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Auto insurance firms 'keep direct marketing steady'

Rachel Wheeler Archive
Auto insurance companies are continuing with direct mailing programmes despite the difficult economic climate, it has been revealed.

Studies carried out by market research group Mintel indicate around three billion auto insurance direct mail offers were delivered to mailboxes from the second quarter of 2008 to the first quarter of 2009, the same number as one year prior.

Daniel Hayes, vice president of insurance services for Mintel Comperemedia, commented that the recession has brought new challenges to the industry, such as rising repair costs and more uninsured motorists.

He added: "Insurers realize higher rates won’t bode well with cash-strapped consumers, so they’re using direct mail to communicate policy changes with drivers."

Earlier this week, studies by independent analyst Forrester Research found Spending on email direct marketing in the US is set to reach $2 billion by 2014.

The group added that the high return on investment offered by the strategy will continue to drive take up of the strategy.