Unlocking the Motivation that Drives Insurance Purchases

By LeadsConAdminJune 30, 2016

By Kieran Kern.

Finding out why and how people shop for insurance is one of the great mysteries of lead generation. You don’t need a cultural anthropologist or a world-renowned sleuth to decode the reasons behind insurance consumer behavior, but you do need Senior LexisNexis Product Manager Emily Fess.

She cites one of the greatest factors driving insurance shopping as rates. When carriers increase rates, shopping for new carriers increases. Another contributing factor is the ease of the quote process. “We’re seeing an increase in traffic in quotes on mobile devices due to the simplicity of the quote process,” explains Fess.

On the whole, insurance doesn’t just have one set of circumstances that precipitates buying. Auto insurance is compulsory. If consumers have a car, they must have it insured. Thus shopping for auto insurance is both compulsory and cyclical.

People purchasing home typically buy home insurance during the initial purchase or shortly thereafter. Like life insurance, which follows a marriage or birth of a child, home buying and home insurance buying occurs following or during a life-altering event.

Over the last five years, Baby Boomers have been shopping less, while millennials shop at a greater rate, specifically through direct quotes online or via mobile device. However they make up a smaller market share as they are delaying life events – such as getting married, having a family and home buying – that would precipitate purchasing insurance. Their reliance on services such as ride-sharing has resulted in a share of them not driving and therefore not needing auto insurance.

Fess encourages the use of predictive modeling to discern which leads are loyal, as well as which are profitable matches aligned with the risk profile of the company. “There are a lot of opportunities with digital marketing for third-party data to enable carriers to target people who have life events that lead to purchase,” she explains

The strategies to employ include understanding how often a carrier’s customers shop and how loyal those customers will be to their carrier. Another key item to understand is how rate increases affect customer shopping. If a carrier is one of the “first movers” to raise rates, then they want to lower their marketing budget in the event of a lower number of conversions.

It’s less about maximizing lead volume and response rate, and more about matching the risk profile and loyalty to the carrier’s needs. Aggregators need to provide quality over quantity.

With 50 to 70 percent of shopping visits on mobile devices, Fess stresses that promoting a great mobile experience from quote to conversion is key.

In her session “Cracking the Code: Understanding the Mysterious Insurance Shopper,” Fess will demonstrate the power of having an immense contributory database to target from and the leverage that base gives over knowing what one carrier is doing.

Click here to register for LeadsCon New York 2016.


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