’ lowest price quote, according to Nevin. She said each quote was based on a search of 14 or more underwriters.

For customers who want a more personal touch, Chill.ie operates a personal broker support service by telephone. Nevin estimated that it would be another 12 to 18 months before Irish consumers would be comfortable with the concept of online insurance and happy to use an internet-based insurance service for home ormotor insurance products without feeling the need to also make a phonecall.

She said Chill.ie planned to add content to its website in the meantime to make it easier for customers to get the information they required online. Such content would include a more detailed ‘frequently asked questions’ section and explanations of key insurance terms.