The evolution of insurance purchasing behavior: an empirical study on the adoption of online channels in Poland

S ILE S IA N U N IV E R S IT Y OF T E C H N O LO G Y P U B LIS H IN G H O U S E SCIENTIFIC PAPERS OF SILESIAN UNIVERSITY OF TECHNOLOGY 2025 ORGANIZATION AND MANAGEMENT SERIES NO. 228 http://dx.doi.org/10.29119/1641-3466.2025.228.37 http://managementpapers.polsl.pl/ THE EVOLUTION OF INSURANCE PURCHASING BEHAVIOR: AN EMPIRICAL STUDY ON THE ADOPTION OF ONLINE CHANNELS IN POLAND Gabriela WOJAK1, Ernest GÓRKA2, Michał ĆWIĄKAŁA3, Dariusz BARAN4, Rafał ŚWINIARSKI5, Katarzyna OLSZYŃSKA6, Piotr MRZYGŁÓD7, Maciej FRASUNKIEWICZ8, Piotr RĘCZAJSKI9, Daniel ZAWADZKI10, Jan PIWNIK11 1 Pomorska Szkoła Wyższa w Starogardzie Gdańskim, Instytut Zarządzania, Ekonomii i Logistyki; [email protected], ORCID: 0009-0003-2958-365X 2 Wyższa Szkoła Kształcenia Zawodowego; [email protected], ORCID: 0009-0006-3293-5670 3 Wyższa Szkoła Kształcenia Zawodowego; [email protected], ORCID: 0000-0001-9706-864X 4 Pomorska Szkoła Wyższa w Starogardzie Gdańskim, Instytut Zarządzania, Ekonomii i Logistyki; [email protected], ORCID: 0009-0006-8697-5459 5 I'M Brand Institute sp. z o.o.; [email protected], ORCID: 0009-0005-6226-943X 6 Polsko Japońska Akademia Technik Komputerowych; [email protected], ORCID: 0009-0003-4309-6233 7 Piotr Mrzygłód Sprzedaż-Marketing-Consulting; [email protected], ORCID: 0009-0006-5269-0359 8 F3-TFS sp. z o.o.; m.frasunkie[email protected], ORCID: 0009-0006-6079-4924 9 MAMASTUDIO Pawlik, Ręczajski, spółka jawna; [email protected], ORCID: 0009-0000-4745-5940 10 GLOBAL HYDROGEN spółka akcyjna; [email protected], ORCID: 0009-0001-4783-3240 11 WSB Merito University in Gdańsk, Faculty of Computer Science and New Technologies; [email protected], ORCID: 0000-0001-9436-7142 Purpose: The aim of this study is to examine the evolution of insurance purchasing behavior in Poland, with a focus on the growing role of online distribution channels. The paper seeks to understand the motivations, preferences, and concerns influencing consumer choice between digital and traditional methods. Design/methodology/approach: The research uses a quantitative approach based on a structured online survey of 100 respondents. It explores demographics, purchasing habits, channel preferences, and decision-making factors such as price, trust, and convenience. The analysis identifies behavioral patterns related to digital adoption. Findings: The results show a clear increase in the use and acceptance of online channels, especially for simple insurance products. Consumers appreciate the speed, availability, and price comparison offered by digital tools. However, some still prefer traditional channels for complex purchases due to trust and clarity. A hybrid approach is emerging, combining digital access with agent support. Research limitations/implications: The study is limited by its sample size and focus on the Polish market. It does not explore differences by insurance product type. Future research could expand the sample and analyze specific product categories or the role of AI tools in shaping digital insurance experiences. 660 G. Wojak, E. Górka, M. Ćwiąkała, D. Baran, R. Świniarski et al. Practical implications: The findings suggest that insurers should improve the usability, transparency, and security of digital platforms. At the same time, maintaining advisory services is essential to support customers who seek personal guidance. Omnichannel strategies appear to be the most effective. Social implications: Digital channels enhance access to insurance, especially for tech-savvy or remote users. Addressing concerns about trust and data privacy may increase consumer confidence and promote digital inclusion in the financial sector. Originality/value: This paper provides empirical data on Polish consumers' online insurance purchasing behavior. It offers valuable insights into digital trends in the insurance sector and supports strategic decision-making in marketing and service design. Keywords: Digital insurance, consumer behavior, distribution channels, Category of the paper: research paper. 1. Introduction The digital transformation of financial services has profoundly reshaped consumer expectations, access channels, and competitive dynamics across global markets. In this evolving landscape, the insurance sector — traditionally dependent on interpersonal relationships and agent-led distribution — is undergoing a fundamental shift. Digitalisation has moved from being a supplementary tool to becoming a central strategic pillar for insurers seeking to meet growing demands for convenience, price transparency, and user autonomy. In Poland, this transformation reflects broader European trends, with online platforms, comparison engines, and mobile applications increasingly complementing or replacing conventional agent-based models. Nevertheless, the pace and scope of digital adoption vary significantly across countries and demographic groups, highlighting the importance of local market analyses. While international literature on digital insurance is expanding, the specific behavioral patterns of Polish consumers remain underrepresented. Existing studies tend to generalize findings from Western European markets, neglecting the socio-economic, cultural, and infrastructural nuances that characterize the Polish context. Moreover, prior research has largely focused on macroeconomic trends or technological innovation, often overlooking micro-level consumer motivations and trust-related concerns — especially relevant in the case of insurance, where perceived risk and the need for personalized support are high. Consequently, there is a clear research gap concerning how Polish consumers choose between digital and traditional insurance distribution channels, what drives their decisions, and what barriers persist in adopting online solutions. This study aims to fill that gap by providing an original, empirical analysis of online insurance