The technology-savvy Gen-Y is used to settle businesses through mouse clicks. When it comes to buying insurance, you can hardly expect any exception. There is no denying the fact that the World Wide Web has made the insurance buying process simpler, time-effective and, in most cases, cost-effective also.
Almost all types of insurance products, namely health, home, auto, travel and even life coverage are available online for purchase. In fact, there are some plans which are exclusively available on insurer’s website and you won’t get them from branches or agents.
However, this apparently tempting option may not always bring the best prospect for you. The system has downsides too and in this article, my attempt is to look at the both sides of the coin.
Pros
1. Convenience
Probably the biggest reason behind the success of online insurance business is the ease of operation both from insurer’s and customer’s points of view. You just sit on the sofa, start your laptop and browse through the details of a policy, get quotes and if everything is clear, you don’t hesitate to buy it.
There is eventually no paperwork involved. You can buy it in the midnight; you can buy it on the Christmas Eve. The online branch is open for you 24/7, 365 days a year.
2. Time-effectiveness
Making an appointment with an agent, visiting the branch, filling multiple forms etc. are definitely time-consuming. And there is no guarantee that you don’t have to repeat the process multiple times before you finally buy a plan. Being online you skip the meeting and discussion phase. Besides, you can configure automatic form-filler in your system which will save more of your time.
3. Scope for Comparison
One amazing thing about online insurance buying is that you can compare similar plans of different insurance companies at the same time. You can visit multiple websites simultaneously and have the details of each plan open on your screen in separate windows or tabs. This helps in comparing figures like premium, coverage etc. and you can come to a wise decision saving unnecessary spending of money.
4. No Push-sell
When an agent comes to you, his primary goal, in the majority of the cases, is to sell the insurance product and to make you sign the contract. An online insurer’s website also contains varied advertisement elements, but the best part is that they are mostly avoidable.
5. Cost-efficiency
Online-only insurers definitely enjoy some cost advantage as they don’t need to pay agents’ commission, build physical infrastructure etc. Understandably, online plans come at a cheaper cost than regular plans.
Cons
1. Lack of Personal Touch
While buying insurance online, you face the difficulty that there is nobody to discuss your requirements and to clear your doubts. Some insurance plans are complex than others and choosing them on your own may seem really tricky. Taking to a human agent, some customers enjoy a psychological comfort, which is missing in case of online plans.
2. Waiting Time
In the case of online purchase, you need to wait to get your queries answered. Unless your insurer offers a very efficient customer support via live-chat or call-center, the usual procedure is sending query e-mails or calling during the open hours. There is nobody whom you can contact immediately.
3. Information Theft
Hackers have made the internet vulnerable and storing your personal and financial information online may cause you extra trouble.
4. Misleading Quotes
Online quotes are often deceptive in the sense that they include hidden costs, unexplained terms etc. There can be exclusions from coverage and these are not always clearly mentioned.
5. Lack of Flexibility
Online plans are set in advance and there is very little scope for adjustment according to individual customer’s needs. Offline plans, on the other hand, involve modification options and the possibility of bargaining on the premium amount.
Final Words
E-insurance business is now on a fly and there is no harm in taking advantage of its progress. To save yourself from unnecessary hazards, just make sure that you have control over the downsides.
