Marketers in the insurance industry face a unique set of challenges. You’re selling a “must-have” product to consumers who will want to have several human-to-human conversations in order to complete a sale. Once it comes time for a customer to file a claim or change coverage, they’ll need to get guided through the process by a person yet again. Insurance is a complex product, and consumers need people to be part of the process. In fact, according to an Invoca study performed by Harris Poll, over 70% of insurance customers who cannot talk to a human agent end up frustrated or angry when they face automated communications. 

Call tracking and analytics platforms help insurance marketers like those at Plymouth Rock Assurance do a better job connecting with their customers and increase conversion rates, but as you know, there’s much more to the business than that! Here are 10 other stats about the insurance industry that marketers need to know: 

Digitizing insurance processing systems can reduce cost up to 65 percent

According to an article published by Harvard Business Review shows that digitization, when done properly, can not only reduce the cost of processing but also can increase conversion rates. Here’s how you can adapt digitization to your business while still providing human interaction to your customers: Your Customer Still Want To Talk To A Human Being.

Nearly 70 percent of businesses do not own cyber insurance

A full 75 percent of businesses are underinsured and small businesses are more subject to cyber incidents, yet only 31 percent of them have cyber insurance. It can easily put them into a vulnerable position. Talk to your small business clients to help them avoid expensive cyber disaster cleanup situations in the future.

Over 80 percent of customers will share their 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 a message you send them that make them feel more connected to a personalized recommendation system based on their shared data.

Nearly 90 percent of insurance agents identified referrals as one of their most successful marketing tactics

It turns out, word-of-mouth is a big deal in the insurance industry as well. People recommend a product or a service they are using to their family and friends. It is one of the many reasons to maintain healthy relationships with your previous clients. Almost half of the agents mentioned that they would extra budget to invest in referral marketing. 

70 percent of customers are frustrated or angry when they face automated communication

Customers want to have conversations with your business. According to Invoca research performed by The Harris Poll, 52 percent of customers felt frustrated and 18 percent expressed anger when they received an automated response as a return instead of a real person returning. Our suggestion is to offer more ways your customers can talk directly to a person.  

80 percent 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 they don’t have it. In fact, in the long run, having life insurance will save a ton of money. 

1 in 4 customers prefers to complete transactions via phone calls

According to Invoca’s Harris Poll research, 26 percent of consumers prefer to purchase insurance over the phone. In fact, women had a higher preference of 36 percent compared to men at 26 percent. Pay attention to your customer’s tone, behavior, and desires. 

13 percent of the U.S. drivers are uninsured

Based on the Insurance Research Council (IRC), 1 in 8 drivers was uninsured nationwide. Florida had the highest number of uninsured drivers of 26.7 percent. The number has been slowly growing each year.

62 percent of customers are uncomfortable with using AI when purchasing life insurance

Despite the convenience and cost reduction elements, AI is still not most customer’s go-to choice for insurance—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 touchpoint, since your customers might find it impersonal.

In addition, 78 percent of customers said that they feel most confident when purchasing it from a local agent, instead of a big retailer or an online agency. 

63 percent of people who are requesting information won’t purchase for at another 3 months or more

It is common for customers to research your business the business first before they make any larger commitments. Create a website that provides plenty of information. 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. 

Lesley Choi

Posted by Lesley Choi

Lesley is a content marketing intern at Invoca. She is currently a marketing student at the University of San Francisco with a minor in computer science.

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