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Posts in ‘Insurance’

A Hidden Danger in the Gig Economy

Oct 01

Millennial working freelance in coffee shop

The Gig Economy or Freelance Economy has become the norm for many workers. According to a recent survey, more than 53 million Americans are doing freelance work. That’s 34% of the entire workforce. And no one is embracing freelancing more than Millennials. A full 69% of Millennials surveyed said they would prefer to freelance provided they could find enough projects to earn the salary they want.

Yet for all the flexibility and freedom, freelancers miss out on traditional corporate benefits. And while most freelancers understand the need to purchase individual health coverage, another key piece of their safety net remains off the radar –life insurance.

Reports show that only 34% of adult Millennials own an individual life policy. Yet 55% are already married or in a domestic partnership. Among older Millennials, between ages 25-34, there are now 10.8 million households with children. Unless these families proactively take steps to protect themselves, they remain vulnerable to financial disaster.

How can insurers raise awareness of the need for life insurance? How can they break though when Millennials have become so resistant to traditional advertising approaches? The answers to these and other questions can be found in our new ebook, The Essential Guide to Marketing Life Insurance to Millennials. Download your copy today.

If you would to tap our expert guidance, contact Mark Silverman for a free, custom consultation.

How to Create More Demand for Insurance

Sep 29

chart showing sales increase

America is experiencing its greatest age wave in history – which means the market potential is staggering. LIMRA estimates that one quarter of Baby Boomers do not yet own any life insurance at all. Of those who do have a life policy, almost half have only group coverage. As these Boomers retire, those who don’t have any coverage except through their jobs will need to replace their group policy with individual insurance. Literally millions of households, across all age groups, still need to prepare and protect their families from the expenses and financial reversals that death can bring.

The need for protection has never been more evident. People are being bombarded by more risks coming from more sources than ever before. With the fallout from Great Recession, globalization, climate change, sudden outbreaks of disease, and other forces beyond their control, Americans have more reasons to feel more insecure than ever before. Everything they hold dear is under threat, from their livelihoods to their retirement security to their health, homes and possessions.
Yet at this time when insurance marketers should be benefiting from these heightened anxieties, too many insurers find themselves struggling with slow growth, increasing marketing costs and reluctant consumers.

Why is there so much apathy toward insurance? What can insurance marketers do to change it? Find out in our free ebook entitled There’s Never Been A Better Time to Market Insurance. Download your copy today.

Millennials and The Future of the Insurance Industry

Jul 29

Millennials

As stated in a recent industry publication, the goalposts for the life insurance industry are shifting, driven in part by the expectations of the next generation of customers who represent an enormous area of growth for new policies that will be issued over the next 25 years. While they will continue to be awoken to the need and importance of life insurance by the same traditional key life events—marriage, having children, family health scares—their expectations of how the industry will help them understand coverage options, and experience getting coverage in place is markedly different to their parents’ expectations and experiences.

Life insurance marketers are scrambling to understand the Millennial audience, its expectations, needs and preferences. As mentioned in our previous post, traditional consumer research often falls short when it comes to uncovering true, actionable insights. What insurance marketers are clamoring for are findings that will show them exactly what to say to Millennials, and how and where to say it.  If you would like to know how to develop marketing that reaches the SOUL of the Millennial consumer, request our free ebook today.

Secrets to Selling Life Insurance to Millennials – Part II

Jun 23

Millennials, roughly defined as everyone born between 1980 and 2000, are the hot topic for marketers across industries. But perhaps no industry is struggling with the Millennial conundrum quite as much as the insurance industry. For life insurance marketers, separating Millennial myth from reality is the key to success. While popular perception says Millennials are single and living at home or sharing an apartment with friends, reality is that sizable segments within Millennials are shouldering significant family responsibilities.

Among older Millennials, between ages 25-34, there are now 10.8 million households with children. Further, with Millennials accounting for 80% of the 4 million annual U.S. births, the number of new Millennial parents stands to grow exponentially over the next decade. The birth of a child is a proven trigger for life insurance purchase. And given that 57% of Millennial mothers are unmarried, the need for the life insurance safety net is palpable.

Identifying Millennials with an insurance need is only the first step. The more difficult task is speaking to them in a way that will get them to stop, pay attention and take action. Rather than sitting around a conference room table guessing and experimenting with what will resonate with this audience, Bodden Partners believes the best way to understand any consumer is to listen to them.

We have developed a proprietary, trademarked interviewing technique which we call The SOUL Process. We hold in-depth, one-on-one listening sessions with consumers and potential buyers about their needs as well as their attitudes and reactions to a particular product offering and brand. The ultimate goal of the questioning technique is to get consumers to disclose what they would need you to say and how you would need to say it in order for them to be interested in your product.

Curious about how it works?  Request our free ebook today.

Secrets of Selling Life Insurance to Millennials – Part I

May 28

Millennials, roughly defined as everyone born between 1980 and 2000, are the hot topic for marketers across industries. But perhaps no industry is struggling with the Millennial conundrum quite as much as the insurance industry. According to a LIMRA study, only 34% of Millennials own individual life insurance.

The Census Bureau projects that the Millennial population at 75 million people, and growing. This generation continues to expand as young immigrants swell their ranks. With a growing influx of immigrants and immigrant births, Millennials are the most diverse generation in history, yet among marketers there is a tendency to assume they are the same when it comes to their lifestyle, use of technology, attitudes, behaviors, opinions and preferences.

For life insurance marketers, separating Millennial myth from reality is the key to success. In upcoming editions of this blog, we will be exploring the challenges and opportunities of marketing life insurance to Millennials. We invite you to join the conversation.

