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Part 1: The Insurance Direct to Consumer Sales Model: What is it & How Does it Work?

By May 3, 2022February 27th, 2024No Comments

The insurance industry is adapting to a very digital landscape. Modern insurance shoppers have high expectations to find exactly what they want, when they want it.

Insurance carriers today are reaching these expectations with new technology, delivering fast service aligned with clear and concise shopping experiences. Direct to consumer (D2C) sales have risen tremendously over the past two years, calling for P&C insurance carriers to adjust with flexible and intuitive technology.

For more on why the direct to consumer sales model is important to insurance, read

What is an Insurance Direct to Consumer Sales Model?

Direct to consumer sales happen when the customer comes directly to you to make a purchase. The customer expects to find exactly what they need from your website without purchasing through an agent or referral. 

If the shopper is comparing coverages, they may arrive on your website and expect to complete a quote. They may expect to bundle their insurance coverages with a simple, stream-lined approach without leaving your website or having to talk to a representative.

How Does a Direct to Consumer Sales Model Work?

Insurance companies today must be prepared for simpler customer experiences. This means predicting what customers will expect to find when arriving on your website and providing those answers in clear paths towards a purchase.

Many insurance carriers are turning towards Progressive Web Apps (PWAs) to make this experience cost efficient. PWAs allow carriers to deliver the same experience for both desktop and mobile shoppers, without the need for a downloaded mobile application. When developers make a change for the customer experience, the change is applied for both mobile and desktop accessibility. This saves carriers immense time and funds internally to build sustainable customer experiences, removing the need for app development in place of developing PWAs. 

Chat bots have become more popular in the insurance industry to help deliver fast communication alongside customers completing applications. When an application is complete, they are likely to expect fast and efficient communication after, keeping them updated on approval and binding.

What are the Benefits of a Direct to Consumer Sales Model?

The benefits of direct to consumer sales are tremendous for insurance carriers. Coverage is purchased directly from the insurance carrier, reducing the need for supportive agents and third-party business in the sales process in addition to much more.

1. Develop Products to Match Your Customers

With a fine tuned direct to consumer sales model, carriers are able to collect customer data themselves rather than relying through third-parties. Attracting customers directly to you to make a purchase gives your business greater power when creating customer profiles, better understanding which products are successful, and fueling your product development strategy to better serve your growing customer base.

2. Improve Customer Experience

When shoppers come directly to your site to make a purchase, your business has total control over the experience. Implementing chat bots, phone and email notifications, survey submissions, and many more creative initiatives can push the boundaries on how you build a relationship with your customer. This can improve retention rates and help your business keep in touch when policyholders go through life changes for more life-long customers.

3. Save Money on Technology Development

Creating an efficient direct to consumer experience not only saves customers valuable time, but saves your business time as well. Focusing development initiatives on comprehensive consumer-facing technology, such as Progressive Web Applications, means less time testing and updating various paths along the customer journey. Insurance technology providers, such as WaterStreet Company, are here to help your business make the transition.

WaterStreet Company & Progressive Web Apps

WaterStreet Company aims to deliver best-in-class solutions for P&C insurers. This year, we are excited to begin leveraging Progressive Web Apps for our clients in addition to our Business Intelligence Suite

We provide advanced P&C Insurance Software designed to grow with your business, allowing integration with next-generation solutions.

Reach out to WaterStreet Company today to request a free consultation and demo of our solutions.

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