A new survey of consumer internet usage indicates that property and casualty insurers seeking customers online should target those aged in their thirties.
That was the assessment of Melanie Donaghy, vice president of online marketing strategy for Wells Fargo, when asked what the impact was of a new study by the bank.
San Francisco-based Wells Fargo, parent company of insurance broker Wells Fargo Insurance, conducted a survey of 1,000 online banking customers in late 2009. They found that those in their 30’s are technologically more experienced than those in their 20’s.
What this means for the p&c industry, Ms. Donaghy explained, is that while insurers may believe a younger generation of buyers is adapting technology for their buying of insurance, it is those in their 30’s who are more apt to embrace the digital revolution.
When it comes to such things as managing finances and other investment concerns, in some areas all users are showing great comfort. Eighty percent of respondents said they pay bills or make money transfers online, but only 38 percent have gone beyond banking to manage such things as 401K or an IRA online.
Less than a third of those polled buy and sell stocks or manage investments online and just 16 percent use an online budgeting tool.
When it comes to auto insurance, however, Ms. Donaghy said “the use of online comparison shopping has absolutely exploded.” She noted that 60 percent of Generation Y (roughly those between the ages of 18 to 29) and Generation X (30 and older up to mid-40’s) use online research in their auto insurance buying experience. The numbers drop from there, she said, with 50 percent of those in their 50’s going online for buying information.
However, when it comes to purchasing, people want an agent to talk to before making the final buy, she said.
One exception to that is renters insurance, which is easy to purchase online, she said. While those in their 30’s may be more likely to purchase this product online, again, those who are older and less experienced with technology are less likely to make their purchase online.
“If auto were as easy as renters insurance we would see more purchases online,” she said.
The use of online purchasing of insurance has grown by more than 100 percent over last year for Wells Fargo, and that trend is expected to continue, she said.
Currently, Wells Fargo allows customers to research and bind renters insurance online and research auto insurance online, either purchasing it online or with an agent.
Sometime during the second quarter of this year, Wells Fargo said it expects to have comparison shopping capability for homeowners insurance online, but it will still need to be purchased from an agent.
Understanding customer behavior and use of technology is very important not only to banking, but also insurers, Ms. Donaghy said, because it points to customer behavior and how they like their financial product information delivered.
“If you can understand how online use fits into [customer’s lives] then we know how to provide education and information to them,” she said.
While banking may become more digital, Ms. Donaghy said the need for insurers to have agents and representatives will remain.
“All the touch points will always be necessary,” she explained. “It is too complex a product and [those representatives] will always be needed.”
NU Online News Service, Jan. 22, 10:30 a.m. EST
A new survey of consumer internet usage indicates that property and casualty insurers seeking customers online should target those aged in their thirties.
That was the assessment of Melanie Donaghy, vice president of online marketing strategy for Wells Fargo, when asked what the impact was of a new study by the bank.
San Francisco-based Wells Fargo, parent company of insurance broker Wells Fargo Insurance, conducted a survey of 1,000 online banking customers in late 2009. They found that those in their 30’s are technologically more experienced than those in their 20’s.
What this means for the p&c industry, Ms. Donaghy explained, is that while insurers may believe a younger generation of buyers is adapting technology for their buying of insurance, it is those in their 30’s who are more apt to embrace the digital revolution.
When it comes to such things as managing finances and other investment concerns, in some areas all users are showing great comfort. Eighty percent of respondents said they pay bills or make money transfers online, but only 38 percent have gone beyond banking to manage such things as 401K or an IRA online.
Less than a third of those polled buy and sell stocks or manage investments online and just 16 percent use an online budgeting tool.
When it comes to auto insurance, however, Ms. Donaghy said “the use of online comparison shopping has absolutely exploded.” She noted that 60 percent of Generation Y (roughly those between the ages of 18 to 29) and Generation X (30 and older up to mid-40’s) use online research in their auto insurance buying experience. The numbers drop from there, she said, with 50 percent of those in their 50’s going online for buying information.
However, when it comes to purchasing, people want an agent to talk to before making the final buy, she said.
One exception to that is renters insurance, which is easy to purchase online, she said. While those in their 30’s may be more likely to purchase this product online, again, those who are older and less experienced with technology are less likely to make their purchase online.
“If auto were as easy as renters insurance we would see more purchases online,” she said.
The use of online purchasing of insurance has grown by more than 100 percent over last year for Wells Fargo, and that trend is expected to continue, she said.
Currently, Wells Fargo allows customers to research and bind renters insurance online and research auto insurance online, either purchasing it online or with an agent.
Sometime during the second quarter of this year, Wells Fargo said it expects to have comparison shopping capability for homeowners insurance online, but it will still need to be purchased from an agent.
Understanding customer behavior and use of technology is very important not only to banking, but also insurers, Ms. Donaghy said, because it points to customer behavior and how they like their financial product information delivered.
“If you can understand how online use fits into [customer’s lives] then we know how to provide education and information to them,” she said.
While banking may become more digital, Ms. Donaghy said the need for insurers to have agents and representatives will remain.
“All the touch points will always be necessary,” she explained. “It is too complex a product and [those representatives] will always be needed.”
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