GLOBAL INSURERS MAY SPEND US$84 MLN ON DIGITAL MARKETING: POLL

Insurance companies worldwide are likely to invest US$84 million over the next three years to market themselves over mobiles and the Internet, says a survey.

According to a survey by IT consultancy Accenture of senior executives at 125 major insurance companies around the world, insurers are making rapid shift in investment focus to mobile technologies and digital marketing to expand their reach and market share.

The survey indicated that "insurers would increasingly shift investment priorities to mobile technologies, digital marketing, including social media such as Facebook and channel integration over the next three years."

Though a limited number of insurers said their current investments are focused on creating mobile capabilities (19 per cent), improving digital marketing (34 per cent) and integrating channels (36 per cent).

A much higher percentage of insurers are planning or considering investments for the near future, with 62 per cent for mobile technologies, 49 per cent for digital marketing and 44 per cent for integrating channels, the survey noted.

The survey included respondents from the US, Europe, Africa and the Asia-Pacific region including India.

"Increasing investment in mobile capabilities -- to take advantage of the growing use of smart phones -- and in digital marketing, to create new opportunities to influence customer choice, is necessary, but not sufficient in today's environment," Accenture global managing director (Insurance practice) Serge Callet said.

"The challenge facing insurers is to develop a distribution strategy that capitalizes on the strengths of each respective channel and allow them to match the right customers with the right products and services, at the right price through the right channels," Callet added.

Insurers are also likely to increasingly tailor their marketing strategy to specific customer segments.

The survey revealed that more than one-quarter (26 per cent) of insurers said they would customise their products, promotions, channels, services and pricing strategies to specific customer segments in the next three years.

At present, only 14 per cent of insurers currently tailor all of these activities by customer segment.

The emergence of new technologies was the most widely cited factor by 85 per cent of the insurers surveyed for making decisions to invest in distribution over the next three years.

But, it is closely followed by changes in customer needs and attitudes (84 per cent), new regulations (81 per cent) and increasing importance of advice in distribution of insurance products (also 81 per cent), the survey found.