New Zealand consumers are becoming savvy in online shopping for their home, contents and car insurance, according to national market research commissioned by the insurer Youi NZ.
The research showed that New Zealand householders and car owners are turning to the Internet to check out their insurance options with one-quarter of the nation’s householders (25%) and almost a third of car owners (28%) shopping online for insurance.
Youi CEO Frank Costigan said that “the research showed New Zealand customers were changing their shopping behaviour, with many now choosing to do business, especially when shopping for their insurance, online”.
“New Zealanders aged 18 to 29 years were the group most likely to shop online for their home and contents insurance (46%) followed by those aged 30 to 44 years (41%). Only 10% of householders aged over 55 years would shop online.
“The research showed that when it came to shopping for car insurance there was an even greater number of New Zealanders going online with 28% opting for the convenience of the net.
“The research again showed the younger generations are more likely to go online. Those aged 30 to 44 years were the most willing (48%) to shop for car insurance online followed by 18 to 29 years old (42%). Only 14% of car owners aged over 55 would shop online,” said Mr Costigan.
The study showed Auckland car owners were the most likely to use the Web (36%) while 33% of owners in Wellington would do so followed by 27% in Waikato. Only 17% of Canterbury car owners would opt for an online car insurance quote.
“While New Zealand remains a heavily consolidated insurance market, with the two major players dominating, the research showed consumers were prepared to research online, which is critically important for a new entrant like Youi," said Mr Costigan.
“As a result, in April this year, we significantly modified our operations to enable New Zealand customers to complete a full online quote and purchase, without the need to speak to a sales advisor. Importantly, we have provided customers with a 10% online discount to reflect the lower cost of this sales model."