Consumers’ perceptions of uncertainty and risk factors related to electronic insurance services

Electronic insurance services have been available to consumers in Finland only for the past ten years. Due to this, consumers are more used to arranging their insurance in branch offices or by phone, and they have not adopted Internet insurance services as eagerly as other services provided on the Internet. One reason for this slow adoption is that consumers perceive uncertainty and risk factors related to electronic insurance services. This paper presents the results of a survey concerning the use and reasons for non-use of insurance services available via the Internet. Among the respondents, the most commonly used electronic insurance services were information searches, price comparisons and coverage examinations. The most used services were desired to be available via Internet also in the future. The users of electronic insurance services were mainly active and experienced Internet users. These respondents with previous practice in the use of electronic services perceived lower risks in electronic insurance services than respondents making less use of Internet. Among the respondents, the most common reasons for not using insurance services provided on the Internet were lack of personal contact and the possibility of making wrong choices. Respondents also highlighted their doubts about the safety of electronic business in general and the usability of electronic insurance services.