Digital Marketing in Insurance: A Partnership with Potential

by Catherine Stagg-Macey, April 19, 2010
Industry Trends
Global, Asia-Pacific, EMEA, Latin America, North America

Abstract

Insurers recognize that consumer behavior is changing and expect 60% of their customers to use digital tools to search for information before making a purchase.

Insurers have embraced established digital marketing methods to their advantage where it makes sense for the brand and the line of business. What is less clear is the interest and adoption rates in the emerging channels, and how priorities may shift from established to emerging in the coming years. In a new report, Digital Marketing in Insurance: A Partnership with Potential, Celent reports on the results of a detailed survey that looks to take stock of what insurers are doing today and what they plan to do with future marketing spending.

Established digital media such as emails and paid keyword searches currently dominate insurers’ marketing budgets. These methods are seen as considerably more effective than traditional marketing means, but survey respondents were also clear that, alongside these tools, social networks should attract significantly more marketing spending than they do today.

“We cannot get away from having specific, traditional measurable goals for the use of these new tools,” says Catherine Stagg-Macey, Senior Analyst with Celent’s Insurance Group and author of the report.

“At the end of the day, being ‘cool’ doesn’t matter. It’s about revenue, efficiency, and loyalty. The measurement of the impact of these emerging digital tools remains a significant hurdle for most insurers,” she adds.

This report looks to help business and IT engage in a fruitful conversation on how digital marketing tools are being leveraged in the market, and how this might be appropriately applied to their insurance organisations.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Introduction

4

Survey Methodology

5

The Current State of Play

7

 

Established Methods Dominate Budgets

7

 

Sector Differences Reflect Business Objectives

10

Does the Future Look Digital?

12

 

Customers Will Turn to Digital Tools for Information

12

 

Lack of Metrics Are a Barrier to Adoption

13

Geographic Differences

15

Final Thoughts

18

 

Key Findings

18

 

What Next?

19

Leveraging Celent’s Expertise

20

 

Support for Financial Institutions

20

 

Support for Vendors

20

Related Celent Research

21

Sign in to download reports and access personalized information