With the impending FCA investigation into add-on insurance products we take a look at ways in which dealers can anticipate the potential changes that may impact on their current insurance selling models and use this time as an opportunity to look at ways they can maintain and strengthen their insurance business.
Wider Product Portfolios
We know that the FCA will be looking at the profits of add-on products and the way they are sold so one of the first things for dealers to consider is widening their range of insurance products and accurately matching products to the customer’s needs. Not only does this offer great opportunities for dealers to increase sales, they could also avoid potential issues around commission related incentives by offering one particular product over another. This gives the customer choice and it will offer protection to suit their needs.
Suppliers should already be working with their dealer partners redefining a new approach to the promotion of insurance products with the FCA and TCF in mind. Regardless of the outcomes of the FCA market study, it is essential that suppliers and dealers work together to understand the customer base and it’s crucial that the insurance products are aligned with the stock profile.
Promoting Insurance Products Online
With almost all of the used-car buying process carried out online with pre-purchase searches, one of the key challenges facing dealers will be how they can promote GAP Insurance, Lease Guard Protection and other insurance add-on products ahead of the point-of-sale.
Used car buyers now make very few visits to dealerships during their search for their next car but when they do attend to make the purchase, dealers must be mindful of the risks of overwhelming customers with information and add-on choice. Therefore, dealers should be considering ways to inform and educate the customer prior to them visiting the showroom through innovative, online methods. Online tools will assist dealerships with the management of their insurance offering and enhance the customer journey during the car buying process. The right integration of these products online will mean they will become core product rather than just an add-on.
For more information or advice on developing your portfolio of automotive insurance add-ons’ or stand alone products contact us