This blog post focuses on a specific aspect of the customer experience and its associated benefits: customer engagement within embedded offerings. Offering digitally embedded insurance products allows distributors to increase their acquisition of qualified leads and their online sales at a reduced cost per sale.
At Penni.io, we are passionate about customer journeys, data, digitalisation, etc. Our goal is to make Insurance more transparent and more accessible to everyone.
Driving down the cost of sales and exposing the potential customers to insurance products in a time of their interest, is a game about digitalization and proximity played far away from the insurance industries home field.
That said, you don’t see the same picture across the whole of Europe, nor, indeed, across all verticals. While McKinsey estimated that by 2017 aggregators were already responsible for more than 50% of the UK’s motor gross written premium (GWP), that figure fell to just 10% in the Netherlands.
While having a competitive price is important, the main drivers of online conversion are elsewhere. The context in which we humans make a choice is a powerful driver of our decisions, and this is true for online insurance as well.
Today, we get nerdy! You might have heard about the psychology of price and how pricing should be contextual. This post is going to change your view of the factors that should be incorporated in the pricing model. When you distribute insurance digitally, your pricing strategy can change accordingly. Instead of setting a sellable price, you need to set a buyable one.
When designing effective digital decision processes for insurance sales, the goal is to remove human interaction with an insurance agent. That way, even more of the decision-making will be in the hands of the customer’s System 1 thinking processes (for an explanation of System 1 thinking, see Part 1 ).
If you want to be more effective at selling insurance to customers, you need to know how they buy. That means understanding the decision-making process behind every purchase. What made them look into your product? What made them ask for a quote? And crucially, what made them choose to make the purchase?
What I’ve learned from working with insurance distribution partners is that these distributors are increasingly demanding support for the digital distribution of insurance products. Despite this high demand, they keep running into the same problem: very few insurers are equipped to facilitate digital sales.
With data collection, ‘the sooner the better’ is always the best answer
- Marissa Mayer
For more than 20 years, everyone in the financial sector has been hearing about the magical wonderland/partnership model known as Bancassurance. It’s a model under which insurance companies and banks partner together to sell insurance products to the bank’s customers. Now, the partnership model is on the rise again, with a digital spin this time.
The partnership distribution model holds a lot of promise and can help insurance companies overcome the typical barriers they face in the evolving world of online insurance sales.