INSURANCE POLICIES: ARE THEY REALLY COMMODITIES?
INSURANCE POLICIES :
ARE THEY REALLY COMMODITIES?
- Lisa Smith and Chloe Beaini
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Published: 02 June 2020
Gen Z, currently 20 percent of the Canadian market, is coming of age in a world of online streaming, digital shopping and pay-for-use services. More and more products are being 'commoditized' as we have digital solutions that allow us to compare, select and purchase products quickly. The insurance markets are betting that Gen Z will drive the purchasing of insurance policies
online.
Online purchases depend on factors such as brand familiarity, refundability and the consumer's product knowledge. The market must be able to see goods as interchangeable with no difference in who made them classify them as commodities. With trends pointing towards the prevalence of online purchasing of insurance, we can't help but ask: Is insurance an online commodity?
The original version of this article ran as a two-part series in Canadian Underwriter. To read part one, click here, to read part two, click here.