Direct marketing for insurance companies remains strong

The argument for the high cost of paper, printing, and shipping, popularity and reliance on direct marketing for insurers remains strong and growing. Instead, according to experts, consumers may want to prepare themselves for direct mail in the fourth quarter of this year.

“Our prediction is that direct marketing in life, health, P&C, and Medicare insurance is not only going to save but it will go far,” said Rich Goldman, CEO & Founder of Competence, a market intelligence research firm. “If you’re planning to do direct marketing, you might want to look at how you’re doing now or plan Q1 next year to try to get around the business, because in Q4 the mailboxes will be full.”

The pandemic, rising costs, supply chain disruptions, and rising interest rates have not dampened the interest of insurance companies in direct mail marketing, Goldman told a recent Society of Insurance Research webinar. Insuretechs’ entry into direct marketing also boosts volume. At the same time, reliance on e-mail or Internet advertising may decrease because some insurers have not found significant economic benefits.

“Healthcare providers, in particular, dipped their toes in the digital marketing waters last year and didn’t get the results they wanted,” he said. “So they’re back.”

Goldman also provided information on the information and content of the insurers in their direct mail, noting that many have experienced financial problems and rising princes.

“We’ve seen a 406% increase in inflation, interest rate, and trend life insurance quotes,” he said. “That’s 333% of health insurance.”

Goldman predicted that inflationary assets and casualties will request or increase discounts as inflation rises.

“Consumers and personal injury companies do not agree to look at discounts as a secret,” he said. “And in fact, we’ve seen a 74% increase in auto insurance rates since the pandemic began.”

Buyers increased

At a time when consumers are overwhelmed and confused by the barrage of direct mail, telemarketing, and digital marketing from third-party Medicare providers, the federal Centers for Medicare and Medicaid Services was prompted to take action this month after receiving more than 15,000 complaints about the terms. misleading. on TV and direct messages. CMS this month cracked down and issued new rules to restrict third-party Medicare Advantage sales.

“It’s not that marketing is misleading,” Goldman said. “But with the opinion of 15,500 consumers who felt they were misled you can’t argue with that opinion.”

As news of the recession became more prevalent, Goldman introduced a successful advertising campaign for The Hartford during “The Great Recession” that emphasized the company’s history, longevity, stability and strength in difficult times.

“We may or may not be headed for another fall,” he said. “But our advice is that you might want to prepare your equipment just in case. There could be a strong storm, so you want to have your pictures of how you’ve lived for 150 years … and what have you. Those things also affected The Hartford and consumers, sponsors, and producers. .”

Doug Bailey is a journalist and freelance writer based out of Boston. He can be reached at [email protected].

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