Marketing and Advertising Strategies in UK Personal General Insurance 2008

Published by: Datamonitor

Published: Apr. 24, 2008 - 46 Pages

Table of Contents

Overview

Catalyst

Summary

Executive Summary

Advertising spend increased in 2007

Confused.com launched an innovative marketing campaign in 2008

The top 10 advertisers increased their spending by 36.7% in 2007

The top 10 insurance advertisers collectively spent more than £125m on TV advertising

Providers spent over £200m advertising motor insurance

A total of £108m was spent on combined building and contents insurance advertising and £21m on contents advertising

Table of Contents

Table of figures

Table of tables

Marketing strategies

Introduction

Providers are increasingly positioning their products as being green

Most providers are still positioning their products as low price

CIS and Kwik Fit Insurance are positioning their products in the green space

Hiscox is targeting mid net worth consumers via television advertising

Female only insurers continue to target the female segment with product differentiation

Marketing campaigns for female only insurance often concentrate on special cover features within a policy

Intune, the over 50s insurer, highlights its involvement with Help the Aged within its advertising campaign

Aggregators are competing on market coverage and product feature comparisons

Moneysupermarket.com offers the widest personal insurance product coverage of the leading comparison websites

Go Compare places an emphasis on policy feature comparison in advertising campaigns

Confused.com launched an innovative marketing campaign in 2008

Top 10 advertisers

Introduction

Confused.com entered the top 10 advertisers in 2007

The top 10 advertisers increased their spending by 36.7% in 2007

Direct Line was the number one advertiser in 2007

Confused.com entered the top 10 advertisers in 2007 illustrating the increasing importance of aggregators as distributors

Saga reduced its advertising spend in 2007

The AA and RAC saw dramatic increases in their spending due to the inclusion of breakdown cover

TV was the dominant advertising media in 2007

The top 10 insurance advertisers collectively spent more than £125m on TV advertising

SAGA and RIAS focused their advertising strategy on direct mail

Other media such as radio and press played a smaller role

Most providers lead with motor insurance advertising

The top 10 spent £106.3m on advertising motor insurance in 2007

Spending on accident and health insurance saw a small decline

Advertising spent on other smaller lines increased dramatically in 2007

Motor insurance advertising

Confused.com became the second largest motor insurance advertiser in 2007

Providers spent over £200m advertising motor insurance

Confused.com, RIAS and Zurich joined the top 10 motor insurance advertisers in 2007

Five of the top 10 motor insurance advertisers scaled back their involvement in 2007

TV dominated media spend among the top 10 motor advertisers

Confused.com, the AA, RAC, Churchill and Direct Line spent very large proportions of their budget on television campaigns

Confused.com is aiming to scale up its business via TV advertising

The AA focused its advertising message on price in 2007

The RBS companies continued to engage in strong television marketing campaigns in 2007

RIAS and Zurich use a direct mail strategy

Press, radio and outdoor advertising account for a small proportion of the advertising budget

Motor insurance advertisers ranked 11-20 spent more of their budget on direct mail

Direct mail accounted for the largest spend for advertisers ranked 11-20

Lloyds TSB chose to devote its entire marketing budget to direct mail advertising

Home insurance advertising

Household advertising spend increased by a fifth in 2007

A total of £108m was spent on combined building and contents insurance advertising and £21m on contents advertising

More than half of household insurance advertising expenditure was spent on direct mail marketing in 2007

Direct mail is a popular way of advertising combined buildings and contents policies among the top 10 advertisers

The top 10 building and contents advertisers consisted of a mixture of direct insurers, insurers, brokers and bancassurers

On average, the top 10 advertisers spent the largest proportion of their marketing budgets on direct mail, with brokers driving this trend

Direct insurers were more likely to dedicate a large proportion of their budgets towards television advertising

Press advertising was common among the top 10 building and contents advertisers in 2007

Direct mail remained the focus for buildings and contents advertisers ranked 11-20

Direct mail campaigns accounted for the majority of advertising expenses for advertisers ranked 11-20

Fewer advertisers in the 11-20 group used press and television campaigns to promote their building and contents insurance

The top 10 contents only advertisers saw a large increase in their marketing spend

The total marketing spend of the top 10 contents only advertisers increased dramatically in 2007

Eight of the top 10 advertisers used direct mail as their primary method of advertising their contents only products

Direct mail remained a popular medium to advertise contents only insurance in 2007

Halifax was the only advertiser in the top 10 to pursue a television campaign in 2007

Direct mail remained the most popular medium for advertisers in the 11-20 bracket

Six advertisers in the 11-20 bracket spent their entire budgets on promoting contents only insurance through direct mail campaigns

APPENDIX

AA and RAC

Methodology

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: Top 10 personal general insurance advertisers, 2006-07, (£)

Table 2: Top 10 personal general insurance advertisers' spend by media, 2006-07, (£)

Table 3: Top 10 personal general insurance advertisers' spend by product, 2006-07, (£)

Table 4: Top 10 motor insurance advertisers, 2004-07 (£)

Table 5: Top 10 motor insurance advertisers spend by media, 2007 (£)

Table 6: Top 11-20 motor insurance advertisers spend by media, 2007 (£)

Table 7: Total household advertising spend, 2006-07, (£)

Table 8: Top 10 building and contents advertisers' spend by media, 2007 (£)

Table 9: Top 11-20 building and contents advertisers' spend by media, 2007 (£)

Table 10: Top 10 contents-only insurance advertisers, 2004-07 (£)

Table 11: Top 10 contents-only insurance advertisers' spend by media, 2007 (£)

Table 12: Top 11-20 contents-only advertisers' spend by media, 2007 (£)

List of Figures

Figure 1: Swinton heavily featured online discounts as part of its marketing campaign in 2008

Figure 2: Kwik Fit launched the Green Insurance Company in August 2007

Figure 3: Hiscox launched a new advertising campaign promoting the prestige and breadth of cover of its home insurance

Figure 4: Sheila's Wheels has highlighted special cover features in its advertising campaigns

Figure 5: Intune promotes its involvement with Help the Aged

Figure 6: Money supermarket.com has focused on a price centric approach to marketing

Figure 7: Direct Line spent more money advertising general insurance products than any other provider in 2007

Figure 8: TV was the media of choice for insurance advertisers in 2007

Figure 9: Providers spent most of their budget on motor insurance in 2007

Figure 10: Confused.com launched its Million Pound Giveaway promotion in 2008

Figure 11: RIAS and Zurich used a direct marketing strategy to advertise motor insurance in 2007

Figure 12: Television and direct mail remained the dominant form of advertising among motor insurance advertisers ranked 11-20

Figure 13: Direct mail accounted for the largest media spend for the top 10 home insurance advertisers

Figure 14: Norwich Union launched its We can campaign in 2007

Figure 15: Direct mail and TV remained the dominant forms of buildings and contents advertising in 2007

Figure 16: Only three players attributed some of their budgets to television advertising in 2007

Figure 17: Privilege, Abbey, and CIS devoted their entire budgets to direct mail advertising in 2007

Figure 18: Contents only advertisers belonging to the 11-20 bracket chose to promote their products exclusively through direct mail and press advertising

Abstract

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