Response Insurance

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Response Insurance

• Direct Mail and On-Line Sales

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Who Is Response Insurance?

• Direct response specialist
• Primarily auto insurance
• Meriden, Connecticut
• Direct Line (UK) heritage
• Red Phone
• Timeline

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More About Response Insurance

• Scale
• Number of policyholders
• Business model
• Pre-selected preferred risks
• Upscale education and occupation
• Low rates for preferred risks
• 90 of those we quote save money

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On-Line Sweet Spot

• Good rates for well educated, upscale customers
• Where can we find these people?
• How about on-line?
• Yes!
• How can we close more sales ?

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Shopping Starts On-Line

• Over half of the customers recently purchasing
  through any channel first got an on-line quote.
• Source ComScore Online Auto Insurance Report
  April 2007

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How Well Does That Work?

• Lots of on-line inquiry opportunities
• SEO
• Aggregators
• Low close rate
• Other metrics, LTV too soon to tell.

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On-Line Hurdles

• Nobody knows our name
• How do we get trial?
• Product Is promoted in 1012 states
• How can we market efficiently?
• On-Line inquiries arent pre-qualified
• How do we focus on our preferred risks?

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On-Line and DRTV Similarities

• Potential for lower cost per inquiry
• Positive brand building potential
• Track record of adverse selection
• On-Line shopper more upscale than DRTV shopper
• Significant percentage of distressed business
  from each medium

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Success Strategy

• Build a Better Mouse Trap
• Sales process
• Offer
• Round up the Right Mice
• Targeted direct mail

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Building a Better Mouse Trap

• Sales Process
• Start on-line
• Close on phone
• Offer
• 5 to 15 discount for on-line shoppers

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Targeted Direct Mail to Round up the Mice

• Stage 1
• Who are the best prospects?
• Stage 2
• Who are the on-line buyers?

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Targeted Direct Mail to Round up the Mice

• Stage 1
• Who are the best prospects?
• LTV
• Response
• Conversion

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Targeted Direct Mail to Round up the Mice

• Stage 2
• Who are the on-line buyers?
• On-line buyer model
• Discriminates between on-line and call center
  shoppers
• Match creative and offer to prospect
• Use internet discount offer only to most likely
  on line buyers

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On-Line Buyer Package

• Segmentation determines creative package

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On-Line Buyers

• Younger
• Younger neighborhoods
• Well educated
• Student loans
• Drives sportier cars
• New credit accounts
• Uses available credit

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Results

• More total response
• 2/3 respond on-line
• More total sales
• Long term
• Expect better persistency and LTV

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Whats Next?

• Brand building
• More robust product
• State expansion

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Contact Information

• John Hoey
• TPG Direct
• 7 N. Columbus Blvd
• Philadelphia, PA 19106
• 215-592-8381
• jhoey_at_tpgphl.com

• Devin OConnell
• Response Insurance
• 500 S. Broad St.
• Meriden, CT 06450
• [phone]
• doconnell_at_response.com