QuotePro Website, Mobile Site and Kiosk Solutions Help Magnum Insurance Agency Grow

A Large, Non-Standard Insurance Agency Adopts New Technology to Expand, Instead of Opening New Stores

Abstract:

Magnum Insurance, like many insurance companies, had traditionally grown by opening new stores. With help from QuotePro, a significant portion of their business is now generated through their website, mobile site and QuotePro Kiosks.

About Magnum Insurance

Magnum Insurance Agency has been a major player in the non-standard auto insurance market in Illinois since the company’s inception in 1981. The company writes tens of millions of dollars in premiums annually, focusing primarily on selling non-standard, state minimum coverage auto insurance to the Hispanic community.

From the beginning, Magnum has continually expanded their market presence. From a single storefront in Chicago they have grown to over 40 locations in Chicagoland.

The Opportunity

Magnum wanted to grow their business but the thought of opening new stores was daunting and expensive. There is an initial outlay of tens of thousands of dollars to rent a space and prepare it for business.Then they had to hire staff and train and license them to sell insurance. It was difficult to justify the capital outlay to open a new store, but it seemed to be the only option to expand with a physical presence to cater to their cash-preferred customers. Chris Roman, Magnum’s Vice President, said, “Cash is expensive.” Costs for cash handling alone often precluded a store’s opening.

The Solution

Magnum was one of the earliest adopters of online insurance in the Illinois non-standard auto insurance market. Magnum chose Quotepro to power their website and mobile site, not simply to quote auto insurance, but to sell it as well. Additionally, Quotepro created a payment portal so that customers could pay their monthly insurance bill online directly from Magnum’s website and mobile site without being directed elsewhere.

Rather than opening a new store in a greenfield location, Magnum Insurance chose to place a cash-accepting QuotePro Kiosk in one of Magnum’s busiest storefronts.  The results were impressive.

Quotepro provided full cash management so that Magnum would not have to deal with cash. Full reconciliation reporting was provided in real-time. Customers can look up and make payments on the kiosk so that the sales team could be free to sell rather than take payments. It was an immediate success.

Magnum received over 30 payments per day, almost all of them in cash. Customers easily adapted to the self-service kiosk and benefits were immediatly obvious.

Benefits of a QuotePro Kiosk for Insurance

• Customers who only came to make cash payments were able to get in and out of the store quickly with proof of insurance
• Customers’ payments were posted in real-time to finance companies, carriers and Magnum’s agency management system
• Customer service reps were relieved of taking everyday payments and could instead concentrate on billing and sales issues that required consultative solutions

Expansion to Seven Locations

Seeing the benefits provided by the Quotepro Kiosk inside of their office, Magnum was eager to expand their presence. Quotepro was able to secure seven greenfield locations that complimented Magnum Insurance Agency’s presence within the community.

The kiosks replaced ATMs inside of a local chain of Hispanic grocery stores. The kiosks served as an ATM and allowed Magnum customers to look up & make auto insurance payments, get auto insurance quotes and buy auto insurance on the spot.

Benefits of a QuotePro Kiosk for Retailers

The placement of kiosks inside of the grocery stores is beneficial to both the grocer and Magnum Insurance for many reasons:

• Both the grocer and Magnum offer complimentary products and services (not competitive)
• The customer demographic for both the grocer and Magnum was virtually identical
• The grocer’s locations filled in the gaps between Magnum’s office locations
• The extended hours of the grocery store and being open on Sundays extended Magnum’s operating hours

By partnering with Quotepro, Magnum Insurance was able to efficiently expand their market presence without the associated traditional costs of staffing, employee training and licensing, cash management and expensive office rentals. Magnum Insurance customers enjoyed having the option to use the kiosk to make payments in cash or with debit and credit cards instead of having to wait in long lines on paydays.

Learn how a QuotePro Kiosk can help your agency grow!  Contact us today for a demo.