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RealTime IT News

Study Reveals Online Insurance Transactions Lag

A survey sponsored by Greenwich, CT-based IVANS, a provider of technology services to the insurance industry, found that while consumers are quick to spend their money at online music stores and booksellers, they are not as anxious to conduct insurance transactions online.

The survey was conducted by Princeton, NJ-based Opinion Research Corp. International among more than 2,000 consumers in the United States.

Survey results highlight the growing trend for consumers to use online services. Of the 29% of the U.S. population who have access to the Internet from home, more than 50% said they are interested in banking online and 44% are interested in purchasing consumer goods such as CDs and books. For home insurance and auto insurance purchases, however, the figures dropped to 27% of all Internet users.

"Although the Internet offers incredible opportunities for e-commerce, it is clear that consumer demand for online products and services varies widely depending on the industry and the complexity of the transaction," said IVANS President and CEO Dan Carmichael. "Insurance has significant variables and can involve more complex decision-making and options."

The survey results were conclusive in determining that the insurance industry still has some way to go in convincing consumers to buy or submit policies and claims online. Of the Internet users, half indicated they would be comfortable submitting claims electronically.

Reasons for not wanting to conduct insurance transactions online include: 50% indicate they prefer more personal attention, 34% say security is an issue, and 8% say the process would be too complicated.

IVANS Inc. is an industry-owned, technology services organization providing a broad range of electronic communications services and business solutions to the insurance and health care industries and related organizations in the United States and Canada.