The research indicated that 49.6 per cent of those with insurance identify the internet as the best channel for selecting insurance products.
Norman Morris, industry communications director at Roy Morgan Research, said the online environment was now the main channel and it enabled insurance providers to engage with different types of customers across the whole market.
“With the growth of the online comparisons and the relative ease with which policies can now be researched, understood and taken up, insurance providers who are slow to invest in optimising their digital presence and understanding how and where to create effective customer engagement through the internet and social media risk losing touch with an ever-growing proportion of the market,” said Mr Morris.
According to Mr Morris, the prevalence of consumers researching insurance products online will push planners and insurance brokers to keep up with the latest products being offered on the market.
“Previously when consumers sought advice from a planner or a broker they’d be starting from scratch but now they have a fair idea of what’s around so they are better informed,” Mr Morris told InvestorDaily.
There are, however, risks for consumers who choose products directly from online sources; small print for instance can be an easy trap for those without expert knowledge.
Mr Morris said while there has been a strong development in consumers exploring products across all markets, when it comes to financial or insurance products consumers need to understand what they are looking at.
“Having been down the insurance track a few times myself, there’s a lot you just can’t get from simply visiting a website, there is a lot to understand, particularly with products such as life insurance which involve tax deductions and income protection,” he said.
