Navigating affinity insurance trends in 2024 and beyond
The insurance industry is operating in a new world, and the affinity insurance market can’t rely on tried-and-true practices.
In a constantly evolving world, the insurance sector remains adaptable and resilient, facing various challenges such as inflation, rising interest rates, talent shortages, cyber threats, and climate change.
Recently, however, the affinity insurance market landscape has become increasingly intricate. This complexity is not solely due to the challenges that impact the broader insurance industry but also to the shifting nature of affiliations and consumer behavior, which is reshaping business in 2024 and beyond.
Traditionally, professional associations were the bedrock of affinity groups. But while numbers continue to increase, groups must work harder than ever before to continuously grow membership. Additionally, the modern purchasing environment, characterized by a surge in online research, has not only altered how people interact with businesses but has also opened the door to new players in the insurance sector.
Lest we forget, the gig economy has emerged as a significant player, spanning various industries and segments. The question then arises: What kind of partnership can be forged with gig workers when it comes to affinity marketing in insurance?
This changing landscape presents both challenges and opportunities. There are numerous trends to explore in the evolving dynamics of the affinity insurance market, its adaptation to contemporary affiliations, and strategies to navigate the complexities it presents.
Making sense of the implications
Many insurance marketing trends and subsequent challenges can partly be traced back to the expectations of younger generations. The insurance industry is operating in a new world, and those in the affinity insurance market can’t rely on tried-and-true practices to reach and engage with younger consumers. Technology has changed the way many people interact with the world and put into question how to establish trust or long-term relationships with a customer base. Plus, the interests, behaviors and aspirations of many Millennials and Gen Zers are much different than those of Baby Boomers or Gen Xers.
Those interests, behaviors and aspirations don’t always align with traditional affinity affiliations. They’ve also led to greater participation in the gig economy, spending more time online and using apps to transact with not just retailers but banks, providers, and charities. What’s more, many of the value propositions that businesses put forth don’t resonate with the same impact, changing the way many companies conduct business.
Finding opportunities
Every challenge, as they say, presents an opportunity. Based on the current trends, plenty of opportunities will be available. It’s all a matter of how to approach the situation and position the business to appeal to new affinity segments you’re exploring. While there’s no magic formula, a few strategies can help navigate what may feel like uncharted territories:
No. 1: Reevaluate industry segments.
No matter which affinity market you’re in, it’s crucial to adapt to changing circumstances and seek out new, untapped opportunities. The segments you’ve traditionally operated within may no longer resemble their former selves in terms of size, demographics, behaviors and other characteristics. In light of this transformation, it’s essential to ask some key questions:
- What does this transformation mean for your business?
- Do the products and services you currently offer still align with the evolving needs and preferences of these segments?
- Is it time to diversify your offerings to better cater to the changing landscape?
- Perhaps most importantly, should you consider venturing into entirely new markets and affinity segments to capitalize on emerging trends and opportunities?
By focusing on the evolution of the affinity landscape and the exploration of novel market opportunities, you can position your business for success in this ever-changing environment.
No. 2: Rethink affinity group marketing.
You know the benefits of affinity groups, but how you currently position the products and services offered may not resonate with those in your target segment.
Ask yourself:
- What matters most to these individuals?
- Why would they want a given product? How is that product better than what others offer?
- What’s the value for them?
The answers can often be found in the data. Use it. Then, experiment with how you message, making sure to personalize communication and speak to younger audiences.
No. 3: Explore digital solutions.
An increasing number of people do a great deal of online research, and they do it through a variety of channels. Does your business support new technology? Can you integrate your products and services into the new purchasing platforms? Are you leveraging digital solutions to streamline the purchase process, provide customer service, and communicate with consumers? How might you integrate new technology into your business?
As with anything involved in the affinity insurance market, it all starts with protecting people. That much hasn’t changed. What you offer will be “de-risking” their world. From there, your attention should turn to better ways to do business, better ways to connect with customers, and better ways to capitalize on the opportunities within the challenges facing this industry.
Ann Dieleman is the executive director at the Professional Insurance Marketing Association (PIMA). Based in the Kansas City metropolitan area, she is an active member of the insurtech and fintech community and has more than 25 years of C-suite global experience leading corporate growth initiatives, developing people, and building teams.
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