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Should insurance companies invest in SEO?

SEO is important for insurance companies

To explain why SEO is so important to the success of insurance companies, I’d like to start by telling you my story…

When I first came to Berlin, everyone around told me to get liability insurance. I was new in the city and didn’t have any contacts in the insurance field, so how was I supposed to find the right insurance provider from the long list of insurance companies … right? Right! Well, not really … it didn’t take long to figure out what to do first…

I went on Google!

After a quick search, I compared the offers from the first five insurance companies I could see in my results. And voila! That’s it. It took me all of 10 minutes.

If you’re reading this, and I didn’t buy the insurance you offered, I apologize. But it’s likely because I couldn’t find your website… just like the rest of the people searching for “liability insurance Germany” or “Haftpflichtversicherung Deutschland”.

This insurance company shopping experience really got me thinking…

20 years ago, insurance companies worked locally. Everything they needed to reach their audience could be accomplished just by buying a spot in the classified section of a local newspaper. They could sit back and wait for clients to come to them. At most they needed to set up a small office and hire some sales agents to approach people door to door. The competition was local and kept at a comparatively low level.

However, this is no longer the case. Insurance companies face high competition for one reason: everyone went online, both the insurance companies and potential customers. Google has replaced classified ads and door to door salespeople and the barrier to entry is much lower.

Now every insurance agency has their own website and the capacity to work globally. From one side, it has become easier to reach clients without having to ring on their doorbells one by one, but from the other side, not everyone knows what to do and how to do it to connect with customers on Google and search engines.

Most insurance companies simply hire someone to build a website for them, but there is almost no consideration for user-experience or targeting a specific segment of potential customers.

Once the website is set up, if it is not in the first place of Google search pages, it’s 75% less likely to win the customer.

Here are two ways to fix the problem of visibility to help get your insurance company access the traffic it needs to connect with your audience:

  1. Paid Search and Online Advertisements
  2. Organic Search through SEO and Inbound Marketing

Paid Search and Online Advertisements:

This is the quickest way to see results and is popular among many companies. By researching the right keywords to get people’s attention as they research insurance, your company can appear in the top position on Google using paid advertisement. This is of course an important component of your digital marketing strategy, but will always cost money to execute and therefore may not be sustainable all by itself in the long term.

Here’s an example: your company is selling liability insurance (one of the most popular types of insurance in Germany) and as a part of your digital marketing strategy you have decided to create a Google Ads campaign and bid your ads under the keyword “Haftpflichtversicherung Deutschland”.

This is how the process funnel will look like:

  1. Assuming 60.000 people search for this keyword every single month.
  2. The chance, that someone will click on your ad (it’s called CTR – Click Through Rate) is around 2.9% – This makes up to 1.740 clicks.
  3. For every click that you get, you will pay up to 13€ – 22620€ cost that you need to pay.
  4. Generally, the possibility to convert this click into your insurance clients (conversion rate) is around 2.5%, which means after reaching out to 1740 people, 43 of them sign an insurance policy with you.
  5. So, you are spending 540 € to get 1 signed contract.

Sounds pretty good, right?! Spending 540€ to get 1 customer is a pretty decent cost of acquisition considering the Lifetime Value of your customer.

However, with an added investment of Search Engine Optimization – fixing your website to be easily found and served on search engines – can get that cost even lower. Even down all the way down to FREE. Good SEO can also be helpful for the performance of your Paid Search, as it improves your domain authority and positions your website as preferred for search engines.

Organic Search through SEO and Inbound Marketing It’s time to invest in SEO. Unless you have the #1 spot, it should be obvious now that other insurance companies, including your competitors, have already started. That means that their company is appearing on the first page of Google, capturing 75% of the attention of people looking to buy insurance. This is creating inherent value, trust, and relevancy to the user through their company’s website.

For SEO, using the same example of “Haftpflichtversicherung Deutschland”, here’s what we can see:

  1. Assuming 60.000 people search for this keyword every single month.
  2. With good SEO content and a well-structured website, you win the first position on Google. The first position on Google will give you around 33% of CTR – This can mean up to 19.800 clicks.
  3. Since the traffic comes organically, you pay nothing for it and receive leads that have a user intent to purchase.
  4. With the same conversion rate of 2.5%, you have the potential to sign 495 clients in a month!

Of course, getting first position on Google’s search result pages is not a piece of cake. It takes a lot of time and effort. But the first page is achievable!

All you have to do is keep your website clean, up-to-date, provide your audience with high quality SEO content and ensure the technical structure is reaching Google’s standards. Even if you manage to get to the 7th position, you will see a significant increase in CTR. It doesn’t need to cost a fortune either, the investment needed to keep your SEO on track can be quite reasonable – check out our pricing page for more info on that..

Search Engine Optimization (SEO) is something everyone has heard of, but few have properly implemented.

Whenever I talk to people I always hear: “Yeah, we took care of SEO while we were building the website”. Unfortunately, it doesn’t work like that. SEO is a constant process of making your website relevant in the eyes of search engines like Google and thus, visible to your potential clients. Since SEO is an on-going process of website optimization your website can always be better and can never really be finished.

In conclusion, here are the 6 main reasons why insurance agencies should seriously consider stepping up their SEO game:

  1. SEO helps you achieve better online visibility.
  2. SEO helps you to get better leads and therefore sell more. See calculation above.
  3. SEO is efficient. Getting your website optimized is more cost effective than advertising. And if you want to advertise as well, it increases your return. Keep costs down and use your savings to give bonuses to your best insurance agents for Christmas.
  4. SEO builds trust with your customers. First of all, it makes your brand more familiar to them through building brand awareness. People will see your brand name and website on the first page of Google – meaning it can’t be a scam, right? Second of all, people love finding things for themselves. Anyone can appear on the first page with ads (especially those who have unlimited budgets for marketing), but what about those who got to the first page without spending a huge amount of money? They must really know what they’re doing.

If Google trusts you and gives your website the first rank, why shouldn’t the people trust in your product and service?

SEO makes your website more engaging. Not only can people find your website easily, but they are also more likely to stay there for more time. If you have a high ranking on Google, it must mean that your website is relevant to the search query the user has submitted.. Plus, you have some high-quality content which users will interact with which leads to a wonderful user experience.

All in all, it should be clear by now why an SEO investment is pertinent for the insurance industry. If you’re still skeptical, have any questions, or want to talk about how this applies to your business, please reach out to me (stepan@ogno.io)! I will be happy to give you ten more good reasons and show you how and what to optimize on your website and be in the first page of insurance agency searches on Google.

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