3 Keys to Breakthrough Life Insurance Sales

Jan 29

There has never been a more challenging time to market life insurance. Fewer people are buying life products than ever before. Many are still struggling with the fallout from the Great Recession and can scarcely afford to purchase coverage. Others, who can afford it, don’t feel a pressing need to go out and buy it. Of the major protection products, life insurance gets lost in the shuffle when compared with health insurance, homeowners or auto insurance. These products all cover essential day to day risks, whereas studies show life insurance is considered a lower priority.

Faced with challenges like these, what is an insurance marketer to do?

It is in this very environment that Bodden Partners thrives. To find solutions to all of these challenges, we use a combination of proprietary consumer research methodologies, social media listening, and customer experience tools to uncover not only the root cause of the problem, but what it would take to turn consumer behavior around.

Our new report, There’s Never Been A Better Time to Market Insurance details the three keys to overcoming the challenges of life insurance marketing. Request your copy today.

4 Reasons Consumers Don’t Buy Life Insurance (and How to Overcome Them)

Nov 25

LIMRA has just published a fascinating article about why consumers are not buying life insurance. As previously reported in this blog, study after study has shown the decline in individual life insurance. Industry statistics report that ownership is at a 50 year low and this decline can be seen across incomes and life stages. What is driving the downward spiral?

LIMRA suggests there are four primary reasons:

1. People have other financial priorities right now.

2. They think life insurance is too expensive.

3. They have a difficulty making the decisions involved in the purchase.

4. They put it off.

These challenges are nothing new to insurance marketers. The issue lies in how to overcome them. LIMRA suggests that behavioral economics offers the industry a new tool. In short, behavioral economics is the study of how decisions are made and the mechanisms that drive choice. In short, marketers need to develop strategies to overcome the obstacles preventing people from buying.

Some solutions proposed in the article include demystifying the cost of insurance, focusing on the positive and repositioning life insurance as a means to help consumers meet their financial obligations, adapting product design to different life stages and fostering engagement to make the decision process easier.

At Bodden Partners, we have been practicing these life insurance marketing principles for years. Our campaigns have lead to breakthrough results for our clients. If you would like to find out how we can help craft a custom solution for your insurance marketing problems, contact Mark Silverman for a free consultation.

Overcoming the Challenges of Life Insurance Marketing

Sep 30

According to a study by LIMRA, the leading research firm for the life insurance industry, ownership of life insurance has been steadily declining for decades and is at a 50-year low. Industry analysts believe there are a number of factors behind the downward spiral.

In the glory years of the industry, families depended heavily on one wage earner. Premature death of the sole breadwinner would spell financial disaster. With the rise of the two-income family, longer life spans, and a shift toward investments as a means to provide for the future all combined to create a false sense of security and diminish the motivation to buy life insurance.

Insurance agents began looking for new ways to market the product, positioning it as a tax-deferred savings vehicle. In pursuit of high net worth consumers, many agents walked away from the middle to lower income market.  The combined effect of agent neglect and consumer indifference combined to drive life insurance sales to historic lows.

It was in this environment that Bodden Partners was hired to help the National Education Association sell life insurance to its members. Through a variety of database marketing strategies and creative techniques, we create a breakthrough program that has garnered unprecedented policy sales and a trophy case full of industry awards. If you would like to put our insurance team to work for you, contact Mark Silverman for a custom consultation

Bodden Partners Wins PIMA Award

Jul 29

Our direct marketing team added another trophy to the shelf at this year’s Professional Insurance Marketing Association (PIMA) Marketing Methods competition. The annual contest highlights the best work in the insurance marketing industry and recognizes excellence in marketing strategy, creative strategy and results.

We are particularly proud of our entry for the NEA Members Insurance Trust. Their AD&D offering is a mature product that has been marketed through stand alone direct mail for decades. The typical buyer is a member who has been with the NEA for several years. Given their repeated exposure to the same product, a large part of our challenge was to change the dynamic of how is product is sold, without increasing the budget or using any additional marketing channels.

Our experienced team of insurance marketers completely re-engineered the marketing strategy, sales approach and creative design to arrest attention, engage the member with a deeper level with a greater sense of urgency. The results were unprecedented in NEA’s history. Using the same budget as the previous control, we were able to nearly triple both response and conversion.

If you would like to put our insurance team to work for you, contact Mark Silverman at msilverman@boddenpartners.com

Employers Moving Toward Private Healthcare Exchanges

May 14

The employee benefits marketplace is quietly undergoing one of the largest transitions in recent history. A small but quickly growing number of companies are shifting from traditional healthcare coverage to private healthcare exchanges.

Private exchanges appeal to employers because they make it easier to predict and control healthcare costs. According to a recent survey by Towers Watson, the average annual cost of coverage for both employers and workers was $12,535 in 2013. Employees are paying almost a quarter of the cost with employees funding the balance.

Under the private exchange arrangement, employers gain more control over costs by contributing a fixed amount or “defined contribution” toward employee health coverage. Workers use those funds to shop for and subsidize coverage within the plans available to them.

The concept is proving popular with employers and employees alike. IBM and Time Warner recently said they are moving retirees to exchanges for those not yet Medicare-eligible and other exchanges for those who are. When Walgreens made private healthcare exchanges available this year 120,000 eligible employees opted for coverage for themselves and 40,000 family members. Once limited to two healthcare options, Walgreens workers now have a choice of as many as 25 plans from five insurers.

Interest in private exchanges is booming. According to a recent study by the Private Exchange Evaluation Collaborative, 45% of employers have either implemented or plan to consider private exchanges for active, full-time employees before 2018.

What are employers looking for in a private exchange? What are employee attitudes toward private healthcare exchanges? What lessons can be drawn from the federal and state experiences with creating a health insurance marketplace? What implications do private exchanges have for the voluntary benefits market? These topics will be discussed in future editions of this blog. We invite you to join in and follow the discussion.