purchasing behavior in Poland. It investigates the frequency and context of digital purchases, explores trust and convenience factors, and identifies the key motivations and concerns shaping channel preferences. The originality of this research lies in its integrated approach, combining theoretical foundations with primary data collected through a structured The role of communication… 661 online survey. In doing so, it reveals the coexistence of digital and traditional models, suggesting that hybrid strategies may offer the most effective path forward for insurers. The findings not only contribute to the academic discourse on insurance distribution but also provide practical recommendations for companies designing omnichannel systems that respond to diverse consumer needs. By focusing on the Polish market — a rapidly growing yet understudied segment — this article adds important insights into the broader European insurance landscape. To address the identified research gap, this study poses the following research questions: What factors influence Polish consumers’ choice between online and traditional insurance distribution channels? How significant are trust, convenience, and price sensitivity in shaping these choices? What barriers discourage consumers from adopting digital channels? These questions guide the empirical analysis and support the development of practical recommendations for insurers operating in an increasingly hybrid distribution environment. The remainder of the article is structured as follows: Section 2 presents the literature review on insurance distribution models and digital adoption trends. Section 3 describes the research methodology, including the survey design and respondent profile. Section 4 discusses the empirical results and key patterns identified. Finally, Section 5 outlines conclusions and practical implications, as well as directions for future research. 2. Insurance Distribution in Poland: Traditional and Digital Channels The insurance distribution system functions within the broader context of the financial system, which serves as a mechanism for allocating and transferring purchasing power among economic entities. According to Zabielski (2004), the financial system consists of financial instruments, markets, institutions, and the principles governing their operations. Insurance services, as part of this system, represent a specific type of financial instrument - intangible, contractual, and based on risk redistribution mechanisms. Their provision and sale require tailored distribution models, adapted to the complexity of the service and the expectations of consumers. The insurance system in Poland reflects the structure of a mixed symbolic and operational system (Kluszczyńska, 2011). It involves public entities (e.g., ZUS) and private market participants such as insurance companies, agents, brokers, and increasingly also technologybased intermediaries like comparison platforms and mobile applications. This dualistic nature - public versus private, traditional versus digital - reflects the broader evolution of distribution strategies in the insurance sector. 662 G. Wojak, E. Górka, M. Ćwiąkała, D. Baran, R. Świniarski et al. Insurance distribution, traditionally carried out through agents, brokers, and branch offices, has evolved under the influence of digitalization. New online channels - such as mobile applications, dedicated customer portals, and e-commerce-style platforms - are increasingly supplementing or even replacing physical intermediaries. As Nowak (2016) note, e-commerce in the insurance market enables cost reduction, faster service, and direct customer engagement, offering added convenience and real-time service personalization. Despite their advantages, digital channels posed challenges in terms of building trust, reducing perceived risk, and ensuring legal compliance. These concerns were particularly important in insurance, where consumers are often wary of purchasing services without personal consultation. Jończyk in 2010 highlighted the importance of regulatory and technological safeguards to maintain data protection and system transparency - key factors for the long-term sustainability of digital insurance models. The Polish insurance distribution system has evolved significantly since the liberalisation of the market in the early 1990s, marked by the Insurance Activity Act of 1990. This legislation laid the foundation for the privatisation and demonopolisation of insurance services, aligning the Polish market with European Union standards (Szumlicz, 2005; Wieteski, 2022; Janikowski, 2015). It enabled insurance companies to adopt a multichannel strategy that includes both traditional and modern (online) distribution models. Traditional distribution channels are primarily composed of sales through agents, brokers, and direct sales via insurers' own branch network. Data from the Polish Financial Supervision Authority confirms this: in 2021, 55.67% of gross written premiums in life insurance (Class I) were generated via agents, with a strong focus on individual insurance products (98.58%). Brokers played a secondary role (3.94%), particularly in group insurance contracts, and direct sales represented 40.33% of gross premiums, driven mainly by group insurance products. In recent years, direct and online sales channels have become increasingly important in insurance distribution. This includes websites, mobile platforms, and call centers, particularly for simple insurance products such as third-party liability (OC), travel insurance, and personal accident coverage (NNW). The so-called "direct" model allows customers to access policies without the involvement of intermediaries, offering convenience, lower costs, and broad accessibility. The development of online insurance platforms posed a competitive threat to traditional intermediaries. Yet, over time, these direct insurers also began to collaborate with agents to increase sales volumes and scale