Emerging Trends in Insurance Marketing

As the VP of Marketing at Orion180, what do you perceive as the most significant emerging trends in the marketing landscape, particularly within the insurance industry, and how is your department positioning itself to capitalize on them?

1. Creating empowering and catalytic content and campaigns:

More and more companies are moving beyond typical personalization and focusing on what Gartner describes as “catalytic marketing.” Dove's "Real Beauty Sketches" campaign has created a phenomenon. This campaign sparked a global conversation to challenge societal beauty standards and find ways to empower women to pursue beauty. This campaign has been so engaging and empowering that it has gone viral with almost 200 million views.

The catalytic moments created by this type of content and campaign often generate deep engagement, empowering prospects and customers to achieve or exceed their goals. The results for the brand would be higher awareness, consideration, and purchases. 

2. Leveraging deep data analytics and AI to advance digital transformation and deliver consumers a seamless omnichannel experience:

The insurance industry is still undergoing a digital transformation, and some struggle with gaining efficiency and meeting customers’ expectations. Many carriers' challenges are more from outside than inside the industry. They are constantly challenged to provide experiences that are near or match those of Amazon, Netflix, Uber, and the like. It is no small feat. Increasingly, insurance customers are using websites, online platforms, and mobile apps to research, purchase, and manage their insurance policies, demanding a similar experience from these established champions. 

We are pressing to build an infrastructure that allows us to understand the customers’ behavior, needs, and wants, and more significantly, their expectations on the fly. We position ourselves to embrace digital transformation and leverage AI to engage with customers catalytically and provide them with truly seamless digital and offline experiences.

3. Competition from car manufacturers and other outside industry behemoths: 

Established insurance companies have traditionally dominated the insurance industry. However, with the rise of technology and the increasing integration of cars with advanced features and data collection, car manufacturers have started to enter the insurance market.

Car manufacturers have a unique advantage in this competition as they can access vast real-time data collected from their vehicles. This data includes information on driving behavior, vehicle performance, and real-time accident data. By leveraging this data, car manufacturers can offer personalized insurance policies tailored to individual drivers. This level of customization can be very appealing to consumers looking for more flexible and cost-effective insurance options. Strong brand recognition and customer trust can also give them an advantage over traditional insurance companies.

In addition, industry behemoths like Amazon and Google, among others, are eyeing the insurance market. These companies have a strong tech industry presence and the resources to disrupt traditional insurance models. Amazon has already started offering insurance policies for small businesses, while Google has invested in several insurance technology startups.

4. Social Responsibility and Sustainability: 

Customers increasingly seek out and willingly align with insurance companies that offer quality services and demonstrate a commitment to social responsibility and sustainability. As a result, more and more insurance companies are diligently exploring and incorporating these values into their marketing strategies. Many companies highlight active community involvement, green policies, and ethical business practices. 

The case of The Co-operators, a Canadian insurance company, can be a success story. Corporate Knights ranked Co-operators as the top insurer globally for sustainability in June 2023. Co-operators are recognized for their commitment to sustainability and social responsibility. They have implemented a comprehensive sustainability strategy that includes reducing their environmental footprint, investing in sustainable businesses, and supporting community projects. Their genuine commitment to these values has increased customer loyalty and trust, proving that social responsibility and sustainability can benefit businesses.

How do you see consumer behavior altering regarding their engagement with insurance products and services in the changing digital landscape?

Insurance consumers' behaviors are changing. Powered by new technology and online platforms, consumers now have more information access options than ever. In the comfort of their home or offices, they can conduct thorough research and compare different companies and product options before making a purchase decision anytime they wish. They are becoming more empowered, better informed, less patient, and more demanding. They expect the best experience, not just the best in the insurance industry. As mentioned, they are comparing the experience they receive from insurers to those of other industries, from Amazon, Apple, or other service champions.  

Consumers now hunger for convenience and speed; they expect seamless digital and offline experiences, such as user-friendly websites and capable mobile apps, quick response times, and personalized services. They want to be able to access policy information, file claims, and connect with customer service representatives on their mobile phones or on the web without long wait times or the need for lengthy phone calls or paperwork.

Can you discuss some key challenges the insurance industry faces from a marketing and communications perspective? How is your team addressing these challenges and executing strategies accordingly?

1. Building consumer trust: This is not new; many insurers face negative views and mistrust from consumers. The causes can vary, but most are due to poor experience, the industry’s negative perceptions, and misunderstandings. Building trust through more open and authentic communication is critical. 

2. Intensified competition: The competition comes from both the share of voice and product differentiation. Everyone is fighting for customers' attention in an ever-crowding market and advertising environment, plus the rise of new media channels and platforms. Standing out in such a crowded market and differentiating oneself from competitors has always been a huge challenge.

Before your stint at Orion180, what previous experiences empowered you to develop and execute large-scale marketing programs leading to high-value customer acquisition?

Immersed in analytical projects on market competition and market structure with Prof. Richard Rogers at the University of Massachusetts sparked my strong interest in understanding customers’ preferences, behaviors, and expectations. This experience and marketing insurance and investment products at Equitable to distinct customer segments helped me understand the strategic and financial importance of targeting the right audience. More significantly, my long tenure with Amica Insurance allowed me to shape and optimize its marketing strategy and operations to fuel the company’s profitable growth. These diverse experiences uniquely position me to lead and innovate with Orion180’s marketing team.  

On an ending note, what is your advice for other senior leaders and CXOs working in the financial marketing landscape?

Embrace the future, embrace AI! The financial marketing landscape is on the brink of a revolution, and AI is the catalyst. It's more than just automating mundane tasks; it's about unlocking a new realm of possibilities. AI will empower you to create marketing campaigns that are not just targeted but surgically precise and deeply personalized.

Imagine being able to optimize your marketing strategies in real-time, tweaking your messaging, targeting, and media placements on the fly 24 hours a day to maximize impact. This isn't just a pipe dream; it's the reality that AI brings to the table.

But remember, the power of AI is only as good as the data it's fed. Investing in high-quality customer and prospect data is a must! Accurate, up-to-date, and well-organized data is the fuel that will drive your AI-powered marketing machine. So, invest in your data, and let AI take your marketing to the next level. Have a fantastic ride!