Transparent sales process sees ancillary sales at MCE Insurance shoot up by 400%
MCE Insurance has announced that the first stage of its pivot towards a full self-service purchase model has resulted in a huge increase in ancillary sales and a significant increase in average premiums.
Since 2020, MCE has invested approximately £3m in creating a full self-service model for customers, a model that went live for new business in November 2020. In the first three months of self-service, the sale of addon products increased by 400% while the average premium increased by 24%.
Simon French, Commercial Director at MCE Insurance, said: “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.
“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.
“The cynical approach to selling addons has always been to pre-select them on behalf of customers or to try to hide their inclusion in the process. That has never sat well with us and I’m delighted to see that by using a transparent approach to selling supplementary cover, customers can and do see the value.”
Phase two of the company’s digital transformation goes live in the second quarter of this year with existing customers able to self-serve their renewals. This will be followed by implementation of the new system for mid-term adjustments and cancellations in the third quarter of this year.
“While we always hoped that offering supplementary products in a more transparent way would result in more self-selection by customers, we have been pleasantly surprised by how many of our customers choose them,” added French.
“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.”