As British consumers become more Internet savvy, the latest
market research suggests they are leading the way when it comes
to buying financial products online. In 2002, 1.3 million of
us bought car insurance over the Internet, more than half of
the total for the whole of Europe.
Now the UK's first wholly online car insurer, elephant.co.uk
is encouraging more people to use the Internet to benefit from
the convenience, speed and lower premiums available to online
shoppers.
Research by leading market researcher, Mintel reveals the
huge growth in people buying insurance online. Its research
shows 18 million car insurance quotes were generated on the
Internet in 2002, 76% more than in the previous year. elephant.co.uk
predicts this figure will rise by a similar amount this year,
it has provided 800,000 quotes already in 2003.
Head elephant at elephant.co.uk, Nicole Joyce, said, "Until
recently motorists have used the Internet mainly as a source
of information, comparing quotes and products, but still buying
their policies over the phone. But now they are more comfortable
actually buying online and are realising the benefits it offers."
Buying insurance on the Internet is faster, more convenient
and cheaper than over the telephone. elephant.co.uk's own research
found getting a quote online is on average two minutes quicker
than over the telephone. Online consumers can also check and
compare prices almost any time of the day. But the most important
benefit of buying online is the price, most insurers give at
least 5% discount to people who buy their insurance this way
and some give even more.
Nicole Joyce, said, "The insurance industry has undergone
a revolution since consumers could first buy insurance direct
over the phone in the mid 80s. Online insurance is just the
next stage, once consumers feel confident buying over the Internet,
they will realise the benefits. Mintel's research suggests
the number buying online is due to increase rapidly over the
next few years and with British drivers leading the way, its
motorists who will benefit the most."
According to Mintel, the online car insurance industry was
worth £187million in 2002, representing 8% of all premiums
sold. elephant.co.uk predicts it will be close to 15% this
year.
Issue date: 23-06-03 |
