In the last five years, insurance customers and their expectations have changed exponentially. With the rapid advancement of technology, customers expect more from their insurance agents.
You have what it takes to meet these demands. First, find out how consumers have changed. From there, use these findings to better accommodate their evolving needs.
Knowing your consumers can help you create context, sell smarter, and respond accordingly. When trying to nurture and close leads, it benefits to have as much information on hand as possible.
A New Era, A New Insurance Consumer
As technology changes at a constant, lighting-fast pace, consumers are changing along with it. New developments continuously shift the average consumer's expectations on almost a daily basis.
These developments make consumers more decisive in regard to buying or using insurance policies. Having the power to make instant changes or inquires puts consumers at an advantage. It also creates even heavier demands for insurance providers. With more than one option to choose from, consumers can switch providers at any point. As an agent, it's your job to make sure they find their experience as satisfactory as possible.
Knowing this, you and your company must be able to respond to these new demands. The modern consumer expects an easy and convenient online experience. Failing to satisfy them could result in a higher turnover rate. You want consistent renewals, so do what you can to hold onto them tightly.
We've crafted a handy infographic that highlights the changes in the modern consumer. It also contains information that might be helpful to getting to know your customers before calling or sending an email.
There are multiple levels in which customers embrace online technology use. Even people who are tech-averse consider the Internet a huge part of their lives.
There are several categories to differentiate the way online consumers approach technology:
Passive Users (20%)
These users resist online activities if possible. Inevitably though, they use the internet for research or finding contact information for insurers. SEO is still important for helping them find what they need. They tend to be more social and mobile-based.
Proactive Protectors (17%)
These consumers are less willing to share personal information online. However, they do find online shopping more convenient than face-to-face interactions. Relationship building is very important to them in order to create trust. Responding quickly to their needs also builds the relationship.
Solely Shoppers (21%)
When it comes to background research, solely shoppers are at the top of the list. They heavily invest in looking for online reviews and price comparisons before purchasing. Online content is persuasive for them. Personalized campaigns have proven to be effective.
Open Sharers (21%)
Open sharers are constantly connected. They see great value in online shopping, especially if sharing information will get them special offers. They often have several social media accounts, and will fearlessly share information.
Simply Interactors (21%)
These are the most dedicated social media users. They are vocal and quick to respond to posts by friends or brands. Often initially skeptical, but easy to convince.
Other Revealing Demographics
The insurance industry has noticed a few trends of their own when it comes to online customers:
- 20 to 29 — 20%
- 30 to 39 — 23%
- 40 to 49 — 20%
- 50 to 59 — 19%
- 60 to 69 — 12%
- 70 to 79 — 6%
The age group that requests the most quotes are 30 to 39 year-olds. This could be because around age 30 and up, many people start marrying, having children, and buying homes. All these major life events call for a question and evaluation of security and coverage. Thus, these people will most likely be buying one if not multiple insurance policies.
The age group with the lowest percentage is, unsurprisingly, 70 to 79 year-olds. Typically, elderly people don't tend to buy insurance. Their age group brings about health issues and other preventatives from leading normal lives.
Single vs. Married
- Married customers = 41%
- Single customers = 59%
It seems odd that more single people than married people are buying insurance. This is a common misconception. In fact, it doesn't matter if you're single or not, because in any case it's always good to be protected.
- Male customers = 54%
- Female customers = 46%
Renting vs. Owning a House
- Consumers who actually own a home = 48%
- Consumers who are renting a home = 52%
- Currently insured consumers = 80%
- Not currently insured consumers = 20%
These numbers are interesting. You may find it strange at first that more consumers rent homes as opposed to owning them. This is probably due to the fact that home ownership prices have been incredibly high over the last few years. Even people who once owned homes and now rent can't qualify for a mortgage. Instead, they're stuck renting.
However, it does make sense that most of the people looking for quotes are currently insured. They have some financial stability, or at least value the idea of having coverage. That doesn't necessarily mean that the 20% doesn't want insurance. Rather, they are probably waiting for a big change like marriage or having kids to occur.
One vehicle = 85%
- Two vehicles = 14%
- Three+ vehicles = 1%
For auto insurance, it seems daunting to have to pay for three different vehicles. Understandably, having only one car policy is more affordable.
But what exactly does the consumer want?
- Standard Auto Insurance = 26%
- Preferred Auto = 28%
- Premium Auto = 21%
- Homeowners Insurance = 10%
- Other = 15%
You might ask why consumers want their respective car insurance policies. This breakdown of how each policy aligns with the consumer might help:
Standard = $9.00*
- Not at high risk
- No DUI's
- No SR-22 or suspensions
Preferred = $13.00
- Currently insured
- 2 or fewer incidents
- Over 22 years-old
- No DUI's
- No suspensions
Premium = $14.50
- Insured for more than one year
- Over 25 years-old
- No incidents and not high-risk
- No SR-22's, DUI's, or suspensions
*Prices are at the full payment level, discounts are available.
Though more people pay for preferred auto insurance, premium is probably the best option for drivers who are very attentive when on the road. If you're confident in your driving, just paying the standard premium can save you a lot of money.
It also seems that more people purchase auto insurance than home or life insurance. Why is this? Perhaps because so many accidents occur on the road. Although accidents can undoubtedly happen in a person's house, they don't seem as prevalent as car crashes. Because of this, it's understandable why most of them lean towards buying car insurance.
QuoteWizard Meets the Demands of Insurance Consumers Head-On
There are many ways to grow with the evolving online insurance consumer. One of the best methods is giving them convenient access to policy quotes in a way that opens up communication channels.
Power up your ability to reach online customers and be a part of their journey with QuoteWizard. Visit our insurance leads section to find out more about how we bring business to you!
Are you surprised by the statistics of these online consumers? Tell us below what you think.