Online quoting systems: How to build an efficient tool
Consumers want to get the best deal on their insurance and to ensure their dollar is maximized in every possible way. One increasingly popular way to achieve this is by using online quoting tools to find the best rates. Consequently, insurance providers need to be where the consumers are and provide the best online quoting system available.
So where do you begin?
Before implementing any new tool for consumers, brokerages should always start with a needs assessment to determine the company’s specific objectives, and look at all the options for delivery. There are three types of online visitors: Browsers, Evaluators and Transactors. You need to ensure that your quoting system captures the needs of all three groups to be able to increase conversion rates.
Next, work with a service provider to create the statement of work, which outlines the scope of the project and the specific business requirements needed to fulfil your company’s objectives. A good quoting system should always have the following in place:
- a content management system (CMS): A program that helps effectively manage language and content within the site.
- a rules engine: This manages underwriting rules and other business applicable changes that you want to do within the quote process based on specific user profiles. This helps streamline the quote process by using an intuitive question set that would only ask specific profile questions based on prior inputs within the quote process.
- a rating engine: Back in 1999 when Kanetix launched, a large amount of our partners didn’t have their rates accessible via the web. We built our own rating engines that can incorporate carrier-specific rating models for auto, property and motorcycle rates across Canada.
All three of these pieces are important to the online quoting portal, as they help to create an intuitive consumer experience, satisfying the needs of your consumer.
Test, Test, Test
Once your company has outlined its objectives and business requirements, work with a service provider to develop a software tool that will ensure your customers are able to easily navigate the tool. As with any software development process, make sure to build in the time to go through many rounds of quality assurance and testing to ensure that by the time your customers interact with the tool, it offers a seamless experience. It should take approximately 40 business days to get an auto solution to a User Acceptance Environment, then it is recommend to involve a broker or carrier in the process of training and validating logic.
Convert quotes to purchases
Once the online quoting tool is established, the next step is to offer customers the ability to Buy Online (BOL) and to upload to a broker’s management system (BMS)—all features that help minimize the cost and effort to process business electronically.
Brokerages should consider incorporating marketing messages into their online quoting systems. For example, mention your company’s competitive pricing, quality customer service or efficient claims process that differentiate you from your competition. It is also helpful to work closely with your marketing department to ensure they are also communicating the features of your online quoting system, which will in turn drive traffic to your website to complete quotes.
Lastly, ensure your brokerage’s online quoting system is designed to provide the consumer with a customized, seamlessly integrated solution from your informational website. Ensure you are quoting as many markets as possible to get the best rates for consumers, as well as have an intuitive, easy to understand question set within your quotation device.Don’t forget to measure
In today’s fast paced digital environment, success can be measured instantaneously through the use of web analytics tools, such as Google Analytics, Omniture and Webtrends. The ideal online quoting system should be adaptable and easily re-configured based on the specific results from these tools.
So how much does this cost?
There are two parts to pricing these solutions. Initial licensing and configuration set-up costs, and then monthly recurring fees. Prices here range broadly depending on the engagement model for product suite and reach of the solution. For brokers looking to invest in this channel, it’s important to discuss a variable model with a provider.
Other helpful tips
It is extremely helpful to provide glossaries and frequently asked questions (FAQs) to help consumers during the quotation process. However, ensure you only provide responses to questions that are absolutely necessary to provide a rate.
It is also beneficial to streamline the process behind the scenes (offline) to achieve operational efficiency throughout the whole process. For example, ensure the data is being uploaded to a broker. If you write standard and non-standard business, find a way to seamlessly capture consumer information and send them down the correct sales channel.
Finally, time is money. It is a good idea to start with a smaller, well defined pilot project. Then take the learnings to build, analyze and enhance as you go. It is also good to leverage the expertise of someone in the field who has built a similar tool for your competition in the online space.
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