02 February 2021
13:03
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Brokerage remains the preferred sales method for Belgians for their insurance, but direct electronic sales are set to develop.
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The latest figures released by Assuralia were clear: in the Belgian insurance sector, brokerage still has a bright future ahead. In 2019, brokers were selling just over half of insurance products. That same year, electronic commerce, or the subscription of insurance by Internet without the intervention of an intermediary, represented, for its part, only 0.2% market share.
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This starving proportion can only be led to change. In 2020, due to the containment measures following the pandemic, consumer practices have been transformed. An observation that can already be made in the banking world, but whose insurance is not spared, according to data from Corona Direct, one of the main direct insurers in the country.
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Strong increase in 2020
“Over the past year, we have seen a 7% growth in claims for our auto insurance products,” said Els Blaton, CEO of Corona Direct. At the same time, the market was contracting by 20%. “In the same way, 73% of new automobile policies were taken out via an online application“, she adds.
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“For individuals, some 80% of insurance products could be sold directly online with the necessary transparency.”
The Blatons
CEO Corona Direct
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The trend is also observed in the other products of the direct insurer, as the number of online claims relating to fire insurance has jumped by 120% and that for dog insurance by 145%. The fact that a large part of advertising is carried out via social networks may also explain the increase in digital sales.
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Decline of the telephone
While, for nearly fifty years, the phone was the main acquisition channel for Corona Direct, its role is declining inexorably. This only represents 27% of the contract conclusions. Even as regards assistance, the telephone sees its usefulness gradually eroded by chatbots.
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Would human intermediation be endangered in the sector? “Subscription by phone is doomed to disappear eventually, but it will still require human contact “, believes Els Blaton.” As regards individuals, some 80% of insurance products could be sold directly online with the necessary transparency, but some customers will always ask for human expertise.”
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Brokers keep a big advantage in the field, which should not hamper the development of direct digital selling in the medium term. “In the end, it will always be the customer himself who will express his preference”, concludes Els Blaton.
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