Economic growth and the development of new marketing channels have together created near-perfect conditions for the expansion of the insurance market across Asia-Pacific, a fact that has not escaped the attention of multinational insurers or local providers.
The 2011 Asia-Pacific insurance outlook published by Ernst & Young pointed out the highly diverse super-region requires insurance companies develop distribution strategies that take into account consumer buying patterns and demographic trends within each country.
The region’s remarkable growth rate perhaps explains why many multinational insurers are either preparing plans for further investment, or are in the thick of implementing them. The life insurance market in particular has tremendous growth potential, says Kwek Perroy Li Choo, chief marketing officer at AXA Life Insurance Singapore. Because of a general lack of state welfare schemes it is no secret that insurance companies have got their sights set on Asia. “Penetration rates are still low across most of Asia. Growth will come with an expansion of middle classes in emerging countries such as Indonesia, Thailand and China,” she adds.
Kwek says AXA aims to double its business in the region over the next few years, and the company is already exploring the best ways to reach out to their target customers — for example, out-of-home for tactical campaigns: “We believe that our consumers are always on the move and one of the better approaches is to increase brand awareness through the use of moving or billboard advertisements,” Kwek explains.
AXA is also exploring digital advertising as consumers in the region are more digitally-savvy and increasingly receptive to digital engagement. To ensure maximum impact, Kwek says that every AXA entity is actively “encouraged to develop and implement marketing strategies that have the potential to go global.”
In one of Asia’s biggest markets, research from CTR reveals that China’s Ping An Insurance and China Pacific Insurance were the largest spenders on traditional media advertising among Chinese insurance companies during the first half of this year. Both spent in excess of 70 per cent more than during the same period in 2010 and between them accounted for nearly half of all insurance adspend.
While TV and newspapers remain the dominant media for Ping An Insurance, interestingly radio has accounted for more than one fifth of its advertising activity this year. In contrast, China Pacific Insurance increased its newspaper spend by 340 per cent year-on-year.
According to John Kyriakou, managing director of Leo Burnett Singapore, there has been a shift towards TV across Asia, “although there is growing interest in social media to establish and maintain an engagement with customers.”
SK Biswas, regional director MPG Indochina, says telemarketing, online, mobile, electronic direct marketing and ATMs hold the key to connecting with consumers. “We expect real innovation in these channels. Cigna has already launched successful direct response TV campaigns in South Korea, New Zealand and Taiwan and Indian insurance companies such as Bajaj Allianz have already implemented social media platforms.”
Consumers usually see insurance as a functional requirement and only of real interest when they have a specific need.
“Consequently, creative communications help a brand stick in a consumer’s mind and give the brand an opportunity to explain its benefits when the consumer is ready to purchase,” says Stuart Green, CEO Interbrand Asia-Pacific. “AIA and Prudential have done a good job in the region with clearer market positioning, distinctive visual identities and high visibility campaigns.”
As Asia’s number one insurance brand, AIA is taking a different marketing approach from the segment’s usually product-driven campaigns. While focusing on customer care and value for employees and agents, notably ‘The power of we’ campaign also focuses on value for the company’s marketing and distribution partners and channels.
The move highlights the fact the Asia-Pacific insurance industry faces a creative challenge. There is a need to strike a balance between security and innovation. Today’s customers need the reassurance of a well-established insurance provider, but are also looking for bright ideas.
Other features in the 2011 Financial Report include:
Domestic banks have more local appeal
Insurance industry: bright prospects
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