Automobile insurance is the most relevant product in the “non-life” insurance field. And, due to its mandatory nature, it is a product with which a large part of the Spanish population is familiar. In this way, we all know the meaning of third-party insurance, with deductible or comprehensive insurance. Not in vain, this sector moves more than 12 billion euros in premiums, data from the year 2023.
Despite being a sector that has evolved over time, adapting to both regulatory changes and market needs, lately the biggest changes are being seen in the uses and demands of customers, especially with regard to the hiring process.
For this reason, it is key for companies in the sector to be aware of the consumption trends of these users. In this sense, the price comparator Check24 has analyzed the five trends in the car insurance sector for 2024.
Although it is something that should already be incorporated, there are still numerous companies that have not finished developing the technological processes necessary so that consumers can purchase car insurance without the intervention of an agent or the need for a call.
This means that many users, accustomed to consuming 100% digitally, do not understand the need for additional steps such as a call, which negatively affects their purchasing experience, as well as the conversion of insurance companies.
According to data provided by the company itself, insurers with 100% online contracting processes sell 4.5 times more car insurance policies than those that require a call.
Offering a 100% final price is vital for an insurance brand or comparator to give confidence to its potential client.
The experience of the sector, as well as various surveys, reveal that price changes during the process of contracting car insurance generate frustration and distrust among users. This data is also supported by an analysis of customer ratings on platforms such as Google, Trustpilot or eKomi, where 70% of the negative comments related to comparing and contracting car insurance refer to the lack of reliability of prices.
Fortunately, fewer and fewer insurers use hook prices to attract their customers. However, price reliability continues to be one of the major pending issues in the sector and currently, there are still 69% of cases in which the price of car insurance undergoes some change.
Specifically, 59% of the time the change is upward and only 10% of the time it is downward, according to a company study.
One of the great challenges of digital contracting is to offer clients the most visual, clear and transparent information possible.
While it is true that insurance is a complex product, with multiple clauses and particularities, it is vital that companies in the sector do everything possible to make it easier for their clients to read and understand this information, with visual terms and conditions that make it very clear. Both coverage and exclusions are clear.
All of this increases customer confidence and speeds up the contracting process, but also avoids complaints and claims.
Being able to identify the vehicle model through the license plate, remember previous searches or the possibility of saving the form data to return to it later.
These are clear examples of how through technology it is possible to make life easier for the user and create a successful experience, as well as improve the conversion of insurance companies during the contracting process.
In the case of the comparator, 48% of customers already use the license plate finder, which saves up to 6 steps in the process. While recurring customers, who are almost 10%, can save between 27 and 36 steps in each new search, which is equivalent to approximately 3 minutes compared to hiring from scratch.
Providing advisory tools that help customers make a purchasing decision is another key to the success of e-commerce in other sectors, such as physical products or travel, which is not yet widespread in the insurance sector.
These are some valid examples to generate trust when purchasing insurance:
In short, taking these trends into account in order to improve the experience of users and future clients will allow us to gain confidence in a sector that comes from a historically analogue trend.
