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AIAIO: Our Blog

AIAIO: Our Blog

The pulse and reviews of Alexander Interactive

Archive for the ‘Insurance’ Category

Our Favorite Instances of Insurance Humanizing Their Brands

Insurance falls under one of those categories of conversation that many people avoid as much as possible. It’s the decade old toy in the corner that only gets attention when everything else is taken. It’s the week old lasagna sitting in the fridge that only gets eaten when there’s nothing else left. Nevertheless, despite these negative stigmas surrounding the insurance industry, some companies have found a way to sound endearing and make us realize that it’s not so bad after all. With unique messages of hope, help, and harmony, the following three companies have found a way to hit the mark with consumers.

State Farm – “Like a good neighbor, State Farm is there”

You probably just sang that phrase to the classic State Farm tune in your head as you read it, right? Well, that’s kind of the point. State Farm is best known for feeling more like a friend than a foe compared to its more corporate-feeling competitors. State Farm forgoes typical business jargon used by most insurance companies and instead emphasizes strong community ties and sincere customer service in a clear, simple message: we’re here to help. By reiterating this point of being a good neighbor, State Farm is able to foster a (seemingly) more sincere relationship with its consumers.

Nationwide – “Nationwide is on your side” 

Another jingle! This half a century old slogan stands the test of time for a reason: it’s authentic. Everybody wants somebody on their side. Nationwide took that exact desire and spun it to work for their unique insurance model. And they made it even more contemporary by bringing in superstar quarterback Peyton Manning to do the singing in their latest ad campaign. In a recent interview with The New York Times, Adam Taylor, president of Ogilvy & Mather Advertising New York (Nationwide’s ad partner), stated, “In the case of Nationwide, I think it’s been a competitive business advantage to stay true to the line.” Authenticity really does go a long way. Having one of the most recognizable NFL players sing it while folding laundry doesn’t hurt either.

GEICO – The GEICO gecko

Though not necessary one message, the GEICO gecko drops some serious knowledge every time he appears in an advertisement. Deemed the first ever “spokescreature,” numerous companies have followed suit with their own creatures in search of similar positive results. How does GEICO do it? They stay unique. After a period of time, a talking gecko doesn’t appear all that unique anymore. But give him a car and a sense of humor and you’ve got yourself an ad that works. GEICO continues to elevate in terms of unusual and extraordinary content with it’s gecko – keeping consumers attached to the overall message: a 15-minute call could save you 15% or more on car insurance.

Honorable Mentions

Insurance

The Top Six Insurance Start-Ups To Watch

Legacy industries like insurance can seem complicated and inpentrable. This is no longer the case. More insurance start-ups than ever are popping up – and finding both funds and users – within the space to give consumers more options than ever for every type of insurance experience or need one might have. Here are six of our favorites that are not afraid to shake things up.

 

Company: FitSense

FitSense (Insurance Start-Up) Logo

Year Founded: 2015

Amount of Funding Raised So Far: $15k

Top Investors: StartupBootcamp InsurTech London

About FitSense: Fitsense is a data analytics platform working with insurance companies to personalize life and health insurance for anyone with a smartphone or wearable device.

Why FitSense Made Our List: Fitsense was created to help lower insurance costs and improve risk ratings. By taking the data from a user’s wearable (like Fitbit or Jawbone), insurance providers can make more accurate risk preditions based on actual data which will reward users who live healthier lifestyles with lower insurances costs and premiums.

 

Company: Lemonade

Lemonade (Insurance Start-Up) Logo

Year Founded: 2015

Amount of Funding Raised So Far: $13 million

Top Investors: Aleph, Sequoia Capital

About Lemonade: Lemonade is set to become the world’s major peer-to-peer P&C insurance provider.

Why Lemonade Made Our List: Lemonade is built on the idea that today’s insurance industry is “antagonistic” and “annoying” and the company aims to fix that. Lemonade is also stacking their team with more than just insurance industry pros: they hired renowned behavioral scientist Dan Ariely to help finesse their customer-focused, back-to-the-basics model.

 

Company: Melody Health Insurance (dba Canopy Health Insurance)

Melody (Insurance Start-Up) Logo

Year Founded: 2015

Amount of Funding Raised So Far: $3.8 million

Top Investors: Eduardo Cruz, CEO of ARS Humano

About Melody: Melody Health Insurance, the startup health insurer that will provide value-priced health insurance to individual consumers throughout the U.S.

Why Melody Made Our List: Melody seeks to give consumers more power in purchasing their own plans at budget-friendly prices. They aim to be able to give bigger discounts on procedures by having a smaller group of core providers that are close to where their customers live and work.

