Chubb: More than half of home insurance consumers look for coverage online

Chubb’s latest survey has found that more consumers have been shopping for homeowners insurance online these past few months – a trend that the insurer believes agents and brokers should take advantage of, and not be afraid of.

According to the study, entitled “Winning the New Client Journey,” more than half (53%) of respondents said that they shopped online for homeowners’ insurance in the past 12 months. Additionally, 61% of respondents indicated that they are likely to shop online for home insurance in the future.

While there have been concerns that online direct insurance sales could threaten the role of agents and brokers, Chubb believes that insurance professionals can still provide value.

“While the option to shop for homeowners’ insurance online can appear to be a time saver, there is risk in using the same online shopping strategy for buying a pair of shoes to purchasing homeowners’ insurance,” commented Chubb personal risk services executive vice-president, sales and distribution leader Mary Parsons.

“Insurance can be very complex, especially for those that are financially successful and have a number of valuable assets that are in need of customized strategies to ensure they are properly protected from a range of unanticipated, adverse events,” Parsons explained. “One size does not fit all, and independent agents and brokers are uniquely positioned to help clients make sense of all the information available online, so that they can choose the right coverage, with peace of mind.”

Other significant findings of the report include:

• Successful individuals and their families are the most likely to browse home insurance offerings online – 69% and 73%, respectively. The two are the most likely of any income group to shop online.
• 35% of respondents cited saving time as the top reason for purchasing insurance online.
• 67% said that the main advantage of working with agents and brokers as part of the shopping process is that the professionals give advice on how to protect one’s home.
• 64% acknowledged the benefits of being able to talk to a real person in the event of a claim.
• 80% indicated that agents and brokers should prioritize getting adequate insurance policies over getting the lowest price.
• 54% of successful individuals and households said that agents and brokers actually lose credibility in their eyes when the professionals lead with the lowest cost option.