4 Insurance Marketing Trends to Watch in 2023

The days of making a splash or creating attention-grabbing content in the insurance industry are over. Today, insurance companies must do more than simply inform their intended audience that ‌ they exist. Instead, they need to stay on top of insurance marketing trends to:

• Connect with their customers in meaningful ways.
• Build a reputation as a reliable source of information.
• Maintain customer relationships.

According to the Insurance Information Institute, the global insurance premium market was worth $6.3 trillion in 2020. Swiss Re expects that global insurance premiums will exceed $7 trillion by 2023 as the insurance market enters a period of rapid expansion.

Stay Ahead of the Game: Top Insurance Marketing Trends for 2023

For this growth to occur, brands must capitalize on emerging marketing trends that will allow them to connect with prospective customers in meaningful ways in 2023. Consider these four insurance marketing trends:

1. Use Predictive Analytics to Compete for the Best Data Quality

Predictive analytics uses large data sets to identify meaningful relationships between factors and predict future events.

A recent survey by Willis Towers Watson shows ‌predictive analytics has increased sales for life insurance companies by 60% and reduced costs by 67%.

This increase in sales is possible since these insurers collect data to:

• Improve the way they deal with customer claims.
• Retain customers.
• Determine premiums based on market conditions and costs.
• Keep an eye out for high-risk customers, particularly those who may be about to cancel due to poor service.
• Automate the claims resolution process to save time.

This data comes from various sources, including social media, customer service interactions, and artificial intelligence.

2. Technological and Digital Advancements in the Insurance Industry—Insurtech

Thanks to the advancements in insurtech, insurance companies can now think outside the box and innovate. 

Before the advent of modern technology, people dreaded ‌purchasing insurance because it was complicated. Now, by providing various tools, insurtech has helped increase insurance availability while also lowering the cost.

Some of the prominent tools in popular insurance marketing trends include:

Artificial Intelligence (AI)

Consumers want to ‌customize every aspect of their experience, which insurers can leverage by using AI to create a wide range of personalized insurance policies.

AI has also shortened claim processing times and wholly reimagined the underwriting process. Furthermore, insurers can have faster access to data, eliminating human intervention and resulting in more accurate data reported in less time.

AI also identifies, assesses, and underwrites emerging risks and uncovers new revenue streams. It is apparent that AI is effective: 35.9% of North American insurance companies used AI in 2020, and we expect this to grow in 2023.

Blockchain Data

It's no surprise that most insurers are looking for ways to use blockchain now that web3 and AI are becoming more popular. At the same time, the metaverse is being promoted by the most engaged social media platforms, such as Facebook.

Blockchain is a distributed, peer-to-peer ledger of transactions built from virtually impenetrable blocks. It is also a decentralized system, and no government can influence or control it. 

However, smart contracts must be in place for the blockchain to function effectively. Smart contracts impose conditions on both parties for a transaction or exchange to be completed.

For example, a smart contract between an insurer and an insured can specify the terms of transferring funds from the insured's bank account to the insurer as payment for premiums. This does not necessitate the approval of a bank (the intermediary).

As a result, blockchain provides an opportunity for insurers to save money by reducing the time and money spent on data verification.

3. Influencer Marketing Allows Brands to Connect More Authentically With Customers

As technology advances and more people join the social media bandwagon, insurers will create long-term, meaningful connections by leveraging influencers.

How? It’s due to the fact that most people tend to buy products recommended by their favorite social media influencers. In fact, several surveys on influencer marketing have the following results:

• In 2022, the expected revenue from the influencer marketing market is $16.4 billion.
• Annalect and Twitter found that 49% of consumers rely on influencers to recommend products.
• 53% of women purchased a product because an influencer recommended it. They would not have bought the product if the influencer had not recommended it.
• In 2022, more brands will leverage micro-influencers because they are less expensive.

4. Customer Retention

As much as advanced technology and influencer marketing aid in bringing in new customers, it's still very expensive. According to one report, it costs six times more to get a new customer than to keep one.

