You can buy just about anything online nowadays, but some industries have been slower to grow the ecommerce channel than others. One in particular is the insurance industry.

Traditionally, if you needed a personal insurance policy, you would call up an agent who would price out different options depending on your personal needs, and if you wanted a competing offer you would have to call another agent and get their prices.All that is different now with the advent of online sales tools such as ecommerce solutions and automated product configurators that can be utilized to not only make purchasing insurance easier for consumers, but also make selling it directly easier for insurers.  Insurers who are on top of their game and get into the ecommerce channel sooner rather than later are going to be better positioned to capitalize from this trend.

A recent report issued by the Life Insurance Direct Marketing Association (LIDMA) said:

“The number of consumers who bought isurance online has doubled since 2006. Price, convenience and a good Web site were the top factors that influenced these consumers. With advances in technology, researchers anticipate that more consumers—especially younger generations—will use direct channels to buy life insurance in the next 5 to 10 years.”

So what does an insurer need to do in order to establish a robust and effective online sales channel?  A high quality ecommerce system integrated into a user friendly and information-driven website is the first requirement.  It is also essential to implement a comprehensive product configurator in order to properly design offers and handle the quote-to-order process.

Those insurers serious about expanding their online sales channel will be the ones to reap the rewards in the years to come.