Overcoming the Challenges of Insurance Marketing

The insurance industry is constantly changing. Businesses in the industry have to navigate a range of advances in technology and changing consumer behaviours to stay relevant.

Insuretechs, the Internet of Things and advancements in mobile have disrupted the insurance landscape. Not to mention the more stringent compliance requirements and consumers’ raised expectations for individualised insurance programs. Insurance businesses have to keep up with these changes and adapt their strategy in order to stay relevant in today’s insurance market.

Marketers in these businesses not only have to keep up with these trends, but they also have the difficult job of trying to sell insurance products.  While the marketing tactics and channels used in insurance marketing are similar to other industries, the way insurance marketers have to create ads and write copy is highly specialised and specific.

Insurance marketing isn’t easy. The following are some of the reasons for this.

Why is Insurance Marketing so Difficult?
Perceptions of Insurance Products

First and foremost, insurance is an intangible service, and an intangible product may as well be invisible. As an intangible product, it is very difficult for prospects to assess the quality or value of their insurance policy. In addition, customers who are looking to purchase insurance products are not just looking to purchase a financial program, but they want a sense of financial security and protection. These intangibles are invaluable to the consumer, but they’re not easy to market. To add more complication to the process, insurance is often perceived as a “necessary evil” and customers may never really know the true value of the product if they never have a claim.

Similar Products

Insurance policies are often incredibly similar across the board, with differences being technical and difficult for those outside of the industry to understand. Thus, differentiating your business can be particularly challenging, even though doing so is no less important. If prospects aren’t convinced that you’re the best option for them, they’ll likely end up looking to have their needs satisfied elsewhere. Your company needs to construct a unique value proposition that sets you a part from the competition and, of course, it needs to be something that is easily understood by the average person.

Reaching the Consumer

While in many sectors your target audience comprises of the individuals who will actually be purchasing your product or service, this is not always the case in the insurance industry. There are many people who will research and decide which insurance policy is right for them themselves, but there are also numerous circumstances where this doesn’t occur. For instance, an individual may gain professional assistance and guidance from an insurance broker. In some situations, a financial planner may also advise individuals on whether or not your insurance offering would be right for them. Because of this, those in the insurance sector need to not only reach their end buyer, but the professionals involved in the decision making process as well.

Writing to Compliance

Compliance regulations are becoming more stringent across financial services and insurance is no exception. This means that it is vital to ensure all of your marketing content, from your website to your brochures and newsletters, is compliant with current standards.  If your content does not comply, your company could face significant legal penalties. Non-compliant content can also mislead or confuse potential clients, which can damage their trust in your brand.

How to Overcome the Challenges In Insurance Marketing

The key to successfully selling an intangible product like insurance is to differentiate your offering from your competitors. This comes from fully understanding your client’s motivation and buying behaviour to identify your unique selling proposition, which you then communicate with clients and prospects through your marketing communications.

Know your Target Audience

Today, clients expect personalisation at every step of their buying experience. If your message isn’t relevant, they’ll likely just ignore it. As such, it is vital to segment your audience so that you can send them targeted communications.

There are a number of tools available that can help you do this, like data management systems and Google Analytics.  By using in-depth insights into your consumers, you can develop a more complete picture of your target customer and segment them into target audiences that receive tailored, personalised messages accordingly. If you target your audience you’ll get a much greater return on your marketing investment.

Get Technical

Adapting to technology is no longer optional, it’s essential.  Your clients are online, searching for your products and services and researching and evaluating your business based on what they find.  Today’s consumers assume that a company’s online experience reflects the offline experience, so ensuring your online experience is positive is vitally important. Having consistency between online and offline experiences builds trust with clients.  In addition, incorporating online tools and features that make doing business with you easier will increase your client retention, so digital marketing is a must.

Stay Compliant

The insurance industry is highly regulated, so if your marketing materials aren’t compliant, you put yourself at risk. By ensuring your operations meet legal demands, you can avoid getting into legal trouble and damaging your relationship with client’s. In order to do this, you have to get involvement from executives and your legal department.  You can then set up the right processes to create and share content that is compliant. Find out more about what it takes to create a brilliant insurance marketing strategy today.

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