Online product offerings from brokers are becoming increasingly common, but a great deal of consideration should be placed into the market being entered and the value a new product can add before beginning, according to one professional.
Luke Philips, Gardian Insurance Brokers managing director, said that, above all, time is key to ensuring the success of a new online product launch.
“The process is not an easy or quick one, effective planning and launching a product is a long-term commitment,” Philips told Insurance Business. “And just because you have built it – doesn’t mean they will come.
“You need to consider digital marketing, social media marketing and of course SEO just to get your brand out there. Try hard not to be disillusioned. In essence, when launching an online product you are essentially a start-up business and all the trials and tribulations that apply to online start-ups are relevant.”
Philips recently launched MINEGard, an online product backed by Lloyd’s that offers public liability cover to small-medium sized mining contractors. Based on his experience, he believes brokers should consider a range of questions before launching their own online offerings.
For example, they should look at whether the new product is truly unique, the value it adds to the market and who the audience for the product is, as well as what the future of the product looks like. Then it’s a case of designing a product now that is scalable for the future.
“Creating and launching a new product, especially an online one, requires an exceptional amount of mapping, process and user testing to get it right,” Philips said. “And just when you think you have it right, it will probably require a complete rethink and you may have to go back to the drawing board and start again.
“Understanding the solution you are providing through the new product is a key element here, and then designing all the functionality around that solution is also critical.”
Launching a new online product could prove to be extremely beneficial for a broking business, as Philips revealed that 87.5% of web traffic received in the last quarter was via new users.
