While the survey found that the use of social media to perform research on insurance products is in its early stages, with 21 percent of respondents using or considering using social media for such purposes, younger respondents again demonstrated much greater interest in this channel. More than a third (36 percent) of respondents under 34 would consider using social media to perform such research.

“With the rise of Internet usage, new purchasing behaviors have emerged that insurers cannot ignore,” said Erik Sandquist, a senior executive in Accenture’s Insurance practice. “Before buying, more and more consumers perform their own research online, compare options and seek recommendations from others, using social media sites or referral sources. This is very common in sectors like travel and electronics, but our survey demonstrates that insurers should expect similar purchasing behaviors from their customers.”

Among other key findings:

• Two respondents out of ten (21 percent) are considering switching to a new insurance provider the next time they purchase or renew their policy. Younger respondents are more willing to switch providers, with almost a third (31 percent) of those aged 18 to 24 saying they will not purchase or renew their policy with their current provider, or will look around.
• Younger respondents were much more willing to pay a premium for personalized advice or assistance when purchasing insurance products, with 39 percent of those aged 18 to 24 saying they would do so, compared to 23 percent across all age groups.
• Banks are perceived as stronger than insurers with respect to offering financial advice. Respondents said they were more likely to see banks as potential “one-stop shops” for financial services, with 47 percent for banks versus 18 percent for insurers. Also, 39 percent said they see their bank as their preferred financial advisor, versus 13 percent for insurers.
• Consumers seek a consistent experience from insurers, no matter what distribution channel they use. A high proportion of consumers (84 percent) said it is important that insurance products and services be identical across available channels, such as agents, online and call centers.

“While our research points to significant opportunities for insurers who can reach consumers with the right products through the right channels, the personal lines insurance market remains extremely competitive,” Sandquist said. “Our survey shows that consumers want speed, products that fulfill their needs and competitive and transparent pricing. It is increasingly important for insurers to align their channels to meet these rising expectations.”