"How much is this going to cost?" If a business insurance customer isn't asking that first, they're thinking it.
As premiums rise, only 55% of U.S. small commercial customers say they will "definitely" renew their current policies,
Unfortunately, insurance answers depend on complex factors like type of industry, location, company size, claims history and many others. Insurance agents rightfully want their clients to have in-depth guidance, but the reality is that some business owners may bail if they have to provide a lot of information upfront. That may mean putting off an important decision – and putting their company at risk.
Across industries,
By "quick quote," I'm referring to an estimated price a customer can receive in seconds digitally – whether they shop online or with a licensed agent – by answering 10 simple questions or less.
First, a bit of history. My insurtech leadership experience has included being part of a tech-forward digital insurance carrier that helped pioneer quick quotes – and now a digital brokerage reinventing them for today's shoppers. After quick quotes first burst on the scene, I watched them gradually fade in popularity.
Many insurance carriers that rolled out quick quotes found that customers considered them a bait-and-switch because the final quote was higher after the full round of underwriting took place. Independent agents who matched customers with carriers often felt they were caught in the middle between a new carrier capability and their customers' expectations.
The bottom line? Quick quotes came to be seen as more of an opportunity cost than an efficiency gain.
The tech that lets you "try it on"
But fast forward a decade or two, and I've found that insurance customers are ready for quick quotes again. From instant home mortgage estimates to instant shipping costs, today's shoppers aren't looking for precision but want to know right away if a product is generally affordable. At the same time, insurance data is more sophisticated than ever.
Brokerage agencies are especially well-positioned to deliver because they don't sell their own insurance and can draw on data from a wide range of carriers. And one winning approach has emerged: quick quoting a single lead product instead of trying to predict the total cost of coverage.
For instance, today I work with an engineering team who have been able to generate a realistic premium range for general liability – a product every small business owner needs – by asking only five basic questions and no contact information.
When a business owner shops online for insurance, they're first offered the option of seeing what general liability might cost. From there, a speedy machine learning algorithm trained on a body of past quote data generates two quotes – one at the lower end and one at the higher. The range shown to customers reflects real carrier pricing across industry, geography and exposure to risk.
And if the system isn't confident of an estimate, it will decline to guess. So not every shopper will get a quick quote, but the many who do will see a credible cost range.
This range can prompt an informative conversation with an agent who shares why some quotes may be higher but reflect higher coverage levels that may be a better value. This is important because although a majority of business owners have insurance, most of these owners are worried about potential losses.
Like a clothing shopper who tries on an outfit when they first walk into a store, the business owner has an immediate sense of whether a policy will fit their budget and needs before they explore all the details and options.
Customer experience is key
Of course, smarter estimates are still just estimates. That's why insurtechs that introduce quick quotes are most likely to succeed if they've already established a relationship with their customers as a trusted expert and guide.
The quick quote should be part of the larger brand experience. I recommend using clear and friendly messaging that makes it clear this is only an estimate – and they'll get a customized recommendation once they share more details.
Of course, it's important to strive for quickness in the main shopping experience too.
The information a customer has already submitted should be pre-filled. And because a digital broker can interface with multiple carrier portals in seconds, they can limit the number of redundant questions that business owners have to answer. Most carriers need to know the same things, so a predictive AI engine can ask for this information first and instantly pull in additional questions a specific carrier may have, eliminating any carrier who doesn't have appetite.
So … Do quick quotes actually pay off? Yes. We've found that customers who like what they've tried are more motivated to speak directly to an agent or continue their shopping online afterwards. And we've seen consistently higher completion rates for customers who start off with a quick quote.
The quick quote hooks their interest. A great customer experience does the rest.
