The property liability quote process can be made much less complex for end customers.
Author: Dario Fiore
Digital sales channels are becoming increasingly important for property insurance companies. For customers, the digital quote process needs to be highly user-friendly on the one hand, and on the other hand, they need as little information as possible to quickly receive an initial quote, including the price. However, offer processes are often long and complex, which leads to unnecessary bounces and results in a lower conversion rate and missed leads. In this blog, we will show you how you can do this better, using the quote process for motor vehicle insurance as an example.
What is an important challenge that needs to be solved in a digital quote process for motor vehicle insurance?
Customers want to know as quickly as possible and with as little input as possible whether the product meets their needs and roughly what price they can expect.
Four solutions are proposed below to address the needs of customers in the motor vehicle insurance quotation process.
For some makes and models, there are over 50 detailed types, but they often differ only slightly in price. If the customer is already confronted with too large a selection at the beginning of the process, he may abort the process. If necessary, the exact choice of vehicle can be postponed to a later process step after the offer selection. The customer has then already decided on an offer and is less likely to abort the process.
The customer can adjust these values later in the process if they have already decided on a quote. To identify possible default values, statistics of the most frequent values per characteristic over the previous offers help.
• For example, the application questions (previous damage, driver's license revocations, etc.) are not required for the offer and are more for the purpose of screening out bad risks. The customer can also be referred to sales later in the process (generate lead) or be steered out altogether.
• Other values, however, have a significant impact on the price. Here, the number of inputs must be weighed against the reliability of the price.
Close collaboration between actuarial, product management, IT and user experience helps to identify useful and possible simplifications of the product model and thus additionally reduce the required inputs.
The following business value contributions in various dimensions can be realized with the proposed solutions:
The initial entries by the customer are reduced by over 65%. This allows them to get to the offer and price quickly and easily. Overall, this creates a better user experience.
Strategic goals such as differentiation and customer orientation are supported
New and existing customers can be better addressed and leads generated. By reducing the initial input, the bounce rate is greatly reduced and the conversion rate doubled.
Digital sales channels are becoming increasingly important for property insurance companies. In the corresponding offer processes, customers want to receive an initial offer including price with as little information as possible. This is made possible by:
These measures can optimize the conversion rate and generate more leads for sales. Intuitive, streamlined and user-friendly offer processes help to make the direct, digital insurance sales channel more attractive compared to aggregator portals such as Comparis and allow differentiation in the market.
If the findings described above are taken further, they can also be partially applied to offer processes for home contents and personal liability insurance. Here, too, a large number of inputs are usually requested before an offer and an initial price indication are submitted.