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Magnum Insurance Agency

Magnum Insurance Agency is a dominant player in Illinois’ non-standard auto insurance market. Magnum had grown to over 35 stores and tens of millions in annual written premium.

ABSTRACT - Magnum Insurance Agency

ABSTRACT

Magnum Insurance had traditionally grown by opening new stores. Magnum Insurance was an early adopter of digital technology. A significant portion of their business is now generated through their online channels, both traditional and mobile.

Because such an overwhelming amount of their customers are cash-preferred, Magnum worked with Quotepro to deploy kiosks to accept cash payments, quote auto insurance and to sell auto insurance in greenfield locations.

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 premium annually focusing primarily on selling non-standard (i.e. – state minimum coverage) auto insurance within the Hispanic community.


THE CHALLENGE

From the beginning, Magnum has continually expanded their market presence. From a single storefront in Chicago they grew to over 40 locations in Chicagoland over the next 30+ years.

Magnum was one of the earliest adopters of eCommerce in the Illinois non-standard auto insurance market. Magnum chose Quotepro to power their website and mobile site to not simply 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 & mobile site without being directed elsewhere.

Quotepro was well aware of Magnum’s concerns. Magnum wanted to grow their business but the thought of opening new stores was daunting. What’s more, it is expensive to open new storefronts. There is an initial outlay of tens of thousands of dollars to simply rent a space and prepare it for business. Additionally, staff had to be hired, trained and licensed to sell insurance. It was becoming harder 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 CHALLENGE - Magnum Insurance Agency

THE SOLUTION - Magnum Insurance Agency

THE SOLUTION

Magnum chose to partner with Quotepro for a kiosk solution. Quotepro placed a cash-accepting kiosk in one of Magnum’s busiest storefronts.

Quotepro provided full cash management so that Magnum would not have to deal with cash. Full reconciliation reporting was provided in real-time. The idea was to let customers 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 acclimated to the self-service kiosk. Several benefits were immediately identified:

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 premium annually focusing primarily on selling non-standard (i.e. – state minimum coverage) auto insurance within the Hispanic community.

  • 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 & sales issues that required consultative solutions

Seeing the benefits provided by the Quotepro Kiosk inside of their office, Magnum was eager to expand their presence. Quotepro was able to secure 7 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.

The placement of kiosks inside of a greenfield location proved beneficial to both the grocer and Magnum for several reasons:

  • Both the grocer and Magnum offered complimentary products & services (not competitive)
  • The customer demographic for both the grocer and Magnum was virtually identical
  • The greenfield locations fell (geographically) between Magnum office locations
  • The extended hours of the grocery store and being open on Sundays essentially 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 & licensing, cash management and expensive office rentals. Magnum’s customers enjoyed having the option to use the kiosk to make payments in cash or with debit/credit cards instead of having to wait in long lines on paydays.


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