To say that customer satisfaction is critical would be an understatement. It's a requirement in 2022. According to Gartner, 81% of marketers consider customer satisfaction the most important area of competition in their industry.

It's no secret that customer satisfaction continues to be a significant challenge for insurers, especially in light of cancel culture. A dissatisfied customer only needs to post a video or a written message detailing how insurance company X did not meet their expectations, and the internet will do the rest. As a result, insurers might lose clients, and new customers will not want to do business with them.

However, insurers can still be successful in customer retention.

Insurers must:

• Begin with transparency.
• Engage their customers to learn what they truly require.
• Build a loyal customer base.

This is where data gathering comes into play. Setting up a personalized dialogue based on individual preferences and wants is a more effective way to engage with a client. In this manner, the customer will feel like their desires are valued.

The Bottom Line on Today’s Insurance Marketing Trends

There are many factors to consider regarding insurance marketing trends, like artificial intelligence (AI), predictive analytics, insurtech, blockchain, and related technologies. The most underutilized of these is predictive analytics.

The insurance industry is uniquely positioned to benefit from predictive analytics due to its over-reliance on data analysis. The insured can use predictive analytics to prioritize their claims without wasting resources. At the same time, insurers can use the data collected by predictive analysis to determine which services they need to introduce, improve, or eliminate.

To do so effectively, you'll need to work with Pilotbird, the best insurance analytics provider. We can help you better score risk, engage customers, and detect claims fraud by analyzing social data points in life and health insurance. Furthermore, our AI-powered products will improve the accuracy and relevance of underwriting, distribution, customer engagement, and fraud detection, resulting in increased effectiveness.

Sources

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Chris Pemberton. (2018, March 16th) Key Findings From the Gartner Customer Experience Survey.Gartner.com. https://www.gartner.com/en/marketing/insights/articles/key-findings-from-the-gartner-customer-experience-survey

David Rodeck, John Schmidt (2022, February 10th). What Is Blockchain? Forbes.com. https://www.forbes.com/advisor/investing/what-is-blockchain/

Eric Burgess. Influencers Rival That Of Friends. InfluencerOrchestrationNetwork.com. https://www.ion.co/twitter-has-released-a-report-showing-consumers-seek-product-recommendations-from-influencers-almost-as-much-as-they-do-from-friends

Jacinda Santora (2022, February 14th). Key Influencer Marketing Statistics You Need to Know for 2022. InfluencerMarketingHub.com. https://influencermarketinghub.com/influencer-marketing-statistics/

Kim Steiner (2019, July 8th).The financial rationale for predictive analytics. Wtwco.com. https://www.wtwco.com/en-US/Insights/2019/07/the-financial-rationale-for-predictive-analytics

Kimberlee Morrison (2016, December 19th). 53% of Women Made Purchases Due to Influencer Posts (Survey). ADWEEK.com. https://www.adweek.com/performance-marketing/53-of-women-made-purchases-due-to-influencer-posts-survey/

Tricia Morris (2016, March 15th). It is 6 Times More Expensive to Win a New Customer than to Retain an Existing One. Business2Community.com. https://www.business2community.com/strategy/6-times-expensive-win-new-customer-retain-existing-one-01483871

Turbulence after lift-off: global economic and insurance market outlook 2022/23. Swiss Re Institute. https://www.swissre.com/institute/research/sigma-research/sigma-2021-05.html?utm_medium=email&utm_source=2021-11-17-sigma-alerts-issue5&utm_campaign=here+sigma+5+weblink&1455B4&&&&

Werner Geyser (2022, February 11th). The State of Influencer Marketing 2022: Benchmark Report. InfluencerMarketingHub.com. https://influencermarketinghub.com/influencer-marketing-benchmark-report/

World Life And Nonlife Insurance In 2020. Insurance Information Institute. https://www.iii.org/publications/insurance-handbook/economic-and-financial-data/world-insurance-marketplace

Additional Resources

https://artificial.io/company/blog/7-insurance-industry-trends-for-2021

https://www.duckcreek.com/blog/insurance-technology-trends/

https://www.doxee.com/blog/digital-marketing/5-insurance-market-trends-to-watch/