A Mature Industry   The auto insurance business is part of the    larger property and casualty (P&C)    insurance industr...
Safe Consumers   About 40% of the entire P&C insurance    industry is for personal policies (as    opposed to commercial ...
Safe Consumers   Consumers age 18 to 34 present an    opportunity for auto insurance carriers to    forge relationships w...
Leading Brokers & Underwriters   A.M. Best’s top 10 auto insurance    companies with regards to customer    satisfaction ...
Shopping Around   18% of Americans who hold auto    insurance are willing to change carriers to    save money   44% chec...
Trends that Drive Sales   Price and value are the top two factors    consumers say influence their auto insurance    sele...
The Future of the Industry   Online auto insurance shopping is likely    to increase, surpassing in-person and    telepho...
Advertising Strategies   Many auto insurance companies have    begun to offer a standard safe-driving    discounts and cr...
Advertising Strategies   Testimonials are great ways to highlight    an auto insurance carrier or agency’s    level of se...
Advertising Strategies   The world of auto insurance can be    confusing. Having a website and agents    that clarify the...
Advertising Service’sDigital Marketing-Internet BannersFacebook & TwitterMobile NewsMobile Websites & App DevelopmentDigit...
Auto insurance12
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Auto insurance12

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Auto insurance12

  1. 1. A Mature Industry The auto insurance business is part of the larger property and casualty (P&C) insurance industry. The P&C insurance industry is worth about $471 billion, experiencing a 2% decline in 2010. In the past year, about $40 billion worth of auto insurance premiums were purchased. Auto insurance companies are structured similarly to other property and casualty coverage providers. There are two primary types: mutual and private.
  2. 2. Safe Consumers About 40% of the entire P&C insurance industry is for personal policies (as opposed to commercial policies). 246 million cars are owned by Americans, and every car needs an auto insurance policy to go with it. Each state has its own auto insurance requirements that stipulate minimum coverage amounts for bodily injury and property damage.
  3. 3. Safe Consumers Consumers age 18 to 34 present an opportunity for auto insurance carriers to forge relationships with lifetime customers. These younger consumers are more likely to switch carriers for a savings of less than $300. Suburban and rural consumers are more likely to own cars than Americans living in metropolitan centers. Of all $1,500+ customers: 54.9% are female 27.0% are age 45-54 ; 63.0% have 3+ children
  4. 4. Leading Brokers & Underwriters A.M. Best’s top 10 auto insurance companies with regards to customer satisfaction are: Erie Insurance, The Hartford, State Farm, Liberty Mutual, American Family, GEICO, Nationwide, MetLife, and Automobile Club Group. Some insurance companies allow consumers to purchase directly, while others require that drivers purchase policies through an agent or broker. 39% of insurance shoppers prefer working with a local agent. 32% prefer working with carriers directly.
  5. 5. Shopping Around 18% of Americans who hold auto insurance are willing to change carriers to save money 44% check rates periodically to make sure they’re not missing out on good deals. 38% of insured Americans say that they are most likely to renew their current policy. 26.5% of current auto insurance customers have shopped for auto policies in the past year. 60.2% of customers that changed carriers did so because they found a better rate quote.
  6. 6. Trends that Drive Sales Price and value are the top two factors consumers say influence their auto insurance selection. Reliability and service (including customer service, claims processing, relationship history, and ease of doing business) follow closely. The agent relationship is more important to customers who choose captive agents (getting a 4.0 out of 5.0 on the scale of importance). Brand was the least important factor for all auto insurance consumers.
  7. 7. The Future of the Industry Online auto insurance shopping is likely to increase, surpassing in-person and telephone shopping. Today’s consumers are incredibly price- sensitive, so companies that focus on value and price messages will succeed throughout the recession.
  8. 8. Advertising Strategies Many auto insurance companies have begun to offer a standard safe-driving discounts and credits for each year they are accident free. This strategy appeals to safe drivers who feel they deserve special benefits. It is also a great feature to advertise.
  9. 9. Advertising Strategies Testimonials are great ways to highlight an auto insurance carrier or agency’s level of service and approachability. They are also a great addition to a company’s website, which is more important than ever. Carriers and agencies that succeed will have easy, informative websites and fast turnaround times for emailed quotes.
  10. 10. Advertising Strategies The world of auto insurance can be confusing. Having a website and agents that clarify the process and answer questions makes a carrier/brokerage a valuable resource to clients. Consider providing prospective customers with a glossary and an overview of how policies work and what options they can select to customize their perfect policy.
  11. 11. Advertising Service’sDigital Marketing-Internet BannersFacebook & TwitterMobile NewsMobile Websites & App DevelopmentDigital Sports & SponsorshipsTelevision Marketing-Key Day parts for Industry.Cause marketing opportunities.Sports & branding opportunities.

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