P & C

2. A Mature Industry
 The auto insurance business is part of the
larger property and casualty (P&C)
insurance industry.
 The P&C insurance industry is worth
about $471 billion, experiencing a 2%
decline in 2010.
 In the past year, about $40 billion worth of
auto insurance premiums were
purchased.
 Auto insurance companies are
structured similarly to other
property and casualty coverage
providers. There are two
primary types: mutual and
private.

3. Safe Consumers
 About 40% of the entire P&C insurance
industry is for personal policies (as
opposed to commercial policies).
 246 million cars are owned by Americans,
and every car needs an auto insurance
policy to go with it.
 Each state has its own auto
insurance requirements that
stipulate minimum coverage
amounts for bodily injury and
property damage.

4. Safe Consumers
 Consumers age 18 to 34 present an
opportunity for auto insurance carriers to
forge relationships with lifetime
customers.
 These younger consumers are more likely
to switch carriers for a savings of less
than $300.
 Suburban and rural consumers are more
likely to own cars than Americans living in
metropolitan centers.
 Of all $1,500+ customers:
54.9% are female
27.0% are age 45-54 ;
63.0% have 3+ children

5. Leading Brokers & Underwriters
 A.M. Best’s top 10 auto insurance
companies with regards to customer
satisfaction are: Erie Insurance, The
Hartford, State Farm, Liberty Mutual,
American Family, GEICO, Nationwide,
MetLife, and Automobile Club Group.
 Some insurance companies allow
consumers to purchase directly, while
others require that drivers purchase
policies through an agent or broker.
 39% of insurance shoppers prefer
working with a local agent. 32%
prefer working with carriers
directly.

6. Shopping Around
 18% of Americans who hold auto
insurance are willing to change carriers to
save money
 44% check rates periodically to make sure
they’re not missing out on good deals.
 38% of insured Americans say that they
are most likely to renew their current
policy.
 26.5% of current auto insurance
customers have shopped for
auto policies in the past year.
 60.2% of customers that changed
carriers did so because they
found a better rate quote.

7. Trends that Drive Sales
 Price and value are the top two factors
consumers say influence their auto insurance
selection.
 Reliability and service (including customer
service, claims processing, relationship
history, and ease of doing business) follow
closely.
 The agent relationship is more important
to customers who choose captive
agents (getting a 4.0 out of 5.0
on the scale of importance).
 Brand was the least important
factor for all auto insurance
consumers.

8. The Future of the Industry
 Online auto insurance shopping is likely
to increase, surpassing in-person and
telephone shopping.
 Today’s consumers are incredibly price-
sensitive, so companies that focus on
value and price messages will succeed
throughout the recession.

9. Advertising Strategies
 Many auto insurance companies have
begun to offer a standard safe-driving
discounts and credits for each year they
are accident free. This strategy appeals
to safe drivers who feel they deserve
special benefits. It is also a great feature
to advertise.

10. Advertising Strategies
 Testimonials are great ways to highlight
an auto insurance carrier or agency’s
level of service and approachability.
They are also a great addition to a
company’s website, which is more
important than ever. Carriers and
agencies that succeed will have easy,
informative websites and fast turnaround
times for emailed quotes.

11. Advertising Strategies
 The world of auto insurance can be
confusing. Having a website and agents
that clarify the process and answer
questions makes a carrier/brokerage a
valuable resource to clients. Consider
providing prospective customers with a
glossary and an overview of how
policies work and what options they can
select to customize their perfect policy.

12. Advertising Service’s
Digital Marketing-
Internet Banners
Facebook & Twitter
Mobile News
Mobile Websites & App Development
Digital Sports & Sponsorships
Television Marketing-
Key Day parts for Industry.
Cause marketing opportunities.
Sports & branding opportunities.