how to increase sales in insurance industry with labels

Increase sales with labels in Insurance industry (Case study)

I guess we are all familiar with the labels in e-commerce such as „Free delivery“ or „on sale“. It is widely used because it just Works. There is no doubt on that.

As Insurance industry is moving to internet with the light-speed, it is not so different anymore from your regular clothing shop. You can choose, compare and customize your policy like your new winter jacket.

So, as we had 3 packages to choose for casco insurance, we came across the problem that too many customers bought the cheapest packages.

Yes, if we could affect customers to buy bigger package, we also increase average policy value. There is another probleem with  that – customers might buy policy with less coverages than needed. Rather often customers think that „This will not happen with me“ but when it does, it will decrease Customer satisfaction with our service.

customers might buy policy with less coverages than needed

Insurance industry learns from clothing shops

Currently the share of diferent packages was:





Most expensive



More than half of the customers bought cheapest packages. From user interviews we have gathered feedback that customers buy casco often only because the leasing company demands it. They don’t think about it as something that will protect them but needed service that takes too much money.

Unless focused on that, customers don’t see that its better to pay little bit more for something that will actually help in need than paying less that will not meet Customer needs.

So I decided to try something that is widely used in casual e-commerce shops. I added „Most widest coverage“ to the most expensive packages.

A/B testing results were as expected but with a twist

I expected to see more customers from middle package to choose most expensive one because price difference was insufficient.

After four weeks of A/B testing were on one hand as expected and on the ohter hand surprising. Instead of affecting share between middle and most expensive packages we managed to change the whole purchases share.

This was the end results:


Control version

With label version







Most expensive




Alltough conversion rate stayed same, we managed to increase average order value about 27% which is massive.

It's important to validate your testing results

We started similar test for Houshold insurance and with the first results we did not saw same results. At first I was worried that my casco A/B test could also be false positive.

As I digged into both tests I discovered that in household purchase process middle and most expensive package price difference was a lot bigger, also the risks mentioned in table was only one extra for most expensive package.

With the product owner we modified last package table so we could present more risks. As we ran this test again, we saw the results we expected. It’s also important to critically look into your products so it would make sense in Customer perspective.

In conclusion I can say that it’s truly hard to make customers think about realistic risks without any consultation from insurance agent.But small subliminal hints can make big difference and I encourages you to lend those marketing tricks from clothing shops even if your industry is diferent. You can check some more ideas for your business from 13 Sales promotion tactics.

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