Insurance educator Bill Wilson has now written two articles challenging the insurance industry about why it makes fun of its customers’ suffering and disasters. In What’s So Funny? and, Again I Ask, What’s So Funny? Wilson challenges his industry:
Our industry exists to assist individuals, families, and organizations in identifying and insuring their loss exposures in order to minimize the chance of serious or catastrophic financial loss and the emotional toll that entails. What’s funny about that?
I would suggest the answer is: Nothing. The point is that executives of major insurance companies find that “funny” and “cheap” sell a lot more policies. People do not like to think of disasters happening to them. Thinking about insurance and insurance needs is hard work. Most consumers do not understand that “cheap” insurance exists because it is not the same as insurance products and services from other companies charging greater premiums.
How does “fun and cheap” compare to “serious, hard, and more costly in the short term?” I learned a long time ago that most of my classmates would rather play than study, work, and save for graduate school.
Insurance Business discussed this topic: Why Insurance Adverts Are Going For Laughs, and quoted from a marketing executive overseeing Allstate’s “Mayhem” ad campaign:
‘Geico (sic) came out and said that people don’t care that much about insurance; insurance is a burden category, so let’s lighten the burden,’ said Britt Nolan, the chief creative officer at Leo Burnett USA and one of the creators of Allstate’s Mayhem character. ‘Let’s make it simple and cheap, and let’s make the brand feel likable and fun.’
‘I think they showed everyone else that there was another instrument available to be played,’ Nolan added. ‘And now all these other brands are trying to find their own unique voice in comedy.’
A Progressive Insurance marketing executive noted the following:
‘We use humor to forge a bond with our customers,’ stated Progressive leader of marketing strategy Cat Kolodij.
Insurance agents play a very crucial role in our society. They sell serious products and have serious discussions with people about the perils most of us hate to think about happening personally and to our businesses. Yet, I recently noted that one of the insurance industry’s significant consulting firms is predicting that insurance agents may be replaced by artificial intelligence in Will Insurance Agents Be Replaced By Computerized Artificial Intelligence. Getting consumer leads through gimmicky advertisements followed by fluff risk analysis seems to be the trend despite valid criticisms.
My observation is that much of the property and casualty industry is in a race to the bottom, trying to save claims dollars through lowered underwriting of coverages and various claims programs designed to reduce severity of claims payments regardless of the product sold. There is nothing funny about that either.
Thought For The Day
The best preparation for the future is the present well seen to, and the last duty done.