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Marketing Insurance In A Volatile Consumer Landscape

By Derek Stubbs | October 15, 2021 | 0 Comments

MarketingCustomer Acquisition and RetentionCustomer ExperienceCustomer Understanding and Marketing Execution

The old insurance salesperson trope goes, “I’m not selling insurance. I’m selling peace of mind.” These days, however, peace of mind is hard to come by. Ours is a world where new risks pile up like woodchips in a logging camp: pandemics, evermore volatile weather, market performance seemingly untethered from fundamentals, losing ones balance in a game of Red Light Green Light in the hit series Squid Game. Everyone, one might think, should crave insurance. Perhaps everyone does.

Economics Play A Part

But wanting to mitigate one’s risk isn’t the same as being able to. Consider, for example, that most forms of credit have been constrained since the Great Recession. It’s difficult for those with less access to credit to “lock up” liquidity in insurance policies. In fact, we see this in our data. 60% of consumers with household incomes greater than $100k own home or renter’s insurance policies. Meanwhile just 41% of those with incomes under $100k do. Those with higher incomes tend to have higher credit scores and therefore more liquidity. Therefore it’s more possible for wealthier consumers to purchase insurance policies.

These are among the reasons that innovations like usage-based insurance models and technologies continue to take hold.

So Does Understanding New Consumers

But it’s not all economics. Marketers often struggle to connect with new generations of  diverse consumers. Not only are younger consumers like Gen Z are more racially and ethnically diverse than previous generations, they also evince more diverse lifestyles. For example, more than 12% of Gen Z tell us in our Values and Lifestyle Survey that they are bisexual, whereas just 3.4% of the total US population says so.

This is why we’re fans of approaches like that of Progressive. They offer unmarried cohabitating couples the opportunity to save by sharing auto insurance. And they do it with non-judgmental language. “With Progressive,” the say in their marketing messages, “you can share car insurance without sharing a last name.” This is an example of meeting consumers where they already are. And they get there by understanding consumer insights.

For marketers, that might be the key to achieving their own peace of mind.

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