The move towards a full self-service purchasing model for MCE Insurance is showing promise, as the motorcycle insurance provider has reported a significant increase in ancillary sales and average premiums since making the switch.
MCE Insurance launched its self-service purchasing model in November 2020, and in the first three months of the new model, sales of add-on products increased by 400% and the average premium jumped by 24%.
“When we embarked on this project, we knew we wanted it to be about giving control back to the customer and making the insurance purchase process as simple and transparent as possible,” said MCE Insurance commercial director Simon French.
“The results of this first foray into self-service have been incredible. By presenting customers with an informed choice of supplementary cover for the core product, we have found that they self-select much more frequently resulting in more appropriate cover for their needs and higher average premiums for us.”
French added that while the cynical approach to selling insurance add-ons has been to pre-select them on behalf of customers, or to hide their inclusion, it never sat well with MCE Insurance to pull such things over their customers.
“It proves what many of us in the industry have long suspected – there is real value in these products and if they are offered to customers in a way that allows them to make an informed choice, more often than not, they buy them,” the director commented.
MCE Insurance’s switch to full self-service is the first phase in its digital transformation strategy. The next phase, which starts in the second quarter of this year, will focus on enabling existing customers to self-serve their renewals. It will be followed by an implementation of a new system for mid-term adjustments and cancellations in the third quarter of 2021.
