Younger auto insurance shoppers are more likely than older shoppers to select a brand based on Web site information and navigation rather than on price, according to new research from J.D. Power.
The 2014 Insurance Website Evaluation Study (IWES) by the global marketing information services company is based on more than 3,000 service evaluations and more than 4,000 shopping evaluations. Fielded in February and March 2014, IWES measures online consumer experiences—among both shoppers seeking quotes and existing customers conducting policy servicing activities.
Also see: The New Customer Experience
While price continues to be an important driver for all shoppers when selecting an insurance company, younger generations including Generation X (35 percent) and Generation Y (35 percent) are less likely to select the lowest-priced brand than are Baby Boomers (47 percent), the report says.
The younger shoppers Gen X (40 percent) and Gen Y (40 percent) are more likely to choose brands with the easiest site navigation. The study finds that Gen Y shoppers are more concerned with understanding the information provided when shopping for insurance, as they are more likely to buy a brand that provides the appropriate amount of information and does so in a clear and intelligible way.
Given that in the U.S. automobile marketplace Gen Y is the fastest growing segment of new-vehicle buyers, “insurers need to think about how to present information that best addresses the needs of this highly attractive consumer group,” says Jeremy Bowler, senior director of the global insurance practice at J.D. Power.
“Understanding the preferences of different generations, especially Gen Y consumers, is of utmost importance to ensure that shoppers are having the best experience possible.”
Other key findings of the report are that the overall service satisfaction index for auto insurance average is 425 (on a 500-point scale), 73 points higher than the overall shopping satisfaction index. For the industry as a whole, overall service and shopping indices have improved significantly year over year, according to the report.
“The process of getting insurance quotes can be complex for shoppers; and for those unfamiliar with insurance terminology, it can be quite difficult and frustrating,” Bowler said. “Insurers that provide a user-friendly, informative experience can make the process less intimidating and help improve the overall website shopping experience.”
Register or login for access to this item and much more
All Digital Insurance content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access