Auto Insurance

Insurance Marketing Podcast Explores What's Driving Consumers Shopping for Coverage

The latest edition of the Insurance Marketing Podcast features an interview with Jeremy Bowler of J.D. Power and Associates on how customers' attitudes toward insurance-coverage shopping are changing, along with the sources of information they rely upon to make insurance-buying decisions.

A step-up in marketing, particularly by auto insurers, means policyholders and candidates are being tempted in new ways, Bowler said. The focus for many insurers' marketing efforts--and even their target audience--is changing.

"The insurance industry has been blessed by phenomenal retention or renewal rates, averaging about 90% or just under that for the automotive policy renewals. If I compare that to, for example, the automotive industry, even the very best vehicle in terms of sales each year, something like the Toyota Camry doesn't come close to a 90% retention rate," Bowler said in the interview. "The focus in insurance is on policy retention, on acquisition and branding. With a few notable exceptions I'll grant you, most insurers were just not spending the kind of money that we're seeing today in advertising. Most of that spending was going toward commissions, and the job of finding the next prospect or building the relationship with a customer fell more to the local agent than perhaps to the carrier."

Bowler is a featured presenter at the 2008 Insurance Marketing and Advertising Summit, set for Nov. 6 at the Marriott Marquis in New York City. The one day conference, presented by the A.M. Best Company, will explore marketing and advertising in the insurance industry.

In conjunction with the conference, A.M. Best is continuing its podcast series focused on insurance marketing and advertising issues.