Title:	FACTORS AFFECTING ONLINE APPLICATION OF INSURANCE PRODUCTS AND ITS IMPLICATIONS
Author(s):	Wee Kheng-tan , Yu-jie Tan
ISBN:	978-972-8924-89-8
Editors:	Sandeep Krishnamurthy
Year:	2009
Edition:	Single
Keywords:	Travel Insurance, Life Insurance, Online Application.
Type:	Full Paper
First Page:	155
Last Page:	162
Language:	English
Cover:
Full Contents:	click to dowload
Paper Abstract:	Insurance sales agents play a very important role in the insurance industry. As the first point of contact with customers, they are instrumental in promoting insurance products of the insurance company. Popularity of electronic commerce has pushed many insurance companies to offer their customers the option of buying insurance products online. Consumers can now purchase insurance products independent of direct service employee involvement, hence creating an impact on the traditional one-to-one marketing employed by insurance sales agents. In addition, it is also known that electronic commerce is not necessarily suitable for all types of products. Given the complicated nature of insurance products, it may be unlikely for Internet to replace insurance sales agents. Furthermore, online mode introduces a new set of online-related criteria which customers need to factor into their decision when they apply online. Since the criteria considered by customers when applying online might not be of equal importance, this research used the Analytic Hierarchy Process to study the impact of the inclusion of these online-related criteria. In addition, this research used the more simple travel insurance and the much more complicated individual life insurance for comparison purpose. This research observed that reasonable premium remained the most important criteria and was applicable to the above two types of insurance. Online-related criteria featured more prominently when customers applied for travel insurance online than for individual life insurance. Insurance sales agents were slowed to appreciate the importance of online-related criteria when customers applied for travel insurance online. On the other hand, the impacts of online-related criteria when customers applied life insurance were less important, resulting in greater agreement between customers and insurance sales agents.
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