As the home insurance market moves towards frictionless quoting, is the underlying data up to scratch?

David Spencer, Sales Consultant at Outra

 

There are many reasons why consumers leave application journeys. Whether the process is too long, the questions are too complex, customers have insufficient knowledge, or the simple fact that there are just too many questions.

Abandonment rates for financial services applications can reach as high as 79%[1]. All the effort and money being spent by marketing departments to drive traffic to websites and generate leads is resulting in 4 out of 5 consumers leaving the onboarding process prior to completion. The model simply isn’t working for businesses.

 

Abandonment

Some of the reasons that consumers abandon the process will always be present and unavoidable, however, with the rising collection and management of data, short cuts are available to brands to help to consumers to reduce the number of questions they are asked, resulting in them being asked to ‘check’ answers, meaning the chance of application completion increases.

Steps have been made across the online marketplace to auto populate address data by simply entering a postcode concluding in customers selecting their address for it to automatically complete the form. This saves the consumer a matter of seconds. However, in today’s market, every second counts. E-commerce businesses such as market leader Amazon, have taken this a step further in their checkout process, effectively minimizing the customers input to just a few clicks.

The insurance market is gradually adopting the process, providing the consumer with pre-populated pages for them to check, not complete. The motor insurance sector has led the way using data collected from the DVLA, and allowing consumers to get a car insurance quote with nothing but their vehicle registration number and mileage.

 

Home Insurance: Improved

Could the home insurance market follow suit and generate quotes based just on an address?

Personal and sensitive questions should always be asked first hand, but on the other hand, questions such as number of bedrooms/bathrooms, property type, age of property, and rebuild costs, can be pre-populated using data, giving the consumer the option just to confirm.

In addition, these datasets could also be used to run marketing campaigns with a fully underwritten home insurance quote, as opposed to an estimate. This in turn, will drive a stronger call to action, allowing the consumer to simply enter a unique code on an insurers website and go straight to payment.

 

Competitive Edge

This data is available in the market and could certainly be seen to give companies the competitive edge they need to win with customers, and, more importantly, the reason why a consumer would choose to purchase their product(s) over and above a competitor. The vital ingredients in making this approach work requires high quality data which covers the entire UK property market.

In reality, the easiest route to market will win, and insurers who fail to adopt a streamline approach will be left behind.

Outra has access to every single household survey that has been performed since 2000 and coverage on most variables are over 20 million in actual volume allowing brands to pre-populate home insurance application forms via an API, within seconds.

[1] https://blog.salecycle.com/strategies/people-abandon-financial-applications-online/

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