 

Company: Oscar

Logo (Insurance Start-Up) Logo

Year Founded: 2013

Amount of Funding Raised So Far: $727.5 million

Top Investors: Fidelity Investments, Google Captial

About Oscar: Oscar is a health insurance company that employs technology, design, and data to humanize health care.

Why Oscar Made Our List: Oscar isn’t the newest player in the book but they are one that has raised significant funding and has found successful growth. They aim to bring affordable premiums to their customers while also providing a pleasant user experience. They have an app that enables users to correspond directly with their doctors and customer services reps are always available. While their business model may not be significantly different, that focus on user experience in an industry that has a reputation for being challenging makes them notable. Oscar also offers its customers incentives like cash for flu shots and money back for meeting goals specific to its partner wearable (the Misfit) that encourage users to live healthier lifestyles.

 

Company: Sure.

Sure. (Insurance Start-Up) Logo

Year Founded: 2014

Amount of Funding Raised So Far: $2.6 million

Top Investors: ff Venture Capital, Fosun Kinzon Capital, Montage Ventures

About Sure.: Sure is an innovative app within personal insurance that enables travelers to purchase on demand policies up to the time of their flight takeoff.

Why Sure. Made Our List: Sure. gives air travellers peace of mind by providing life insurance for specific durations (the length of a flight). This focus on microduration is different than a general life insurance policy since it is only enacted during air travel. The app provides it’s users with policy cost in real time.

 

Company: Trov

Trov (Insurance Start-Up) Logo

Year Founded: 2012

Amount of Funding Raised So Far: $46.27 million

Top Investors: Oak HC/FT

About Trov: Trov is an on-demand insurance platform that lets users buy insurance for specific products, for a specific amount of time.

Why Trov Made Our List: Trov is a service unlike any other. It enables its users to choose which of their belongings to cover and for how long. It also allows users to file their claims through the app. Furthermore, the coverage granted and cost are extremely transparent and upfront.

 

Insurance

The Opportunity Insurers Have Targeting Millennial Consumers

There is no doubt about the importance of capturing the Millennial consumer. According to the US Census Bureau, there are 80 million people making up the millennial generation, or anyone born between 1980-2000. Look out, Baby Boomers! Millennials are officially the most populated generational group in the US EVER and how they go about making purchasing decisions is VERY different than any group before them. Why does this matter for insurance? Here are a few major reasons.

Millennial life looks VERY different than Baby Boomer life did at the same age. Pew Institute Research Center has estimated that only a quarter of Millennials are married – compared to nearly 60% of Baby Boomers at the same age. Furthermore, a 2016 Goldman Sachs study on Millennials spending and lifestyle habits demonstrated that Millennials are deferring major purchases like cars in favor of engaging with the sharing economy and utilizing ride-sharing options like ZipCar or Uber.

Opportunity for Insurers: Recognize that one size does NOT fit all. Millennials don’t do not live like their parents or grandparents. They are used to having a plethora of options to pick and choose from in order to get to the end product that is right for them and how they approach insurance is no different.

Purchasing style looks very different. Though Millennials face difficult economic barriers like massive student loans and a sluggish economy, they are still a powerhouse: AdAge estimates that Millennials will spend over $10 trillion dollars in their lifetime. How they spend this money is unique: they tend to be less brand-loyal and demand more transparency. An IBM Business Institute survey showed that comparison-shopping and personalized, user tailored experiences are extremely important pieces of the buyer process.

Opportunity for Insurers: Get comfortable with transparency. Build up social media and online presence with the purpose of more than just outright selling. By laying down the groundwork as an information provider, it helps create an open relationship that is appealing to Millennials. The Milliennial is not looking for an agent to reach out after this exchange, but to find information that will enable them to make their decisions.

Immediacy is Key. Millennials spend much of their time digitally – and it shows in every facet of their lives. For the generations that came before them, word of mouth was a powerful influencer when it came to making large purchases, including insurance. Previously, families would have a local agent and stick with that agent for decades. These agents would spend face time with their customers over time. Millennials prefer something more immediate and tend to prefer searching for information themselves than relying on advice of friends and family.

Opportunity for Insurers: Two words: prioritize digital. Not only do Millennials want to spend less time speaking on the phone or meeting in person, they want their answers RIGHTNOW. Upgrade any consumer facing websites to make sure the user experience is flawless, the design is appealing and fresh, and without a doubt, make sure it’s all mobile friendly. Goldman Sachs estimates that over 85% of Millennials own smart phones and do a majority of their browsing on alternative screens. If they can’t engage in those mediums, it’s a missed opportunity.

No doubt finding and maintaining success for insurers requires capturing Millennials as consumers. This means engaging with them on their terms and in the way that they like to be reached.

Insurance