An interesting development in streamlining the quotation process. Pegasystems recently commissioned YouGov to survey +1600 British insurance customers about their attitudes to the insurance renewal quotes process and what solutions make them renew. The key findings were:
• When it comes to the renewal of an insurance policy, most consumers (62%) will invest the time to search for the best price from a range of providers
• However, despite this desire to “know what good looks like” consumers don’t like searching for a new policy. When asked to describe what best describes the process of hunting for a new policy at renewal, 30% of all GB adults with insurance surveyed said “frustrating” and 16% said it was “time-wasting”. Only 9% described the process as “satisfying”
However, to avoid searching for new policies, there was a positive response for creative solutions by insurers:
• 73% of consumers said being given a quote comparison with equivalent insurers in the market to assure them the quote is reasonable would encourage them to renew with their current insurance provider.
•69% said being offered a reasonable, fixed, three-year deal on insurance premiums with no increase in cost would make them likely to stay
• Making the renewal process simpler and personalised also ranked highly with over half of consumers (60%) saying this would be likely to make them renew with their existing insurer
The clear message from consumers is they find the quest for new deals at renewal frustrating and a waste of time. They want their time back, the work of crafting a better deal done for them, and to be confident that they are getting a reasonable deal.
For insurers fighting to retain customers it is significant how consumers are willing to make a commitment back to the insurer who will give them that comfort through innovative offers and better, personalised service at renewal.
Re-imagining renewals to benefit everyone requires new digital and agile operating models, based on technology which can personalise the balance between making money and giving real long term value to the customer. At the heart of this technology must be AI and real time decisioning, pre-emptively helping customers to make good, informed decisions about where to place their business.
By doing this, insurers can make the renewal process less frustrating. They can also break the vicious cycle forced on them of “new customers only” pricing, reward loyalty and kill off the loyalty tax stigma. Everyone is happy!
A UK start-up insurance company has launched a home and contents offering which it says allows consumers to find and buy cover in minutes – crucially, by asking four questions rather than the typical dozens. “With far too many other insurance providers and comparison websites, the number of questions required to take out home insurance is completely unnecessary but remains the industry norm. In the data-rich world we live in today, we should not have to rely on the consumer knowing these answers,” said CEO and co-founder Goodman. Research conducted by the firm found that 95.6% of respondents could not accurately answer one or more of the typical questions asked when taking out home insurance without having to leave the buying process. As well as being a chore for users, that could mean insurers losing out on business.