The 'Name-Your-Price' Tool

This is the first article in a series looking at some innovative tools insurers are using.

This is the first article in a series looking at some innovative tools insurers are using.

The US-based insurer, Progressive.com, has developed a clever new system that involves the cus¬tomer in the pricing and configuration process. Their online tool, “Name Your Price,” allows custom¬ers to suggest how much they want to pay for an insurance policy. The key element is a slider bar that shoppers move back and forth which changes the price and coverage options in real time, rather than having to wait for a recalculation of rates. The tool provides a more interactive experience than a typical online quoting system. No other car insurance company offers a similar quoting application.

Progressive CIO Raymond Voelker noted in an article that, "people can get tired of giving us data and get out of the quote before we give them a price," says. "It's not about Web server errors. It's about them getting bored or frustrated and leaving."Progressive wanted to lower the "finish-to-start ratio," and increase the number of shoppers completing the quotation process. Standard practice requires buyers to enter a lot of information and then sort through a variety of potentially confusing options - this tool turns the process around.

So far, the tool has apparently yielded a 5% increase in the number of customers who choose to buy a policy once a quote is initiated online.

This is an innovative way to approach the selling of insurance. It engages the customer in the process, and makes it very clear what the price of insurance it. This tool is a way to show the consumer that insurance has a value, and depending on how much you are willing to spend, you receive different policies as a result. Additionally, it is fast (giving instant results) and leaves out the boring stuff.

@TIA Customers: Get in touch with us today if you are interested in such a tool, and together we can look into making it happen. Contact Steen Vingaard Larsen, Business Advisory Director: svl@tia.dk

The TIA Solution has the architectural framework to support this type of feature by combining TIA backend/web services, with the customer portal.

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