John McKillip

In today’s economic climate, consumers are ever more mindful of the nickels and dimes especially when related to necessary expenses, such as auto insurance. With every state requiring some sort of coverage for its drivers, insurance companies are fighting tooth and nail for market share both on the air waves and in consumers’ mail boxes. These are tough times, and to save a few dollars, savvy consumers seem to have no issue leaving their provider of record to head for greener pastures- as long as it means more green left in the consumers’ pockets!

The Insurance Market has become a veritable battle ground with all sides taking to arms. Broad market mass mailings, in addition to television and radio spots, have become the weapon of choice for all the major insurance carriers as each tries to one-up the other in terms of what the presented average consumer savings may be vis-à-vis the competition.

Post purchase dissonance is cut off at the knees before it could walk by the displaying of competitor rates in solicitation mailings while at the same time the assumptive selling approach is made manifest by the presenting of the prospective customer with his or her new insurance card with a number and web address to call and activate coverage via phone, internet or even at the local office.

While the broad market mass mailings are solicitous in nature, trigger mailings are also being employed by insurance agencies and are the result of mined data pertaining to, primarily, online behavior on the part of the consumer. This relatively new marketing phenomenon leads to the bewilderment of such questions as “How did they know I was shopping for Car insurance?” or “How did they know I might need a homeowner’s policy?” Question Not. Ubiquitous Big Brother consumer market researcher is, in a word, omniscient!

Apart from their take no prisoners approach, which is the driving force behind their mail campaigns, the insurance companies go to great lengths to also supply consumers with a perceived value created by a sense of comfort. After all, shouldn’t the insured also feel assured? Consumers need to feel good about saving money. They need to be reassured they’re in good hands, they need to know they’re only human and can be forgiven for accidents, they need the security of a giant red umbrella and the charm of a talking lizard with a sophisticated British accent.

Indeed, the insured need to also be assured: Assured they’re receiving the best value at the lowest price while sacrificing neither comfort nor piece of mind. The war rages on.

Are you an insurance switcher? Did the mailings, radio ads, or TV commercials get you?

Photograph Credit:
Sabrina Segal