Tuesday Tips – 5 Ways P&C Insurance Firms Can Improve Their Coverage Tools

by on Jul 10, 2012

altEvery Tuesday, Corporate Insight releases recommendations to help financial services firms improve a key aspect of the online user experience. Recommendations are taken directly from our Monitor Reports and Consulting Services research, which cover the banking, brokerage, credit card, asset management and insurance industries.

This week’s recommendations come from our Property & Casualty Insurance Monitor report titled Coverage Tools: Evaluating Insurance Needs and focus on ways P&C; insurance firms can improve the online coverage tools they offer consumers.

1. Collect Key Information to Increase Personalization – To provide users with the most personalized recommendations, coverage tools should collect all information about clients that may affect their coverage needs. For example, questions about vehicle usage, home equity, family size and other currently owned insurance types enable firms to generate precise recommendations for clients. In a recent poll we sent out to our panelists, we found that 83% of respondents believe that when it comes to coverage tools, accurate results are worth a lengthier questionnaire – so firms should be sure to ask thorough questions. Travelers asks more questions than any other firm in this report with its 13-step Guide to Better Coverage tool, which asks about users’ vehicles, home, assets and preference between price and coverage.

2. Suggest Specific Coverage Amounts – Since coverage tools are a starting point for users looking to buy particular insurance products, such as home or auto, firms should focus the tools by offering key information needed to start a quote. More importantly, firms should recommend coverage and deductible amounts, instead of suggesting general insurance products or add-ons. Over 85% of our panelists indicated that they would rather receive specific coverage recommendations over a general ranking of insurance needs, making it important for firms to provide calculated coverage amounts for bodily injury, property damage and collision. The best firms also suggest optional coverage add-ons, such as towing and rental. GEICO’s Coverage Coach arguably offers the best results page, with suggested coverage amounts for bodily injury liability, property damage liability, and uninsured motorist bodily injury/property damage. The firm also suggests deductible amounts for comprehensive and collision.

3. Offer Separate Coverage Tools for Home and Auto – While most firms in this report offer either auto or general coverage tools, firms should consider adding separate coverage tools for clients looking to purchase homeowners or renters insurance. Home insurance coverage involves various aspects of clients’ financial profiles, making it difficult for individuals to determine an estimate on their own. With coverage tools, firms can not only help clients looking to buy home or renters insurance but also present other important insurance types relevant to their profile. For example, based on how users answer questions, firms can recommend identity theft insurance. Liberty Mutual is the only firm that offers coverage tools for three insurance products, including auto, home and renters. Liberty Mutual’s home coverage tool not only recommends amounts for liability coverage and deductible but also suggests identity theft coverage if users indicate that they are concerned about identity theft. The firm’s renters coverage tool allows users to evaluate the value of their possession and offers an estimation of the cost to insure their belongings.

Liberty Mutual Home Coverage Tool

4. Explain the Purpose of Coverages – It is important for firms to not only recommend coverage amounts but also offer information that explains why users need a specific type of coverage. For example, the best firms offer coverage descriptions in the input section after users enter information that impacts the recommended amounts. In addition, firms should include information on the results page that explains each coverage type and its purpose, benefits and whether it is required by law. GEICO is a leader, with a strong input section that features a “Did You Know” box providing information about coverages that apply to users’ profiles based on how the previous question was answered. Liberty Mutual offers the most detailed coverage information on the results page, with the option to scroll over each recommended amount to view information that explains the coverage’s importance.

5. Make it Easy to Start a Quote – After completing a coverage tool, users are likely to start shopping for insurance, which makes it crucial for firms to offer easy access to quote tools and agent locators. Firms should offer links to the quote tool on the results page to allow clients to start a quote with the firm directly after determining their insurance needs. Firms should also offer access to agent locators and encourage clients to discuss the tool’s results with an agent. In addition, firms should consider allowing users to print the results page to save the information as a reference for when they begin their insurance search. For example, Allstate’s My Insurance Personally results page features prominent links to both the quote tool and the agent locator. The firm also offers a phone number for clients who wish to speak to a representative about their insurance needs.
For more information on our Monitor or Consulting services, contact Bob Burlin at 212-832-2002 x-115 or rburlin@corporateinsight.com. You can also use our online contact form.