Brand reputation integral to consumer choices
Over 50 percent of consumers consider brand reputation when purchasing insurance, according to Deloitte.
The business advisory firm found that while 77 percent considered price to be the most important factor when making a purchase, 51 percent rely on brand reputation to make judgements about the likelihood that their insurer will pay out in the event of a claim.
Equally, social media us having an increasing effect on consumer’s purchasing decisions, with 19% of consumers actively relying on online reviews.
Stephen Williams, financial services partner at Deloitte in the North East, said: “While insurers should continue to develop innovative pricing strategies, strong focus is required on brand building and customer experience management.
“Insurers that develop, effectively integrate and execute social media strategies are also likely to gain a competitive edge as the relationship between word of mouth and online interaction continues to blur in the mind of consumers.”
When completing the survey, Deloitte also used statistical modeling to gain insight into consumer choices. They found that consumers with multiple providers spent more time online researching insurance, and were more reliant on online ads than those who spent less time looking online.
Gurpreet Johal, Deloitte insurance analytics lead partner, commented: “What follows is that deeper understanding of consumers’ purchasing habits can significantly improve targeting capabilities.
“Insurers should explore ways of using peripheral information with more traditional consumer information to increase capture rates.”