Some 'fun facts' and musings about selling insurance. The case for an omnichannel approach to sales and policy management.

Some background...

Over 30% of all personal lines policies are now completed online, topping 50% for home insurance. SMEs broadly follow the same trend as personal lines, with over 70% buying packaged insurance and over 60% buying online (source: Global Data). This trend is understandably lower in complex commercial cases, where traditional face-to-face and phone sales methods still dominate, but here, too, we're moving more and more towards digital.

...now here's a thing... 75% report having trouble buying insurance online. SEVENTY FIVE PERCENT.

Let's unpick that for a moment - if half of our insurance is being sold online and three-quarters of people polled suggested they had difficulty doing so, what does a customer-centric digital approach do to those numbers? It's hard to say precisely, but it's no great mental leap to suggest that more people would do it if it was easier.

What's in that for brokers? Time, money, reach and 24/7/365 service availability.

What's in it for customers? Access, flexibility, potential cost savings and ease.

I'm a digital advocate (obviously), but regardless, there's no getting away from the fact that traditional sales methods convert at a much higher rate, phone sales are often over 25%. In contrast, you can expect more like 1-5% from digital-only journeys (display ads at the low end convert at the low end; just over 1% of clicks will result in a sale, while Google PPC is at the high end, averaging at closer to 4%).

For businesses primarily reliant on more traditional methods, you can understand the arguments for not changing...

Here's the plot twist... Nobody is asking you to cast aside what you already do well, but not moving with the times is as lazy as it is dangerous. Embracing digital touchpoints presents the opportunity for all brokers to enhance their service model, and as an aside, when we think about growth, digital marketing and advertising provide the opportunity to cast a wide net with granular control over your reach, spending and returns. With relative ease, you can add top-of-funnel and mid-funnel digital advertising to your marketing mix and keep tight control of the numbers.

Even for those like me who grew up with Astro Wars rather than iPhones, online platforms are crucial for meeting everyday customer expectations of access and convenience. An omnichannel strategy combines the strengths of both digital and traditional touchpoints, and given that many customers are quick to dismiss or switch insurers and brokers after negative experiences (upwards of 65%, as it happens), the importance of consistent, high-quality service across the board can't be overstated.

Digital platforms offer efficiency; traditional service offers the human element that digital struggles to replicate.

Omnichannel is something that the likes of Direct Line do very well indeed and their use case provides an excellent, transferable workflow that can cross many lines of business. You can start an application online; they save your data as you go if you get stuck, they provide a phone number and a quote reference, and your broker can pick up where you left off and help you complete an application or answer any questions.

By starting the journey as you choose to, you're in complete control of your purchase journey - having the choice to call or complete the application yourself. Good, that's the customer engagement properly managed. Next, you run into a problem, and your broker comes to your aid. Good again, your customer expectations are being met. The broker does their job properly; you've had a positive experience; if you've not baulked at the price, the stats say, you're now 5-6 times more likely to complete a purchase. It's a win-win.

But what else is there to unpick here? You've reduced call times by 5-10 minutes by getting a good way through a process yourself. Staff are less pressured, phone wait times are reduced for the same staffing levels, and staff only speak to customers who want or need them. If a customer drops out of the application process, you've already captured data and can follow through with re-engagement strategies. You've enriched your CRM, opened the door to cross-sells and upsells, and you've renewal dates for the prospect.

The opportunity for customers to speak with knowledgeable brokers adds advice, reassurance and clarity, but we can still use digital technology to enhance and optimise the experience. Centralising data, allowing clients to trigger MTAs, automation of renewals, automation of multiple carrier engagements, and automation of document production all come into play, all assisted by direct customer input, all while giving the customer a feeling of control and choice in their sales journey.

Do you want your customers to be able to self-serve without losing the personal touch? Then omnichannel strategies serve all parties... Or we can carry on spewing 'marspeak' on our website about how we like to talk and email while fewer and fewer people have the time or the headspace to wait or to listen.

Start thinking like a retailer; your business and clients will thank you.

...and here's the call to action...

To understand how your business can benefit from digital and omnichannel selling, holler... I'm really bloody good at it, and we've developed a methodology to make it happen quickly, cost-effectively and reliably.

to holler:

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0121 616 0093