Brand, not price, drives general insurance purchases: E&Y

MUMBAI: Consumers prefer the brand of the service provider, customer service and convenience over price while buying general insurance products, an Ernst & Young (E&Y) survey has found.

"Pricing is not the most important criterion for consumers when purchasing an insurance product. Brand of the provider, customer service and convenience hold greater importance compared to price," the survey said here today.

The E&Y survey, which covered over 24,000 life and non-life insurance customers across 23 countries about their buying practices with over 1,000 consumers in the country, however, said price sensitivity varies by segments and type of product. The report also pointed out that consumers are increasingly using online mode for research and buying a product.

"Consumers are increasingly moving online, (with) 31 percent of respondents use a range of online channels for research," it said, adding, however, sales activity lags research with only 11 percent customers actually making the purchase.

It also said despite higher use of the online channel, personal contact still remains important in purchase of insurance products.

"Customers are willing to purchase additional products from the same insurer as 69 percent of the respondents saying they will do so, with convenience and better service being the primary drivers," the report said.

It, however, noted that with portability provisions, more number of customers are likely to switch providers in the near future.