Nearly two-thirds (64 percent) of U.S. and Canadian consumersare planning to renew or purchase insurance products through anagent in the next 12 months, according to a survey of 2,500consumers in both countries by Accenture.

While younger consumers also predominantly favor agentnetworks—59 percent of 25-to-34-year-olds prefer buying insurancethrough this channel—almost one-third (31 percent) of them saidthey plan to purchase online in the next 12 months.

“In an environment with tighter margins and increased regulatorypressure, it is critical for insurers to know what consumers wantand how they want to purchase it,” says John DelSanto, globalmanaging director of Accenture’s insurance practice. “We believethat multiple distribution channels will continue to co-existand insurance carriers should continue to better integratetheir channels. Insurers with sophisticated analytic capabilities will be able to betterunderstand their customers’ evolving needs, which products andservices best address those needs and which channels are mosteffective for their situation.”

According to the survey, the top criteria for consumers inchoosing an insurance provider are speed of problem resolution andthe their ability to offer insurance products and services thatmeet their needs, with 68 percent and 67 percent saying this isvery important, respectively. Competitive prices and pricetransparency were also near the top of the list at 65 percent and63 percent, respectively.

Consumers’ interest in price and price transparency was furthersupported by the finding that more than half of respondents (55percent) say they would be interested in using insuranceaggregators—Websites that compare quotes between differentinsurance companies. The proportion is even higher for youngerconsumers, with 75 percent of 25- to 34-year-old respondentsexpressing interest in doing so.

While the survey found that the use of social media to performresearch on insurance products is in its early stages, with 21percent of respondents using or considering using social media forsuch purposes, younger respondents again demonstrated much greaterinterest in this channel. More than a third (36 percent) ofrespondents under 34 would consider using social media to performsuch research.

“With the rise of Internet usage, new purchasing behaviors haveemerged that insurers cannot ignore,” says Erik Sandquist, a seniorexecutive in Accenture’s insurance practice. “Before buying, moreand more consumers perform their own research online, compareoptions and seek recommendations from others, using social mediasites or referral sources. This is very common in sectors liketravel and electronics, but our survey demonstrates that insurersshould expect similar purchasing behaviors from theircustomers.”

Among other key findings:

• Two respondents out of ten (21 percent) are consideringswitching to a new insurance provider the next time they purchaseor renew their policy. Younger respondents are more willing toswitch providers, with almost a third (31 percent) of those aged 18to 24 saying they will not purchase or renew their policy withtheir current provider, or will look around.
• Younger respondents were much more willing to pay a premium forpersonalized advice or assistance when purchasing insuranceproducts, with 39 percent of those aged 18 to 24 saying theywould do so, compared to 23 percent across all age groups.
• Banks are perceived as stronger than insurers with respect tooffering financial advice. Respondents said they were more likelyto see banks as potential “one-stop shops” for financial services,with 47 percent for banks versus 18 percent for insurers. Also, 39percent said they see their bank as their preferred financialadvisor, versus 13 percent for insurers.
• Consumers seek a consistent experience from insurers, no matterwhat distribution channel they use. A high proportion of consumers(84 percent) said it is important that insurance products andservices be identical across available channels, such as agents,online and call centers.

“While our research points to significant opportunities forinsurers who can reach consumers with the right products throughthe right channels, the personal lines insurance market remainsextremely competitive,” Sandquist says. “Our surveyshows that consumers want speed, products that fulfill their needsand competitive and transparent pricing. It is increasinglyimportant for insurers to align their channels to meet these risingexpectations.”