Two-thirds of insurance customers would consider purchasing insurance products from organizations other than insurers, including 23 percent who would consider buying from online service providers such as Google and Amazon.
These are key findings published in new research from Accenture. The report is based on a survey of more than 6,000 insurance customers in 11 countries.
Where people consider getting their insurance from:
- Banks – 43 percent;
- Online service providers – 23 percent;
- Home service providers, such as telecommunication or home security companies - 20 percent;
- Retailers – 14 percent; and
- Car dealers – 12 percent.
“Competition in the insurance industry could quickly intensify as consumers become open to buying insurance not only from traditional competitors such as banks but also from Internet giants,” says Michael Lyman, global managing director for management consulting within Accenture’s Insurance Industry Practice. “Overall, there is a significant switching risk and we estimate that up to $400 billion in insurance premiums could change hands within the insurance industry over the next 12 months.”
The research shows that loyalty in insurance is a key issue. In the life insurance market, 25 percent of respondents say they are likely to cancel an existing contract and 35 percent say they are likely to take out a new contract with a new provider in the next 12 months.