Consumer mindset has changed with regard to online shopping,” says Clifford Gallant, managing director at Nomura Securities. “It’s not just buying a pair of socks online anymore; people are comfortable buying things that are more complex like insurance,” Gallant says. “There’s a greater trust in the Internet. There was a time when people didn’t feel that way.”
Policies purchased online have more than quadrupled over the past decade, Nomura notes in its report. One reason for the rise in online transactions might be that people are less concerned about security issues—or might not even be aware of them, Gallant says. Another is that they have had satisfying experiences and have saved money buying other types of products online, and decided to do the same with insurance.
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