The advantages of the online channel
‘It was so easy. It takes about 3 minutes to get a quote.’
Why was the online channel the most widely used channel? Overall, consumers who used the online channel expected it to be quicker than answering all the questions over the phone. Their aim was ‘the least possible pain,’ (online and phone channels used).
The qualitative research clearly identified the benefits of online as:
•
consumers could shop around, going from insurer to insurer relatively quickly•
it could be used for estimates at the enquiry stage, and•
it could be done in a consumer’s own time, or location of choice.For shopping around
Online, consumers could seek quotes from several insurers quickly and easily as some sites had quote forms that were relatively quick to complete:
‘Just punching in the various details, whatever they were asking and every insurer asks different things, but there are basic stuff, home size, how many bedrooms, how many bathrooms, lounge rooms, other features like solar power, this house has solar power, solar hot water, water tanks, things like that, you punch in the information that they are asking, so if they are asking very little, you aren’t punching very much but usually it is pretty comprehensive.’ (Online channel used only)
Going online helped those consumers who were seeking the cheapest quote:
‘They are actually all quite easy, I was surprised, you just put your information in and up comes a price, and they ask you if you want to do it now or later or to save the quote. I found it was quite easy, it was good. Instead of making 14 phone calls, you just sit in front of the unit, and get all your information.’ (Online channel used only)
To get estimates
When some consumers gained quotes online, they guessed some of the features of their house, such as its size in square metres. They thought that they could get an indicated premium from each insurer based on their estimate, and then use precise information when they decided which policy to purchase.
Can be done anywhere, anytime
Some consumers, parents of young children for instance, said that the online channel was the easiest for them to fit into their busy lives. People who tried to get their quotes while at work could fit an online search into their working day.
The disadvantages of the online channel
It was difficult for some consumers to rely exclusively on online quotes. This was especially the case for more knowledgeable consumers, who had questions to ask, and it was also true of consumers who were looking for a quick quote without reviewing policy features.
The disadvantages of the online channel were:
•
on many sites, consumers had no one to ask questions of•
the time taken to input information for each online quote•
some sites did not help to inform consumers about the policy•
detailed policy information was not easy to access online•
some sites were more complex than others•
some consumers worried about entering personal information, and•
discounts and deals were not available online.No one to ask online
One of the main disadvantages of the online channel for consumers was that there was (usually) no one to ask if they had a query. Many people wanted to verify the quote on the phone after first going online. Some would like a chat function online – available with a few insurers – so they could check such details.
Some consumers lacked confidence that they had completed the process accurately and so wanted to talk to someone to make sure they had not made a mistake:
‘Then looking at what it spits back out at you really, I am probably not as savvy on insurance as to see what is missing as such, just looking at what they are providing for that price and making decisions.’ (Online channel used only)
Consumers had to input similar information on each site
Consumers who wanted to gain quotes from several insurers had to input their details at each site.
This is a deterrent to consumers who are time-poor. Consumers said that they found going to several insurers’ websites ‘arduous’ especially when each one asks very similar questions. Comparison websites can help streamline this process as consumers only have to input their information once.
Most sites did not help to inform consumers
Consumers seem to have used only the ‘quote’ part of the insurer’s website in many cases. They input their details and the site ‘spits’ the quote at them. One consumer who was familiar with policy
differences explained her disappointment with the sites currently available:
‘I would like to see an explicit list of inclusions and exclusions written in very plain English that they might refer you to for more detail …’ (Online and phone channels used)
Detailed information hard to access
Some consumers’ homes had unusual features, which did not seem to fit the template used for the quote. For example, one was heritage-listed; another was of an unusual design.
Consumers who wanted to know about policy features thought that it was hard to find information online. They typically only had access to the questions asked by the insurer, and then needed to locate and read the PDS:
‘No, they didn’t have a lot of other information on the website, well they probably do but more buried in the website.’ (Online and phone channels used)
Some consumers who did not feel knowledgeable about insurance cover relied on the insurer to prompt them about policy features that they should consider. Some consumers stated that they had not encountered prompts like this online and therefore phoned the insurer to check. This indicated that online was not sufficient alone for information hungry consumers.
On some sites, the insurer’s approach was to suggest that the consumer read the PDS, which did not suit consumers who wanted only one question answered. See section 3.3 for information about reading the PDS.
Wary about inputting personal information
A few consumers were concerned about the privacy implications of inputting their information online, especially on sites that asked for name and address. Some wanted to make sure that this would not lead to an unwanted sales call:
‘Felt a little conscious of what information I gave out on websites like that …what marketing material will I now be bombarded with.’ (Online channel used only)
Difficult to negotiate price
Some consumers wanted to negotiate the premium or take advantage of multi-policy discounts, which could not be done online:
‘You can’t put loyalty into a calculator.’ (Online and phone channels used)
Some consumers gained basic comparative information online and then phoned the insurer’s call centre to try to negotiate a better rate, or to make sure discounts were included.