their distribution (Iwanicz-Drozdowska, 2018). From a theoretical perspective, the distribution of insurance may be analysed from institutional, functional, and systemic viewpoints. The institutional approach focuses on entities involved in transferring insurance products from insurers to consumers (e.g., agents, brokers, bank branches). The functional approach examines the flow of value and information between participants, while the systemic view considers the entire network of relationships that structure insurance delivery (Szumlicz, 2020). The role of communication… 663 In recent years, the Polish insurance market has been undergoing a significant digital transformation, reshaping consumer behavior and distribution models. According to Mordor Intelligence (Mordor Intelligence, 2024), the Polish life and non-life insurance market is projected to grow from USD 23.51 billion in 2025 to USD 33.26 billion by 2030, with a compound annual growth rate (CAGR) of 7.19%. A key driver of this expansion is the increasing adoption of digital distribution channels, which are gradually replacing traditional models based on agents and in-person offices. Similarly, the European digital insurance market is witnessing accelerated development, as noted in the Grand View Research report (Grand View Research, 2024), driven by growing internet penetration, rising demand for personalized and on-demand insurance solutions, and the integration of AI-powered platforms in customer service. These trends suggest a fundamental shift in how consumers engage with insurance providers, highlighting the need to further explore the adoption patterns and consumer preferences regarding online insurance channels in the Polish context. Klapkiv, Szymańska, and Bednarczyk (2018) highlight the dynamic growth of online channels in the distribution of non-life insurance in Poland between 2005 and 2016. During this period, the share of gross written premiums from internet sales in total direct sales (Branch II) increased from a mere 0.01% to 17.35%. Their empirical analysis revealed a strong correlation between the level of household internet penetration and the growth of online insurance sales, supported by an exponential regression model with a high coefficient of determination (R² = 86.84%). The authors argue that both technological advancements and legislative changes, such as the implementation of the EU Insurance Distribution Directive (2016/97), have contributed to the increasing importance of digital channels. Furthermore, the growing use of mobile applications, which allow customers to purchase insurance, report claims, and manage their policies, is significantly reshaping consumer behavior and enhancing the competitive edge of insurance providers (Szymańska et al., 2018) Despite the growing importance of digital channels in the insurance sector, existing literature provides limited insights into the specific purchasing behaviors of insurance consumers in Poland. Given the rapid digital transformation of the insurance industry and the evolving expectations of customers, especially among younger demographics, there is a clear need for further empirical research in this area. Exploring the determinants of insurance purchasing behavior in the Polish context offers valuable opportunities to inform both academic understanding and strategic decision-making in the industry. 664 G. Wojak, E. Górka, M. Ćwiąkała, D. Baran, R. Świniarski et al. 3. Research methodology and case description This study was designed to investigate consumer preferences and perceptions regarding different insurance distribution models in Poland, with a particular focus on the growing relevance of online channels. Given the dynamic evolution of digital solutions and shifting consumer behaviors, the research aimed to diagnose the advantages and disadvantages of traditional versus innovative models of insurance distribution. The research adopted a quantitative diagnostic approach, which allowed the author to reach a broad spectrum of respondents and enabled the statistical generalization of the findings. This methodology was chosen due to its capacity to reveal measurable patterns and relationships between consumer demographics and distribution channel preferences. The central aim of the research was to identify the key benefits and limitations of both traditional (e.g., face-to-face with agents) and digital (e.g., insurer websites, comparison platforms) methods of purchasing insurance products. The primary research hypothesis stated that online insurance distribution channels are gaining increasing market share in comparison to traditional distribution models. To verify this hypothesis, a structured online survey questionnaire was employed, consisting of both closedended and semi-open questions. The instrument was designed to ensure clarity and accessibility for a diverse group of respondents. The survey covered the following key areas:  Demographic profile of respondents (e.g., gender, age, education, place of residence).  Insurance purchasing behavior, including frequency and method of purchasing policies.  Channel preferences, with respondents evaluating different distribution methods (e.g., agent-based, online direct, brokers).  Perceptions of key decision-making factors, such as price sensitivity, convenience, and trust. The research sample included 100 respondents, offering a diverse cross-section of Polish consumers. Analysis focused on identifying statistically relevant trends and correlating consumer profiles with channel preferences. Respondents in the study represented a diverse demographic profile. The majority were women (67%), while men accounted for 33% of the sample. In terms of age, most participants (55%) were between 26 and 45 years old, with 10% aged 18-25 and 14% over 55. Educationally, the largest group held a bachelor’s degree (45%), followed by those with secondary education (30%) and a master’s degree or higher (20%), while only 5% had primary education. As for place of residence, the sample included both urban and rural populations: 15% lived in rural areas, 30% in towns up to 100,000 inhabitants, 20% in medium-sized cities (100,000500,000), and 25% in large cities with over 500,000 residents. The role of communication… 665 The research technique used was the anonymous online questionnaire, allowing for efficient data collection while ensuring respondent comfort and privacy. The results were interpreted with awareness of possible limitations, including the relatively small sample size and nonprobabilistic sampling. 