Capita has conducted a survey into insurance attitudes towards the Internet.
The survey, jointly undertaken with the Economist Intelligence Unit, revealed that more than half of the 72 senior insurance industry executives questioned believe that online brands such as Amazon and Yahoo pose the greatest potential threat to their business. Utility companies like BT and Centrica were also highlighted as a threat by 42% of respondents.
This rising threat is led by the increased prominence of ‘affinity' brands — retailers and high street banks — leveraging their distribution power and brand recognition.
Dermot Joyce, executive director at Capita Insurance Services, said: “The Internet has proved itself to be the channel of choice for price conscious consumers across the globe. It is therefore, hardly surprising that a price sensitive market like insurance is worried about the threat from dominant brands in the sector. The leverage of recognised brands, through affinities, and unrivalled customer service will be the key differentiators of the future.
“The largest Internet companies are not just transactional brands but virtual communities. Amazon and Google did not acquire millions of customers through traditional marketing but through a combination of viral marketing and word of mouth around a useful core service. Today they are sitting on a massive distribution platform, with a relatively loyal customer base, and an enormous amount of consumer data and wondering what else they can do.”
