Research by Accenture shows:

1. online insurance customers are less loyal and more price sensitive;
2. the internet is fast becoming perceived as the only way to purchase some types of insurance in the UK;
3. banks are losing out in the insurance market.

The survey shows that 63% of consumers have purchased motor insurance online; 45% home insurance; and 23% life assurance.

Banks’ share of the life assurance market will decline in the future, says Accenture, based on current consumer attitudes. While 22% had bought life assurance from a bank in the past, only 16% of those planning to renew or purchase a new policy in the next 12 months said they plan to buy from a bank.

Of online motor insurance customers, 81% intend to look around at renewal, with only 17% planning to renew with their current provider. Over 76% of online home and motor insurance customers stated price to be a very important factor in their purchase decision.

Steve Lathrope, of the insurance industry practice at Accenture, comments, “The impact of these trends has been exacerbated by the phenomenal rise of the aggregator channel.

“Adapting to the aggregator business model and online customer behaviours has already impacted core insurance operations and will continue to force changes. Providers will need to develop distinctive capabilities to survive and prosper.  In particular, insurers are having to face up to challenges in areas such as branding, product design, customer retention, cross-selling strategies and price-optimisation .”