Insurers look for new ways to save customers a bundle

July 15th, 2021 | Maegan Haugh

While savings have often been a go-to strategy in bundle promotions, insurers considered new ways to reach their intended audience, but there’s still room to grow.

Many insurers put bundles on the back burner

Bundle promotions typically made up less than 25% of insurers’ ad budget, with many focused on standalone products. However, GEICO, Desjardins, and Sonnet increased bundled promotions year-over-year, allocating greater spend to emphasize home and auto bundles.

A quick, easy, and targeted approach

Some insurers shifted their messaging strategies in 2021, looking to showcase just how easy it was for customers to bundle their policies. Other insurers went with a targeted approach by offering greater discounts in location-specific ads and reaching out to existing customers to remind them of the money they could be saving.

Trends to watch: An evolved bundle

Via owned social posts, Nationwide introduced new pet insurance bundles as well as its Work from Home bundle created to meet consumers’ ever-evolving lifestyles. Meanwhile, Metromile and Hippo teamed up to offer a pay-per-mile and homeowners insurance bundle at a discounted rate.

Notable shifts

GEICO launched new video ads in May that focused on the ease of bundling home and auto. Notably, the insurer spent most on ign.com—an American video game and entertainment media website—and was the top-spender overall YTD on the domain ($4.7M).

https://www.youtube.com/watch?v=HGNN5AtWob4

GEICO also extended its simplicity message into new display ads, shifting from its usual focus on savings.

While Sonnet spent significantly more on display, the insurer shifted its Facebook messaging to call out its quick quote process. In 2020, Sonnet prioritized Facebook messaging that showcased “a new era in insurance.” Home and auto ads highlighted an entirely digital process that was customized and easy. Sonnet shifted its messaging in 2021 to instead focus on swift and instant insurance. The insurer promised a policy in minutes when customers got a quote online.

A targeted approach

Brands leveraged high-traffic sites like YouTube and Amazon to drive bundle messaging and introduced spend to uncharted territory on Twitch.

GEICO and Sonnet took a location-specific route in Facebook ads, targeting specific areas with extra savings.

Some insurers took the opportunity to tap into life changes and retargeting efforts. Allstate looked to entice movers with a 25% bundle discount on home and auto. Meanwhile, American Family Insurance retargeted customers on Facebook with a 28% bundle discount.

Trends to watch

In owned social posts, Nationwide introduced pet bundles and work from home insurance plans. Nationwide introduced a multi-product discount for customers who bundle pet insurance with their home, renters, or condo policies. The insurer also introduced the Work from Home bundle, which includes homeowners/renters, usage-based auto insurance, and identity theft protection. As COVID-19 continues to shift the way in which consumers live and work, Nationwide looked to evolve protection to fit consumers’ lifestyles.

Insurtechs Metromile and Hippo partnered up to provide a new kind of home and auto bundle. According to its press release, Metromile stated that more consumers were choosing insurers based on customer experience and services and that they also rated digital capabilities highest according to the 2020 J.D. Power auto and homeowners insurance studies. The insurtech took a blended approach through this new partnership by offering its customers the best technology experience while also giving them the best possible coverage.

What we think

As younger generations continue to carve their own paths, insurers should adapt their traditional solutions to meet untraditional lifestyles. According to Mintel research on property and casualty insurance, Gen Z and Millennial consumers are less likely to own multiple types of insurance with one company. Meanwhile, life stage affects a number of consumer purchases, including P&C insurance. Gen Z and Millennial adults are less likely to own a vehicle or home, so it stands to reason that they are less likely to have an auto or homeowners insurance policy.

Insurers should reconsider the products that resonate with consumers right now, like renters and pet insurance, and look to reach them with targeted messaging throughout their life stages. If upcoming generations are taking unconventional routes, insurers should evolve offerings to meet those needs and provide solutions that grow with consumers rather than force them to seek traditional bundles.

Maegan Haugh

Maegan Haugh

Maegan Haugh is an Associate Research Analyst at Comperemedia, specializing in Omni reporting across Comperemedia’s various sectors. Also delivering cross-sector insights through custom and syndicated reporting.