Insurers Slow To Tap Web Site Opportunities, Study Suggests
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The life insurance industry has been slow to grow its consumer-oriented Web sites because of its commitment to agent face-to-face selling, a new study from Conning & Company, Hartford, Conn., finds. Consequently, insurers may be missing an opportunity to increase sales significantly, says Conning, which provides asset management services to insurers.
"Life insurers need to use their sites as an educational tool that both helps the agent close sales and that validates the agent's message for the consumer," says Elvin Turner, vice president at Conning.
Conning analyzed life insurers' Web sites for individual and group life and individual and group annuities. It based its assessments on the insurers' overall ability to use their Web sites to meet specific challenges within their business.
The study, "Life Insurer Web Site Assessment: Opportunities Abound," faulted insurers for neglecting to align their consumer Web sites with company strategic goals.
Insurers in general need to use their sites to make it easier for consumers to buy their products and services, so their brands can contend with increasingly aggressive competition, Conning concludes.
Life insurers need to do a better job of using their sites to support their direct sales efforts, the study says.
Web sites can enable consumers to submit applications or ask questions more rapidly than conventional channels. This can cut the costs of acquiring customers, perhaps to the point where agents might find the middle-market consumer more attractive, the analysis suggests.
