Trends in Online Insurance Purchasing Habits Point to Enhanced Opportunity for Agents and Brokers

New Chubb research underscores need for multiple resources in choosing appropriate coverages

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Feb 28, 2019, 10:30 ET

WHITEHOUSE STATION, N.J., Feb. 28, 2019 /PRNewswire/ -- A new survey from Chubb, "Winning the New Client Journey," finds that more than half of consumers (53%) have shopped online for homeowners insurance in the past 12 months, and 61% are likely to do so in the future. According to Chubb, this trend in researching and shopping online underscores an enormous opportunity for agents and brokers to more effectively help their clients choose the right coverage to meet very specific needs.

"While the option to shop for homeowners insurance online can appear to be a time saver, there is risk in using the same online shopping strategy as buying a pair of shoes to purchasing homeowners insurance," said Mary Parsons, Executive Vice President, Sales and Distribution Leader, of Chubb Personal Risk Services. "Insurance can be very complex, especially for those that are financially successful and have a number of valuable assets that are in need of customized strategies to ensure they are properly protected from a range of unanticipated, adverse events. One size does not fit all, and independent agents and brokers are uniquely positioned to help clients make sense of all the information available online, so that they can choose the right coverages, with peace of mind."

According to Chubb's research, successful individuals and their families are the most likely to browse home insurance offerings online, with 69% and 73% reporting that they have or plan to do so, respectively—the most of any income groups. Of all respondents, the plurality (35%) cited saving time as the top reason for purchasing insurance online. The report also highlighted some advantages of working with agents and brokers as part of the process, with 67% highlighting the advice they receive on how to protect one's home, and 64% acknowledging the benefits of being able to talk to a real person in the event of a claim.

For agents and brokers, helping clients choose the right plan is about more than finding the lowest cost option. In fact, 80% of survey respondents said that agents and brokers should prioritize getting the right insurance policies for protection over getting the lowest price. Furthermore, 54% of successful families and individuals surveyed said that agents and brokers actually lose credibility when they lead with the lowest cost option.

"As part of our efforts to better support agents and brokers in meeting their clients' needs, Chubb is making a number of investments to further enhance our clients' experience when it comes to protecting assets, purchasing proper coverages, filing claims, paying bills and mitigating exposures overall. Clients' needs and preferences continue to change at a rapid pace, and we are always looking to do more for our clients and ensure our products and services remain relevant in an ever-changing environment," Parsons added.

Digitizing the Client Journey

In response to consumer needs in today's digital world, Chubb has recently made technological investments by rolling out:

A Chubb Mobile App, which allows clients to manage their policies and claims, get their auto ID cards, pay a bill, view billing details, access Chubb Catastrophe Services and more;

Chubb @ the Wheel^® Teen Driver App, which helps to encourage safe driving habits;

Text and email alerts to clients for real time updates, including: billing and claims notifications, eligibility reminders for Chubb Wildfire Defense Services (at renewal), and account security notifications;

eSignature of policy documents;

Easy online enrollment in Wildfire Defense Services in areas where coverage is available; and,

Investments in next generation technology like aerial imagery (e.g. satellite images and drone technology), helping clients affected by natural catastrophes receive expedited claim processing, and new home technologies such as automated water shutoff devices to help clients avoid a major inconvenience.

To help agents and brokers learn about consumers' purchasing journey, how to succeed in today's digital environment and help clients find the right plan, Chubb is launching a new resource center that includes quick informational videos, resources, and tactics agents and brokers can download and use today. Agents and brokers can access that resource center at: www.chubb.com/winthejourney.

About the Survey:
Chubb's "Winning the New Client Journey" survey analyzed how individuals purchase insurance today and the value they see in working with independent agents and brokers. The nationwide survey was fielded between November 7, 2018 and November 19, 2018 and conducted by Research Now. The results are based on 1,201 responses, of which a quarter (25%) of respondents each came from the middle class ($50,000-$99,999 in annual household income), upper middle class ($100,000-$499,999), mass affluent ($500,000-$999,999) and high-net-worth ($1,000,000 or more). Fifty four percent of respondents were male and forty six percent were female.

About Chubb:
Chubb is the world's largest publicly traded property and casualty insurance company. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. As an underwriting company, we assess, assume and manage risk with insight and discipline. We service and pay our claims fairly and promptly. The company is also defined by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb maintains executive offices in Zurich, New York, London, Paris and other locations, and employs more than 30,000 people worldwide. Additional information can be found at: chubb.com.

SOURCE Chubb