Marketers in the insurance industry face a unique set of challenges. They are selling a must-have product that not many people enjoy buying, and on top of that, it involves an incredibly high-touch customer journey.
Customers often start researching insurance online and then call to get questions answered, get quotes, and purchase policies. Insurance is a complex product with a lot at stake, so it's no surprise that over 70% of insurance customers who cannot talk to a human agent end up getting frustrated or angry when they face automated communications. This means that it's incredibly important that insurance marketers have the data they need to get the customer journey just right.
Call tracking and conversational analytics platforms like Invoca help insurance marketers like those at Plymouth Rock Assurance connect with their customers and increase conversion rates. Of course, there’s much more to the business than that! So here are 10 other stats about the insurance industry that marketers need to know.
Digitizing Insurance Processing Systems Can Reduce Costs up to 65%
According to Harvard Business Review, digitization, when done properly, not only reduces the cost of processing policies but it can also increase conversion rates. The bottom line: you have to adapt digitization to your business while providing a personalized human-to-human customer experience that compliments the digital journey.
70% of Businesses Do Not Have Cyber Insurance
A full 75% of businesses are underinsured and small businesses are increasingly vulnerable to cyber attacks, yet only 31% of them have cyber insurance. This can easily put them into a financially vulnerable position. Talk to your small business clients to make sure they understand the risks of going without cyber insurance.
Over 80% of Consumers are Willing to Share Data for a Personalized Experience
It’s not surprising that more people are seeking personalized customer experiences, especially when they are purchasing insurance. This could be as simple as sending them personalized messages over email or text, to a digital recommendation system that's based on their shared data.
Nearly 90% of Insurance Agents Say Referrals Rule
Word-of-mouth is a big deal in the insurance industry. Customers take recommendations from friends and family much more seriously than even the best digital marketing campaign. This is one of many reasons to maintain healthy relationships with your clients. Almost half of the agents in this survey mentioned that they would use their extra budget to invest in referral marketing.
70% of Customers Get Angry at Automated Customer Service
Customers want to have conversations with your business. According to Invoca research performed by The Harris Poll, 52% of customers felt frustrated and 18% expressed anger when they received an automated response instead of a person returning their call or answering their email. Don't play "hide the phone number" to force people into digital interactions and never fully automate communications. Make it easy for your customers to choose how they communicate with your company.
80% of People Think Life Insurance is More Expensive Than it Actually is
Consumers think getting life insurance will cost more money than it actually does, which is the main reason why many don’t have it. Be sure to explain to your customers that in the long run, having life insurance will save them money and spare their families from financial difficulties in their absence.
1 in 4 Customers Prefer to Complete Transactions on the Phone
According to Invoca’s Harris Poll research, 26% of consumers prefer to purchase insurance over the phone. Women are more likely to prefer getting a policy on the phone (36%) than men (26%).
13% of U.S. Drivers are Uninsured
Based on the Insurance Research Council (IRC), 1 in 8 drivers is uninsured nationwide. Florida has the highest number of uninsured drivers with 26.7 percent on the road without a policy. This number has been slowly growing each year.
62% of Customers are Uncomfortable Using AI When Purchasing Life Insurance
Despite the convenience, AI is still not the go-to channel for most insurance customers — they prefer to talk to a human insurance agent. If your life insurance purchase process is primarily AI-powered, you might want to add in human touchpoints since many customers find fully-automated experiences to be impersonal.
In addition, 78% of customers said that they feel most confident when purchasing life insurance from a local agent instead of a big retailer or an online agency.
63% of People Who Request Information Won’t Make a Purchase for 3 Months or More
It's common for customers to research your business before they make any large commitments. Create an easy to navigate website that provides plenty of information and answers common questions. If you want to step up your landing page game, check out these 7 Examples Of Awesome Landing Pages That Drive Calls.
Get the Call Tracking Study Guide for Marketers to see how insurance marketers can use call tracking software to optimize their marketing and create the ultimate customer experience.