Personalising your insurance website makes the quote journey magical for customers and boosts sales. It should be easy .... but only a few insurers are doing it, and they are generating much higher sales than competitors as a result.In this blog, I look at why customers don't like the traditional insurance purchase process and want it to be personalised. At Optalitix, we offer technology to our clients that personalises insurance quotes, and we have seen our clients' sales increase by 10% to 50% as a result.
Why is the insurance quote drop out rate so high?
People are impatient. They are used to Google or Amazon where they can do their search and find exactly what they want with almost no effort. Yet when it comes to insurance, we treat all our customers the same and throw barriers in their way. We force our customer to answer difficult questions:
- What product should I choose?
- What is the right benefit level?
- Why do I have to put so much information on the quote form?
- How do I answer all these complex underwriting questions?
Behavioural economists tell us that people prefer not to think when making a purchase, and buying insurance requires a lot of thought. As a result, they delay their insurance purchase until a better time (often never). When they do apply online, they frequently drop out of the web process and seek human advice, resulting in web conversions that look awful. Insurers then believe that the online channel doesn't work for insurance. Well, online does work (this is the internet age, after all), it's how people want to buy everything, including insurance, they just don't like the current one size fits all approach for selling insurance!
A personalised web journey is like magic
There is so much data about customers available - what they like, what products they buy, how they want to be buy - that real personalisation can become a magical experience. The old corner store where the owner knew you and exactly what you wanted is back, and is available online. The best websites will use hundreds of data points and algorithms to personalise your experience without you even realising it.For example, Google knows what you are searching for based on your location, the context of your request, what other, similar people have asked for, and lots of other data items. There are at least 20 visible algorithms running on Google in addition to the basic search algorithm that gives your search answer (there are probably even more running in the background), That's magic, but we are so used to it these days that it has stopped amazing us - until we step into a traditional insurance journey and are forced to think again.
Insurers can create magic too
Insurers have access to the most amazing data on their customers - from external sources, and their own internal data on applicants and customers. This data, when combined with smart algorithms, can create a magical experience for customers in real time. In an instant, as the applicant passes the first screen in the quote process, they can provide the answers to all of these questions:
- What is the best product to offer this customer?
- What is the value of the sale to our business, and the likelihood of it happening?
- What is the best channel (online / telephone / broker / email / post)?
- What is the most appropriate marketing messages to display?
We can help you make magic
So why don't insurers create a personalised customer journey? The reason is the variety of skills required to make it happen. You need the database and system skills to get the data into the process (quote data, as well as other internal and external data), the analytical skills to give the data meaning (see data analytics), the website and marketing skills and system capability to run the models in real time, and the ability to monitor the impact and make the models learn from past experience.Optalitix provides these skills in our custom built platform that allows our clients to focus on the website development and sales, with the web personalisation and insights provided via Optalitix API's. The personalisation process is quick to set up, and all the monitoring and maintenance systems are hosted by Optalitix. (See AI for insurance for more information).So there's no reason to hold back - get ready to boost your sales and personalise your customers' experience.Dani Katz
What are the four types of artificial intelligence?
Reactive machines, theory of mind, limited memory, and self-awareness are four main types of AI categories to be aware of. Read more about them in this guide.
What are the 3 V's of big data?
What are the 3 v’s of big data? Find out more as the data experts at Optalitix explain what they mean by using examples to illustrate each of them.
How to Become a Data Scientist
When pricing a new product, the starting point is almost always Excel. Learn how to create a pricing application from a spreadsheet pricing model here.
Holiday AI Thoughts
The key to selling is to establish a relevant dialogue and understanding with your clients. Find out how AI systems can be used to target the right consumers.
Artificial Intelligence powered insurance is now inevitable!
AI is changing the competitive landscape for insurers by delivering a competitive edge in a number of areas. Read more about AI in insurance.
AI Accessible for all - Ignore at your peril!
As AI continues to develop, businesses of all sizes will need to engage with the technology and embrace the power of machine learning to improve their processes.
The Computable Game
Data analysis with Optalitix—an online underwriting tool offering advanced data-based services, including database management and analytics to insurers & bankers.
AI and machine learning in a GDPR environment.
GDPR refers to the EU’s upcoming data protection regime. Find out whether the anonymisation of data, as prescribed by GDPR, would break AI models and more here.
Cultural diversity drives better AI outcomes
Agile organisations that can respond to the global challenges of their often multinational customer base are often the ones that thrive. Read more in this guide.
Why cant lending be like Uber?
Lending is constantly changing with entrants, regulations and technology. Learn how technology can give businesses market leading edge like Uber in this guide.
Why are Insurers playing a guessing game?
Numerous insurers overlook advanced solutions. Make sure your company leverages valuable insights from its data to enhance the user experience with Optalitix!
The future of life insurance
In the past, choosing the right life insurance was an arduous task. Thanks to data analysis and algorithms, shopping for life insurance has become much simpler.
Insurance quote personalisation is magic!
Dani Katz talks about how Optalitix can improve every aspect of the insurance business through better use of data, quotations and more. Read more in this guide.
A meaningful connection. The next phase of API relationships.
Data analytics and API closely intertwine, but what is the next phase in their relationship? Learn more about this successful financial connection here.