4. Research results A summary of the survey results concerning insurance distribution channel preferences is presented in pie charts numbered 1 through 6. Each chart corresponds to one of the six key survey questions posed to respondents. The data illustrates customers’ current choices, expectations, and satisfaction levels regarding various insurance distribution channels, including traditional in-person options and digital solutions. The charts offer a clear visual representation of customer tendencies, highlighting the most preferred methods of purchasing insurance, reasons behind those preferences, and potential areas for development. Dominant preferences in each area have been emphasized in the chart legends, allowing for quick identification of prevailing trends and facilitating comparative analysis across the surveyed sample. In the Figure 1 respondents were asked whether they had had experience of purchasing insurance via the internet. The largest number of respondents ticked the answer “more than once”, confirming the growing popularity and acceptance of digital channels in the purchase of insurance products. A smaller but still significant group answered “once”, indicating their first attempts to use the internet for this purpose. The smallest percentage of respondents indicated “no”, indicating no experience with buying insurance online. These data confirm that digital channels are no longer a novelty and have gained the trust of a large proportion of consumers. The regular use of the internet to conclude an insurance contract means that users are not only testing this way of buying, but see it as convenient and secure enough. For insurers, this is a signal that further development and optimisation of digital platforms is not only advisable, but even necessary. 666 G. Wojak, E. Górka, M. Ćwiąkała, D. Baran, R. Świniarski et al. Figure 1. Frequency of purchasing insurance online. In the second graph we see how respondents indicated which insurance distribution channel they use the most. The most popular was the website and in second place the insurance agent and which shows that despite the development of technology, the traditional form of human contact still inspires trust. However, insurance comparison sites also ranked highly, demonstrating that customers value independence, speed and the ability to compare quotes. The insurance distribution market is clearly moving towards a hybrid model. Customers still need the advice of an agent, but they are increasingly using digital channels as a supplement or pre-selection tool for offers. For the industry, this means that traditional and online channels need to be coherently integrated - for example, enabling a customer to start a purchase online and complete it with the help of an advisor. Figure 2. Preferred insurance distribution channel. The third pie chart shows the distribution of respondents' answers to the question on the importance of price when choosing insurance. As many as 70% of respondents consider price to be an important or very important element when choosing a policy purchase channel. This shows that the insurance market in Poland remains highly cost-sensitive, which may be due to comparable offers and low functional differentiation of products (especially third-party 12% 30% 58% No Only once More than once 17% 25% 8% 17% 29% 4% In person at an insurance agent's office Contact with an insurance broker By phone On the insurer's website Through an insurance comparison website Other The role of communication… 667 liability, accident insurance or travel insurance). The high importance of price is fostered by the growing popularity of digital sales channels, such as insurance comparison sites or mobile apps, which allow customers to quickly collate offers from a price perspective. 22% of those surveyed are not primarily driven by price, showing that there is a group of customers willing to pay more for quality, recommendations or availability of advice. For insurance companies, this is a signal to diversify communication channels and sales arguments - not only through discounts, but also through added values (e.g. fast claims settlement, apps, chat consultants). Figure 3. Importance of price in channel selection. In Figure 4 shows the distributions of responses respondents were asked to rate the attractiveness of buying insurance online compared to traditional methods, such as buying through an agent, in a branch or over the phone. As many as 60 per cent of respondents find online insurance purchases more attractive than traditional methods. This is a very strong indication that the market not only accepts digital channels, but actually prefers them - mainly due to the convenience, speed and availability of quotes. However, it is worth noting that 20% of the respondents do not have a clear opinion and 10% make their decision dependent on the situation. This may be due to the type of insurance (e.g. more complex products like health or property often require contact with an advisor), level of knowledge, or previous purchasing experience. Only 10% found online channels unattractive. For insurers, this is a clear signal that although the majority of customers have converted to the internet, there is still a group that requires additional support and education. 45% 25% 20% 8% 2% Very important Important Neither Rather not important Not important