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The Challenges of Insurance Marketing & How to Overcome Them


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

The goal of most marketers is to differentiate their offering from the competition. In the insurance industry, this is extremely difficult as the insurance programs on the market are very similar, if not exactly the same. The differences in policies often come down to the specific policy wordings, where policies will vary in what may be included and excluded. These variations can be very specific and also complex so it can be difficult for those outside the industry to understand. As such, communicating these differences is unlikely to be a major selling point.  As an insurance marketer, you have to dig a lot deeper to find ways to separate yourself apart from the competition.

Reaching the Consumer

In most industries, marketing communications go from the company directly to the target audience – whether that is a business or an end customer.  With insurance marketing, the path is slightly more complex. Many consumers purchase their insurance through a middle man such as an underwriter or an insurance broker.  In addition, they may also be recommended insurance services from someone else that they work within the financial services industry, such as their financial planner. As a result, insurance marketers often have to create messages that not only engage the user, but also the other segments that influence the decision.

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

If your marketing materials are not compliant, you risk damaging clients’ trust and ending up in legal trouble. In a regulated industry, it is vital that everything you produce falls within the stipulated guidelines. 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.

At the Lead Agency, we’ve worked in the Insurance sector for more than 15 years. In that time have helped a range of businesses, including Insurance Brokerages, Underwriters, Online Insurance providers, Authorised Representative Networks and Insurers. If you need help with your insurance marketing, get in touch with us today. And don’t forget to check out our other industries; Education Marketing | Financial Services Marketing | Industrial Marketing | Insurance Marketing | IT Marketing | Law Firm Marketing | Manufacturing Marketing

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