Good marketing strategies are crucial to insurance companies and can change the way they handle business drastically. A good marketing strategy can also change the way customers view the agency. This is especially true when insurance companies come up with new ideas.
Insurance companies are notorious for being slow to change and develop and the general ideas of insurance have remained the same for many, many years. There are not often innovative ideas that shake the whole nature of insurance agencies like there so often are in other markets. So when there is a big idea that could change the way insurance is done, the marketing strategy is so crucial to its success. People are not quick to want to change the way their insurance policy is covered and will not want to pay more for anything they don’t have to.
This becomes abundantly clear when talking about the UBI model that so many insurance companies are adopting to help lower customers auto insurance rates. Essentially the UBI measures how good a driver is by plugging in a dongle to your car and monitoring your driving habits. This should be a good idea for insurance policy holders who are good drivers because it could save them money. However, the device that monitors this is slowing losing steam (source) and a lot of it has to do with how this device was marketed.
Many people are concerned about the privacy of the UBI and its effectiveness. Frankly, a lot of this stems from the marketing strategy (or lack thereof) put into place for this device. The marketing strategy for insurance products is extremely important. As technology improves it only becomes increasingly important for insurance agencies to market their products correctly. The companies marketing these UBI devices should get active on social media and answer questions or concerns people may have about the device or create a youtube channel showing all the benefits of the device and how it could save insurance policy holders a ton of money. But instead the device is looking like it is going to be replaced by cellphones and new car programs which do essentially the same thing but perhaps are going to be marketed more effectively.
Insurance companies everywhere are having to adapt their marketing strategies for the new products and marketing is become increasingly important for insurance agencies.