Acxiom Study Supports need for Digital Marketing Practices to Rejuvenate Life Insurance Market
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Offers insights on digital strategies to convert $5B in sales
LITTLE ROCK, Ark., January 17, 2012—A new study by Acxiom® Corporation (Nasdaq: ACXM), a recognized leader in marketing services and technology, finds that despite the apparent opportunities for growth in the life insurance industry, advancement remains sluggish. Nearly half of adults are uninsured or underinsured, bringing life insurance ownership to a 50-year low. Though there are a number of factors for the decline in life insurance, the study largely concentrates on carriers not reaching Millennial, Gen X and Boomer generations, many of whom prefer interaction through digital media channels.
Research from the study, “Life Insurance Marketing at the Crossroads,” reveals that consumers want multiple touches that address their unique motivations and current life needs. To accomplish this, life insurance carriers need to consider supplementing broadcast advertising and traditional direct marketing strategies with digital engagement strategies. Addressable digital channels are a good way to deliver more individualized messaging to specific target audiences, thus increasing the likelihood of interacting with consumers as they research for information.
The report puts forth clear evidence that digital is already a factor in life insurance shopping alongside more traditional methods:
- 68 percent of Millennials used social media as part of their life insurance shopping process
- 43 percent of Gen X conducted searches online to find information about life insurance
- 33 percent of Boomers report online information was among the top three influencers in their final decision
“Birth, death, marriage, divorce and retirement are all significant life experiences that represent valuable opportunities to re-examine life policy coverage,” said Rose Cahill, Acxiom vice president, insurance industry. “Consumers are already using digital channels to educate themselves and solicit advice about life insurance; therefore carriers should consider using digital to augment their more traditional marketing practices to reach these audiences with personalized messaging. This can lead to a major uptick in upsell and new business opportunities for the industry.”
Additionally, the study cites that Millennials and Gen X are both still open to direct mail as a means for transacting life insurance business, yet strong portions of each consider email communication and to a lesser extent, website interactivity to be acceptable alternatives. The data also suggests that conversion of just 10 percent of currently uninsured Millennials and Gen X represents a market potential of more than $5 billion annually.
The study was conducted in June 2011 and included responses from 3,027 respondents representing a sample of U.S. consumers age 18+. The survey addressed a wide range of questions regarding attitudes and behaviors pertaining to how consumers perceive life insurance and how they approach the shopping process.
For a copy of Acxiom’s latest study, please click here or call 1-888-3ACXIOM.
Acxiom is a recognized leader in marketing services and technology that enable marketers to successfully manage audiences, personalize consumer experiences and create profitable customer relationships. Our superior industry-focused, consultative approach combines consumer data and analytics, databases, data integration and consulting solutions for personalized, multichannel marketing strategies. Acxiom leverages over 40 years of experience in data management to deliver high-performance, highly secure, reliable information management services. Founded in 1969, Acxiom is headquartered in Little Rock, Arkansas, USA, and serves clients around the world from locations in the United States, Europe, Asia-Pacific and South America. For more information about Acxiom, visit Acxiom.com.
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