ABI: Internet insurance offers price benefits

01 September 2006
A spokesperson for the Association of British Insurers (ABI) has noted that the internet could be an "important conduit" for insurance sales in the future.

Jonathan French has said that the internet offers many advantages to both insurance companies and shoppers as it cuts overheads for the insurers and enables more comprehensive comparison of policies for those looking to take out cover.

"Insurance companies encourage people to use the internet to buy policies because it helps overheads and running costs," said Mr French.

"The internet is cheaper than using human resources. That is why insurance companies offer discounts for people who buy their policies over the internet."

Although it offers many bonuses, the internet would still not be the "predominant means by which people buy insurance" in the future, he claimed, noting that many people rated the right kind of policy and customer service above simple sums of how much a policy cost.

Expense seems to be the main concern of those that do their shopping for policies on the internet, Mr French added, whereas those looking for extras such as medical or legal expenses cover were more likely to visit a broker or a particular and trusted company.

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