Auto insurers' spending on marketing has increased substantially over the past 10 years, but a report by the consulting firm McKinsey questions whether the industry is spending too much to attract too few customers.
In a report released yesterday titled, “Beyond Price: The Rise of Customer-Centric Marketing in Insurance,” the consulting group says that over the past 10 years, the marketing spend by U.S. personal-lines insurers rose from $1.7 billion to $5.9 billion in 2011.
All of that spending, the report says, is targeted at just 30 percent of auto-insurance buyers who are most price-sensitive and least loyal.
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