Mail in the motor insurance sector

Demand for motor insurance is reliably consistent, but brand loyalty is low and consumers often switch providers.

That’s particularly true as the cost of insurance rises. High levels of fraud and expensive personal injury claims pushed up premiums by an average 40% in the year leading up to March 2011, according to the AA.

Although the sector’s ad spend has declined year on year, it remains relatively strong at £178m in 2010.

This 2011 MMC report uses data from BMRB, Mintel, Nielsen Ad Dynamix and TGI to examine the strengths, weaknesses and marketing opportunities in this sector.

Key insights include:

•Insurers are failing to target younger age groups. via direct mail. Women and ABC1s also represent a large proportion of motor insurance holders, yet are disproportionately under-mailed.

•Insurance mailings enjoy a high open rate - 92% of consumers open
a piece of direct mail from an insurance provider.

•Direct mail is a key channel to the market with a 32% share, second only to TV advertising.