Insurance quotes and assistance

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Auto Insurance

Commercial Auto Insurance and Personal Auto Insurance
Keeping Auto Insurance Premiums Low
Take Advantage of Insurer Websites
Am I The Only One That Thinks Auto Insurance Rates Are Freaking Ridiculous?!
Flustered About Auto Insurance?
Auto Claim DENIED…WTH!!!
How much auto insurance do I need?
Do all states have a mandatory auto insurance minimum?
How do I get the best policy value for my money?

Health Insurance

Health Insurance Decisions
Do you need health insurance?
Indemnity Plans
Health Insurance Dissected…Lighten Up!
5 Things Every Health Insurance Policy Holder Needs to Do Now
Tips for Working with Customer Service
What are the most popular types of health insurance plans available?
What exactly does my health insurance premium pay for?
What is a main hospital plans?

Home Insurance

Renters Insurance Stripped
Whose Home Insurance is Responsible?
Umbrella Insurance
Expecting Home Insurance Premium Increases
5 Steps Home Insurance Policy Holders Must Take Now
What Home Insurance doesn’t Cover
Do I have to have home insurance?
How do I get the homeowners policy that gives me the best value for my money?
What if someone is injured on my land?

Life Insurance

Don’t Screw Up Your Life Insurance!
The Case for Term Life
Lying to Insurers
It’s Time To Stop Bashing Life Insurance Coverage! Have You Got A Better Solution?
Should You Sell Your Soul To The Insurance Company In The Pale Moonlight?
Do You Need a Trust?
How much life insurance do I need?
How do I get a life insurance policy that offers the best value for my money?
Should my spouse and I have separate life insurance coverage?

Marketing in the insurance industry

Over the last ten years, advertizing spending rose significantly but the spend slowly shifted from the traditional print and broadcast media, to niche marketing and the internet. This general growth was fueled by competition for market share and, because the insurance industry was highly profitable, more money could be diverted to the marketing budget. Today, the level of spending cannot be maintained. In fact, it has slowed quite significantly over the last eighteen months. There are two reasons for this. The market for insurance has peaked and is starting to contract in all segments as a looming recession forces policy holders to trim their budgets. Secondly, the price competition between the major insurers has reduced the level of profitability at a time of slowing revenue growth.

Despite this, the four leading insurers – Allstate, GEICO, Progressive and State Farm – have maintained brand awareness and their marketing activities pressure their smaller rivals to maintain their marketing momentum to avoid losing market share. However, there is a potential problem. The growth of the internet has turned the standard policies of auto, health and homeowners into commodities. It has become easy for policy holders to obtain comparative quotes through sites like this. Policies can be written over the internet without the parties ever having to meet (whether directly or through an agent). So the advertising has to shift to differentiate the insurers and their policies. Price on its own is not a key feature given the ease with which prices can be compared. That means a focus on other elements such as claims handling and customer service. The internet is not passive. There are now customer sites which carry stories of poor service. The insurance industry is therefore having to spend less on marketing and more on actually delivering better service.

This has serious implications for media that have traditionally relied on advertising revenue from the advertising industry. Newspapers in particular have seen a dramatic drop in their insurance ad revenue. The new campaigns focus on market segments where growth is predicted. More speciality products are being offered and Spanish language advertising to the Latino market has been growing. We can therefore expect to see a further reduction in marketing spend as the reality of a recession bites into consumer confidence.

August 6, 2008

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