Introduction
When it comes to industries struggling with negative public perceptions, insurance and banking often top the list. From the image of the “trickster” insurance agent who avoids paying claims to the stories of bankers benefiting from bad investments, these sectors face deep-rooted stereotypes in the minds of consumers. These preconceived notions can create challenges when it comes to communication and marketing. However, not all perceptions are negative—some institutions have managed to redefine their relationships with customers through genuine and customer-centered communication.
In this article, we will explore how insurance companies can understand their consumers, address negative perceptions, and create effective communication strategies that resonate with customers’ needs and life cycles.
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Understanding Consumer Perceptions of Insurance Companies
The first step in overcoming negative perceptions is understanding them. Consumers often have deeply ingrained beliefs about insurance, influenced by past experiences, media portrayals, or societal stereotypes. For instance, many believe that insurers will do everything in their power to avoid paying out claims, which creates an inherent distrust.
To craft effective communication, insurance companies need to delve into the representations and perceptions that customers hold about insurers. This involves understanding the daily challenges faced by consumers and how insurance companies can offer solutions that speak directly to these concerns.
Quote from Luc Basier, Strategic Planner at Young & Rubicam: “If you have an idea of what people have in their heads, you have a better chance of figuring out how to talk to them.”
Talking to the Consumer at Different Life Stages
One key element in selling insurance services is recognizing that customer needs evolve over time, depending on the life stage they are in. Whether they are young professionals, families, or retirees, their concerns, motivations, and priorities will shift, and insurance companies must tailor their messaging accordingly.
According to Gilles Aeby of Numéro 10 (Berne): “At a given time, as the sender of the message, you need to make sure you’re connecting with a pregnant woman, a career-driven individual, a stay-at-home parent, someone thinking about leisure investments, someone acquiring objects on lease, or someone buying a home. The life cycle exposes different faces, different facets, different challenges. An insurance company that truly understands its consumers is the one that has successfully understood these life cycles.”
Marketing Strategy: Insurance companies should create segmented communication strategies that target consumers at various life stages, highlighting solutions that address the specific concerns of each group. For instance, a young professional may be more concerned with disability insurance, while a retiree may prioritize long-term care insurance.
Overcoming Preconceived Notions with Honest Communication
Given the deep-rooted skepticism many consumers have toward insurance, honest and transparent communication is crucial. Institutions like BNP Paribas, with their slogan “Let’s talk real,” have taken a bold approach by acknowledging the disconnect between the public and financial institutions and promising to address consumer realities head-on.
When creating communication campaigns, insurance companies need to focus on both rational and emotional elements to differentiate themselves from the competition. A campaign that shows empathy toward consumer frustrations, while offering concrete solutions, can help reshape the company’s image and build trust.
Example: A company launching a new web-based service or product can use a demonstration approach, focusing on how the service resolves a real problem for the consumer. By doing so, the company showcases its value while also aligning its communication with its brand values and positioning itself differently from its competitors.
Building Trust Through Brand Image and Values
Trust is the foundation of any successful relationship between a consumer and an insurance provider. To build this trust, companies need to ensure that their brand image reflects honesty, reliability, and customer-centric values. For example, La Bâloise and CSS differentiate themselves through their commitment to customer satisfaction and security, positioning themselves as reliable partners in times of need.
Marketing Strategy: When launching a new product or service, insurance companies should focus on showcasing their values—whether it’s transparency, reliability, or a customer-first approach. It’s essential to demonstrate how the company has the consumer’s best interests at heart, rather than relying on vague promises or overly institutional language.
Quote from Natalie Rastoin, President of Ogilvy France: “These are sectors where there is significant segmentation of motivations, offering multiple possibilities in communication mechanisms—brand universes, comparisons, problem/solution approaches, satisfaction showcases…”
Conclusion
Selling insurance services requires a deep understanding of consumer perceptions, life cycles, and motivations. By addressing the preconceived notions consumers hold and crafting honest, targeted communication, insurance companies can reshape their image and build lasting relationships based on trust and reliability. The key to success lies in speaking directly to the consumer’s real-life challenges, providing tailored solutions, and consistently showcasing the company’s values and transparency.