Why Online? Why Offshore?

Working constantly in the insurance business online, face me daily with the questions: How can I trust an insurer online? How can I trust an offshore insurer? How do I know claims will be paid? Who else bought from you? And many more questions, all aimed to satisfy the hesitation online customers have.

I find few types of customers online:
"The Natives": those that the internet is their natural habitat: they look for info online, they shop online, and usually make payments online. Their questions are usually not posed. They either find answers online (searching the web for confirmations and verifications, looking in the FAQ, "playing" with the options the website provides them with). They either buy from you or not. It is very difficult to change their decision; however, they are the majority of our customers.
"The Seekers": these are people who use the internet as a supporting tool. Usually, they will buy from other sources: insurance agents or brokers, phone or direct insurers. The internet serves them as an additional ground for finding information: comparing rates, seeing the alternative. They are rarely our customers. If we want to acquire these people as policy holders, we need to establish physical contact – not by email: telephone conversation may help.
"The Hesitants": These are not "Natives", but they search the internet for possible solutions. They may do that because they do not have other option. They buy sometimes – but they have a lot of reservations, and many questions. Their experience in using the internet is a bit limited, and they need further guidance and assistance.

The entire Customer Support Operation is created to support the "Hesitants". It is difficult, and we know that failing to satisfy them cause a major headache: they spread the word that we are no good – only because they try to justify why they did not buy – or succeed to buy.

Not every person can buy online. I mean not only those who do not go online to search for a possible solution, but those who do search and in need of a solution.

I tend to define the place of the Offshore Online Insurers as a "Solution Not Available At Home".
If you can get a similar policy from your next door insurance provider – agent, broker or carrier – go ahead and do it. Even if you can get a cheaper deal online, there is no substitute for the local provider. Most of the local providers have online options anyway, so if you want it online – you can take it from the comfort of your living room.

Offshore Providers are better used when the solution is not available in your homeland. You should than examine your needs and try to buy a policy that first meet your needs, and then try to make gradual payments, to ensure you are covered for the premium you paid time wise.