How Marketing Automation Software is Changing Insurance Marketing

The US insurance industry is changing, and thanks to shifts in consumer expectations, the regulatory environment, and other factors, insurance marketing is now primarily a digital affair. Among the most significant changes is the increasing use of marketing automation software. Using a marketing automation tool enables insurers to improve customer engagement, achieve greater operational efficiency, manage marketing projects, and increase overall growth within a crowded market.

The History and Evolution of Insurance Marketing 

Large insurance companies developed more sophisticated marketing strategies in the 19th and 20th centuries. The industry's expansion also coincided with critical methodological advances in actuarial science. Between the 1930s and 1960s, mass marketing occurred via television and radio, and insurance marketing emphasized branding and trust: companies used slogans and mascots to try to stand out in a crowded marketplace where many consumers had no previous experience with the products.  

The late 20th century brought another series of innovations, with the advent of the internet, a seismic shift that instantly turned the industry upside down. The 21st century is again an era of revolution in insurance marketing as digital natives age into their insurance-buying years. This shift, brought about by the internet, is not just a change in technology, but a change in the way we, as consumers, interact with the insurance industry. Fewer people are getting life insurance through a broker than ever before, and most consumers will research their own options online before buying. Insurers now predict that around 80 percent of their business will come from digital marketing efforts, with automated, data-based targeting, online advertising, and even artificial-intelligence-driven direct engagement becoming the norm. 
 

The traditional way of carrying out insurance marketing activities was manual and, therefore, much more time-consuming. Postal mail, cold calling, and meetings were effective up to a point but resource-intensive and expensive. With consumers increasingly expecting hyper-personalized solutions from their insurance service providers, the old style of marketing just wasn’t cutting it anymore. 

The emergence of digital marketing has become part of the everyday insurance marketing landscape. But even so, this emergence didn’t automatically lead to marketing becoming ‘easy’ for all involved. Many seemingly automated digital processes still require human resources behind the scenes, from composing messages and collecting customer data to tracking the performance of marketing campaigns.

Given the challenges of traditional and digital marketing in the insurance sector, there's a clear need for a more efficient and effective solution. This is where marketing automation software steps in, offering not just greater efficiency, but also significantly improved effectiveness in marketing projects.  

So What is Marketing Automation? 

Marketing automation uses a tool such as Aproove to carry out previously manual marketing and repeated tasks more effectively and at scale.  

For the insurance industry, marketing workflow automation offers several key advantages: 

Marketing automation software is a game-changer in the insurance industry, allowing companies to send personalized messages at scale. Whether it's life insurance, health insurance, or home insurance, this software ensures that each customer receives a message tailored to their needs, behavior, or preferences, making them feel truly understood. 
 

Improved customer retention: Trust for insurers is everything; staying in touch with customers regularly and personally is vital to maintaining customer relationships. A marketing automation tool can help when it comes to the review and approval of assets that keep customers informed, as well as engaged with regular, proper, relevant communications (for example, reminders of renewal dates, details of new products, and other products available that the customer may be interested in). 
 

Cost Efficiency: Automating repetitive tasks can dramatically reduce operational costs. An automated system can save on manual effort, freeing up time for your team to focus on more complex tasks. Given that margins are thin in most marketplaces and competition is fierce, this is a crucial area of cost saving that can lead to increased productivity and efficiency.  

The Impact on Customer Experience 

Marketing automation software is a game-changer in the insurance industry, addressing long-standing issues such as low response times, impersonal communication, and complex processes. It enables insurers to offer a much slicker, responsive, and personalized experience, and react quickly to emerging industry trends. 
 

Implementing marketing workflow automation enables engagement beyond a single engagement point across the customer lifecycle; rather than reaching out just at renewal time, insurers can remain engaged by producing regular content, updates, and reminders, helping to retain customers while also increasing the chances of selling additional products.  

Overcoming Challenges 

The benefits of using a marketing automation tool for insurance marketing are clear, but it’s not without challenges. One such challenge, ensuring compliance, is of utmost importance within this sector. Insurance companies manage a huge amount of marketing collateral and forms, which require constant creation and updating. The need to produce materials in large quantities, account for state-specific variations, and ensure strict legal compliance turns this process into a complex juggling act. With many projects running simultaneously, even a small error in the published content can have serious consequences, leading to costly legal and financial ramifications.

Secondly, implementing marketing automation software means a cultural change across firms in the insurance industry. Moving from their traditional go-to-market strategies to a more tech-based approach demands a different mindset, skillsets, and processes. This requires some staff retraining and the creation of a working environment that encourages experimentation with marketing processes.  

The Future of Insurance Marketing 

As marketing automation tools grow in sophistication, they are likely to be deployed broadly within the insurance sector. The future of insurance marketing in the US is undoubtedly digital, and marketing automation is what insurance companies will need to succeed. Marketing workflow automation will enable insurance companies to personalize communications, better manage their marketing collateral, and become more efficient!