Flo, Mayhem, and Geckos, oh my! No industry is more competitive than the insurance business. Couple that with – no industry is more misunderstood by consumers – and insurance marketers have their hands full.

Be it health, home, auto, or life insurance, everyday people struggle to understand complex terms and conditions of their policies. Without clear explanations, policyholders often don’t have the foggiest idea of what is covered, what exclusions apply, or how additional benefits work. The knowledge gap has every insurer’s customer base churning with turnover, fueled by unpleasant surprises when it comes time to make a claim.

Hard sell is hardly the answer.

Traditional persuasion-heavy insurance marketing is not the answer to this problem. Hard sell strategies that focus on pushing products can easily turn prospects into skeptics. Just think about Medicare advertising for a moment. I know…you’d rather not, but doesn’t it all sound too good to be true? And most of it sounds alike.

Confusion brought about by complex language, small print, and vague messaging weakens trust, leading to hesitation or decision gridlock. What people need more than ever along their insurance buyer journey is clarity.

This is why education-first marketing has emerged as a major trend in insurance marketing. By shifting from a product push strategy to an educational pull strategy, consumers are empowered to make better informed decisions that greatly reduce the likelihood of disputes. This improves customer retention and – bonus – over time, policyholders are more likely to add more benefits or upgrade their coverage as their needs evolve, further strengthening their loyalty.

Educational Messaging Tips:

Interested in becoming an education-first insurer? Here are a few simple guidelines to follow:

Keep it simple: Information overload is a quick turn off. Explain terms and conditions of policies in simple, clear and concise language to neutralize the intimidation factor.

Focus on financial literacy: Don’t gloss over terms like “deductible”, “premium” and “liability coverage.” Provide coverage explainers and terminology guides.

Lead with the human element: Yes, policy terms and coverage benefits are important. But what prospective customers really want to know is how a policy fits their life.

Be transparent: Know your customer pain points and address them head on. Speak to policy limitations and exclusions, waiting periods, and how to select the right benefits. Scenario-based examples and claims process walkthroughs are good approaches.

Lean into the facts of life: By providing a clear understanding of the risks people face in daily life and how insurance can mitigate them, education helps enhance the value of your offering

Where insurance shoppers look before they buy.

Once you get your message right, it’s time to deliver it. The good news is, insurance shoppers are full of questions, so they’re out there actively researching brands, coverages, and terminology. Here are several places where you can meet and greet them.

Website as a Hubsite: Populate your company website with educational blogs, webinars, and e-books that address consumer pain points. Attract prospects doing research by showcasing glossaries of terms, checklists, and guides on how to reduce premiums.

Webinars/Q&A: Hosting virtual sessions allows consumers to get answers to their questions in real time and is a great strategy for generating leads.

Content Marketing: Use blog posts, videos, and social media to explain how to choose the right coverage based on common customer needs.

Interactive Tools: Calculators, quizzes, and FAQs allow insurance shoppers to explore their options in an engaging way and helps them appreciate the value of protection.

Post-Sale Contacts: Got new customers? Newsletters and annual insurance reviews help them take advantage of new products, discounts, or coverage updates in the years ahead.

Email Marketing: Send personalized messages that address specific needs or alert them of enrollment deadlines.

Live Events: Host in-person or virtual sessions that focus on transitional moments in life like first-time homeownership or estate planning.

In Conclusion

Every insurance provider should view educational marketing as a priority. By investing in educational content and initiatives, well-informed consumers are more likely to seek out and purchase the right insurance products. This leads to happier policyholders who often become advocates who share their positive experience with others. And by reducing turnover, educational marketing is a viable strategy that benefits both the insurer and the insured.

Adcom has specialized in insurance marketing for more than 30 years. For help building a smarter insurance content or media strategy, visit https://engageadcom.com/contact.