• by Jack Loechner , Staff Writer @mp_research, March 27, 2006

According to an analysis released recently by comScore Networks, the total number of auto insurance quotes submitted online increased by 24 percent in 2005 versus the previous year, and insurance policy purchases jumped by 29 percent during the same time period.

Nicolas Tabbal, vice president of comScore's Financial Services division, said "The auto insurance sector grew faster in 2005 than any other financial services category. Purchasing insurance online is more involved than ...paying bills or applying for credit cards.  The rapid surge in online auto insurance quotes and purchases... confirms consumers' increased comfort in conducting complex financial transactions online."

Some factors that contributed to the drop in the auto insurer site abandonment rate from 51 percent in 2004 to 44 percent in 2005:

• Visual and functional upgrades have enhanced insurer sites, improving navigability, ease of use and site customization. Most insurer and aggregator sites consumers can select from a menu of coverage options and receive recommendations tailored to their specific needs and circumstances. 
• Technological innovations such as VoIP and online chat enable consumers to connect directly with insurers at any stage in the process, resulting in an increase of quotes submitted at agent insurer sites of 75 percent, and 42 percent more policies purchased online.  

* Aggregators only refer consumers to insurers' sites to complete policy purchases.

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