Insurers need to improve online offering, survey finds

UK home and motor insurers may be missing out on opportunities to pick up new customers by providing a poor online user experience, according to a survey by Global Reviews.

The study, which incorporates findings from consumer audits and attitude surveys, consumer behaviour tracking and an expert audit, was conducted last month.

LV= was the top motor insurance performer with an overall score of 65%, while the AA came last with 45%.

Aviva ranked the highest scoring home insurer at 67%, with Direct Line and Policy Expert each on 51%.

The home insurance industry averaged 49% in the customer evaluation of product information, with a low of 23%. Consumers said it was complicated and time-consuming to find specific product information.

“Across a wide range of criteria tracking the online customer journey from search, consideration to purchase, UK home and motor insurance providers overall scored poorly,” said Global Reviews principal consultant Rebecca Jennings.

“Many sites did badly in helping customers find and compare products; a lot didn’t make any attempt to convince customers why they should chose their brand; quotes are given without much supporting information; completing applications is difficult; and very few UK consumers would recommend an insurer’s site. There are of course, good examples and some providers are doing a more effective job online.”

Site search was particularly poor for both home and motor brands too, with an average score of 27% for home insurance and 35% for motor insurance sites. AXA’s sites were the exception, with a site-wide search that recognises spelling errors and highlights search terms in the results.

The level of information and help offered by many providers around quotes was also found to be poor, and many potential customers faced difficulties completing the application form.

The industry average task success rate was just 30% for motor, with a range from 14% (the AA and Directline) through to 62 percent (LV=), with the average success rate for home being 50% with a range from 23% (Admiral) to 68% (LV=). 

“With the intense and growing competition amongst companies providing home and motor insurance in the UK, companies need to successfully communicate their value proposition online to prospective customers and differentiate themselves from their competitors,” continued Jennings.

“The benchmark shows that the online experience a user has whilst considering a provider will influence their decision to purchase. While some providers are performing strongly in some aspects of the customers’ journey, there is not one insurance company that is maintaining a consistent experience from their homepage through to the online application process.

“There are opportunities for all providers to improve the customer experience, and thus their conversion rates, by providing an engaging online experience and servicing the needs of a customer throughout the entire conversion funnel.”