The Four Step Policyholder Decision Journey in Small Commercial Insurance

When a potential policyholder needs small commercial insurance, he or she follows a basic process. While each person is unique, buying decisions remain relatively similar. Understanding this process can assist you in your marketing, communication, and core systems, to better support how your applicants shop.

Below you will read about the four-step policyholder decision journey in the small commercial insurance industry.

Shopping Triggers

The first thing that happens to small business owners is they are triggered to begin looking for a new policy.

These triggers can vary, but some include 1) new business, 2) completing a planned policy review, 3) reviewing their policy during their renewal period or, 4) reviewing their options when their current plan’s price increases.

You never know when a potential policyholder is going to enter this phase, so you want to continually be present and prepared to provide a high-quality service to those who come across your company and inquire about your services.

After they are triggered to begin searching for a new policy, they move to the next phase in their decision-making journey.

Gather Information

Next, small business owners will shop around to determine what insurance options are available.

Statistics show that a small business owner will consider between three and four brands during this period.

What information are you providing potential policyholders on your website to convince them to move to the next phase in their journey with your company?

This is a critical step and the perfect time for you to differentiate yourself from your competition.

Get a Quote

Once small business owners gather information from three to four companies, they will narrow down their options and get quotes from two or three of them.

That means one company on average is automatically eliminated from the running. You want to make sure that’s not you.

Once quotes are requested, it can take an average of ten-weeks until they receive their quote.

The quote is a major determining factor for many small business owners, but to deliver a quote, your application process should be seamless. Don’t allow complicated, lengthy, and non-user-friendly applications to turn away potential policyholders from your company.

Related Article: 4 Reasons Your Online Application Performance Is Struggling

Decision Time

Now that the small business owner has gotten a quote, it’s time for them to decide between staying with their current carrier or switching to a new carrier.

The period between obtaining a quote and making their decision runs an average of ten weeks, in addition to time already spent. 

Renewal rates are high, 94%, will repurchase insurance from their incumbent carrier.

It’s your goal to wow that 6% and get them to switch to your company.

Prepare for the Journey

Small businesses know the importance of choosing a small commercial insurance provider. While many will remain in the loyalty loop and stick with their current provider, your opportunity to convert business owners to your company can be lucrative.

Keep the decision journey of small business owners in mind as you work to secure new policyholders with your company.

At Fenris Digital, we have the technology to make this process more user-friendly and profitable. If you want to help your potential policyholders save time during the application process and get an accurate initial quote so you can increase your conversion rates, we would love to support you.

Click here to schedule a free product demo.

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