NU Online News Service, May 19, 3:36 p.m.EDT

Three-quarters of U.S. consumers prefer buying insuranceproducts through agents and other trusted sources, but younger andhigher-income consumers are more inclined to buy products via theWeb, a survey has found.

Accenture, the global consulting firm in Chicago which took thepoll of more than 1,000 U.S. consumers, said younger andhigh-income buyers are also more inclined to switch insurers.

An executive with the firm said insurers are failing to utilizethe Web to gain new customers.

Overall key findings include: 73 percent said they prefer to buyauto and home insurance products from an agent, and 75 percentprefer to buy life products from an agent or another trustedsource, such as an employer or financial advisor.

Younger and more affluent customers were found more inclined topurchase products via the Web versus purchasing products through anagent. The survey showed that 39 percent of consumers aged 18 to 24and 28 percent of consumers in the higher-income bracket withincomes above $60,000 said they would prefer to buy insuranceproducts online versus with an agent.

Even more youthful customers were inclined to purchase auto andhome products online; 43 percent of consumers aged 18 to 24 and 39percent of consumers aged 25 to 34 said they are more likely to buyauto and home products online.

Sixty-eight percent of auto and home consumers said they do nothave sufficient income to pay the bill, and 53 percent said theyfeel they are paying too much for their policies.

One in six respondents is "in play," meaning they areconsidering purchasing an auto or home insurance policy with a newinsurer over the next twelve months--with cost savings as theprimary goal for 46 percent, Accenture found.

The company said consumers aged 18 to 24 (29 percent) and 25 to34 (27 percent) were more likely to switch insurers when comparedwith elder groups. Additionally, consumers with incomes above$60,000 (22 percent) were more likely to switch compared withconsumers who had incomes below $60,000 (13 percent).

Consumer confidence in auto and home insurance carriers wasfound to vary by age, with younger consumers questioning theirinsurance companies' ability to provide sufficient coverage forthem during the current economic times.

Of individuals aged 18 to 24, 43 percent either had someconcerns or didn't have confidence in their carriers' ability toprovide coverage, compared with just one quarter of those (26percent) in the 45-plus age groups.

Michael Costonis, director of Accenture's insurance practice inNorth America, said, "Product complexity and customer serviceappear to be a driving force behind consumers' preference foragents and their resistance to new insurance purchases."

He noted, "The promise of the Internet is strong, yet insurershave lagged behind other industries in harnessing it to improvecustomer acquisition and retention. Insurers have an opportunity toattract younger and higher-income consumers to more straightforwardproducts via the Web. Distribution needs to match customers' needs,and insurers need to take a targeted approach for younger andhigher-income consumers."