Study: Insurers Lack Urban Data

Study: Insurers Lack Urban Data

NU Online News Service, Oct. 9, 2:05 p.m. EDT?Insurers' lack of accurate database tools is costing them billions in urban area business, according to a recent private study.

The analysis of this data gap, by MetroEdge, a Chicago-based market research and consulting division of ShoreBank, is due to be presented at an Oct. 28-29 workshop on urban marketing in Chicago.

"Traditional segmentation tools that attempt to size the market and identify distinct customer preferences have limited use in urban markets," said Darice Wright, director of financial services for MetroEdge. "Most database services will have three to four market segments for urban markets, whereas companies really need at least a dozen segmentations to market efficiently."

According to Ms. Wright, traditional databases used by many financial services companies typically underestimate the market, partly due to underreported income that traditional database companies do not take into account.

"To adequately size this market you must ask the right questions in the right context," explained Ms. Wright. A recent MetroEdge analysis of low, middle and high income market segments showed that each segment makes about the same amount of annual consumer expenditures?about $1 trillion each.

MetroEdge said it is focused on providing specialized market intelligence on customer segmentation, product mix and delivery strategies for urban marketing initiatives. MetroEdge's clients include national retail companies, financial institutions, and various city and local governments.

The MetroEdge findings will be presented at the third national Urban Insurance Advantage workshop, organized by the Urban Insurance Partners Institute. The session is designed to provide life, personal lines and commercial lines insurers with the tools they need to compete successfully in the urban marketplace.

Urban markets leaders will cover current topics in marketing research, product and agent development, performance measurement, and building a corporate team. State regulators will discuss current urban market regulations.

More information on the institute, the workshop and UIPI programs can be seen at www.uipi.org.