5 marketing trends for auto insurance carriers in 2024

To put it mildly, 2023 was a rough year for the auto insurance industry – and arguably, one of the toughest years for their marketers.

While carriers slashed their advertising budgets to stay afloat, consumer sentiment was also dropping to an all-time low. Not only were they shopping and switching, but some were choosing to ditch auto insurance altogether.

As we embark on a new year, it’s clear auto insurance marketers will need to pivot to become more efficient and strategic in reaching their best customers. Here are five marketing trends that can help.

#1 Generative AI

Generative AI made a huge splash in 2023 as the latest and greatest tool, with “crafting first drafts” and “personalized marketing” cited as its top use cases for marketers.

Looking ahead, there’s a clear opportunity for all marketers to work smarter, not harder with generative AI. This is especially true for auto insurance marketers, whose departments may have been impacted by the recent industry-wide layoffs.

With some carriers starting out the year with less budget and resources available, generative AI is one way their marketers can improve team efficiency and campaign effectiveness in 2024.

#2 Hyper-personalization through data

The days of generic mass marketing are long gone as 71% of shoppers expect personalized marketing from brands. And it’s no longer good enough to reach consumers based on traditional segmentation like demographics. Marketers are now turning to hyper-personalization, which involves real-time data and predictive analytics, to connect with their best customers.

For auto insurance marketers, specifically, this can look like moving past targeting consumers based on their zip code or credit score, and instead reaching consumers based on their day-to-day driving behaviors and patterns.

Targeting audiences of drivers based on how, when, and where they drive, and even based on annual mileage driven or how likely they are to churn, gives auto insurers a way to reach their most valuable customers – i.e., those with the highest lifetime value (LTV).

#3 Smarter KPIs

Speaking of LTV, marketers are increasingly moving past superficial KPIs like impressions and clicks. While those metrics highlight “quick wins” to show the performance of a specific piece of collateral, they lack depth when it comes to tracking a campaign’s overall ROI.

In such a volatile time for the industry, auto insurance marketers may want to hop on this trend and adopt KPIs that align with business goals and prove their long-term value. One example is measuring LTV against customer acquisition costs – the LTV-to-CAC ratio. This can help determine whether the marketing spend was worth the investment in the long run by looking at how much a customer will eventually cost in estimated claims over their lifetime.

To improve the LTV-to-CAC ratio, auto insurance marketers can leverage driving behavior data to acquire the safest drivers since fewer accidents = lower claims frequency. Marketers who engage in this strategy are not only bringing in new business, but they’re saving the company money and boosting the bottom line by bringing in customers who ultimately cost the least.

#4 Data privacy and security

Data privacy and security are no longer a want, they are a necessary investment, with consumers demanding strong measures in place in exchange for their customer loyalty. In fact, 43% of consumers say they would switch from their preferred brand to their second-choice brand if the latter had better privacy practices.

As a mobility data and analytics company, Arity believes consumers should have control over their personal data. We recommend all brands be transparent and clear about what information is being collected, how it is being used, and if it is being shared.

Putting measures in place to keep data safe, secure, and private along with these open, honest disclosures are essential to gaining consumer trust and retaining loyal, life-long customers.

#5 “Pivotable” marketers

Since 2020, we’ve all been dodging curveballs – one crisis after another. And if we’ve learned anything these past few years, it’s that we’re living in “never normal” times that call for agile, pivotable individuals and teams.

While this applies to everyone, it’s especially true for auto insurance marketers who are dealing with arguably one of the most difficult periods in the industry’s history.

So, while teams are starting out the year by solidifying plans, it may be helpful to remain flexible as those plans are subject to change. Embrace these “never normal” times and be prepared to think outside the box and pivot when needed.

Arity Marketing Solutions

With the world’s largest driving behavior database for targeted marketing, Arity helps auto insurance marketers reach prospects meaningfully, optimize for true customer value, and boost marketing ROI.

Ready to reach your best customers in 2024? Connect with our team to learn how our marketing solutions can work for you!