Outsourced services provider Rubicon has launched a new white label text messaging service to provide renewal reminders and claims status updates.
The company claimed the SMS service can cut down on lost business by up to 12%.
Rubicon operations director Marguerite McGinlay said: "We have just completed a pilot on travel insurance for Hastings Direct and Link Underwriting Agency to assess the benefits of the SMS service, and were delighted at the results.
"We quite simply sent a confirmation of the quote to 'lost' customers when a sale did not convert, and this resulted in a 12% take up.”
The new service is available either as part of Rubicon's end-to-end white label solution or from a pick and mix flexible menu of optional services, depending on client needs.
Rubicon claimed that benefits of SMS include reduced lost calls, increased conversion rates, reduced claims leakage, improved market share, increased policy count, improved headcount ratio, increased customer retention rates, reduced new business costs, and a positive impact on efficiency rates.
Link Underwriting Agency director Mike Bottle said: "By embracing what is now a well-established method of communication, we have seen both increased sales activity and increased customer awareness of the product.
He said: "Despite insurers' best endeavours, travellers continue to travel light when it comes to insurance documentation; texting crucial contact details will provide a simple and convenient way of ensuring they are able to call us at the earliest possible opportunity when something goes wrong - nobody today travels without their mobile."
