The firm also reported that the average abandonment rate (the proportion of people who did not complete a transaction) at auto insurer and insurance aggregator sites dropped from 51% in 2004 to 44% in 2005. Ease of use, visual upgrades and overall better navigability of sites are the overall major factors contributing to the decrease from 2004.
comScore also noted that newer innovations such as VoIP and online chat have served to minimize customer frustration and reduce abandonment rates. Agent insurer sites experienced a strong benefit. They saw a 75% increase in submitted quotes and 42% more policies were purchased at these sites in 2005 compared with the prior year. Direct insurers remain the largest insurer segment, with a 61% market share of online quotes.
The auto insurance sector has been slow to find its footing online, but grew faster in 2005 than any other financial services category," said Nicolas Tabbal, vice president of comScore's Financial Services division. "Purchasing insurance online is more involved than other financial activities such as paying bills or applying for credit cards. The rapid surge in online auto insurance quotes and purchases in 2005 correlates to a substantial reduction in abandonment rates across insurer and aggregator sites, and confirms consumers' increased comfort in conducting complex financial transactions online."
To read more about the online activity of the automotive industry, read eMarketer's new Automotive Online: Gearing Up for Greater Spending report today.