More than half - 64 percent - of U.S. and Canadian consumersplan to purchase insurance through an agent, according to a surveyof 2,500 consumers in both countries by Accenture.

While younger consumers also predominantly favor agent networks– 59 percent of 25- to 34-year-olds prefer buying insurance throughthis channel – almost one-third (31 percent) of them said they planto purchase online in the next 12 months.

“In an environment with tighter margins and increased regulatorypressure, it is critical for insurers to know what consumers wantand how they want to purchase it,” said John DelSanto, globalmanaging director of Accenture’s Insurance practice. “We believethat multiple distribution channels will continue to co-existand insurance carriers should continue to better integratetheir channels. Insurers with sophisticated analytic capabilitieswill be able to better understand their customers’ evolving needs,which products and services best address those needs and whichchannels are most effective for their situation.”

According to the survey, the top criteria for consumers inchoosing an insurance provider are speed of problem resolution andthe ability to offer insurance products and services that meettheir needs, with 68 percent and 67 percent saying this is veryimportant, respectively. Competitive prices and price transparencywere also near the top of the list at 65 percent and 63 percent,respectively. Consumers’ interest in price and price transparencywas further supported by the finding that more than half ofrespondents (55 percent) said they would be interested in usinginsurance aggregators – websites that compare quotes betweendifferent insurance companies. The proportion is even higher foryounger consumers, with 75 percent of 25- to 34-year-oldrespondents expressing interest in doing so.

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

“With the rise of Internet usage, new purchasing behaviors haveemerged that insurers cannot ignore,” said Erik Sandquist, a seniorexecutive in Accenture’s Insurance practice. “Before buying, moreand more consumers perform their own research online, compareoptions and seek recommendations from others, using social mediasites or referral sources. This is very common in sectors liketravel and electronics, but our survey demonstrates that insurersshould expect similar purchasing behaviors from theircustomers.”

Among other key findings:

• Two respondents out of ten (21 percent)are considering switching to a new insurance provider the next timethey purchase or renew their policy. Younger respondents are morewilling to switch providers, with almost a third (31 percent) ofthose aged 18 to 24 saying they will not purchase or renew theirpolicy with their current provider, or will look around.
• Younger respondents were much morewilling to pay a premium for personalized advice or assistance whenpurchasing insurance products, with 39 percent of those aged 18 to24 saying they would do so, compared to 23 percent across all agegroups.
• Banks are perceived as stronger thaninsurers with respect to offering financial advice. Respondentssaid they were more likely to see banks as potential “one-stopshops” for financial services, with 47 percent for banks versus 18percent for insurers. Also, 39 percent said they see their bank astheir preferred financial advisor, versus 13 percent for insurers.
• Consumers seek a consistent experiencefrom insurers, no matter what distribution channel they use. A highproportion of consumers (84 percent) said it is important thatinsurance products and services be identical across availablechannels, such as agents, online and call centers.

“While our research points to significant opportunities forinsurers who can reach consumers with the right products throughthe right channels, the personal lines insurance market remainsextremely competitive,” Sandquist said. “Our survey shows thatconsumers want speed, products that fulfill their needs andcompetitive and transparent pricing. It is increasingly importantfor insurers to align their channels to meet these risingexpectations.”