Pet insurance market must mind the generation gap
A significant generation gap has been reveled in a YouGov pet insurance survey, leading technologist Aquarium Software to advocate further marketing segmentation by pet insurers. Technology has a major role to play in addressing how best to pitch insurance to particular age groups and demographics, says Aquarium, after its research unearthed some stark differences in attitudes between British pet owners of different ages.
22 percent of 18-24 year-olds say an insurer remembering their pet’s birthday (and sending a gift!) would most impress them (against an eight percent national average), contrasted with just two percent of those aged 55+ who say the same thing. “Traditional thinking says cash strapped kids care most about money, but the 18-24 bracket seem to be persuaded much more by the ‘soft sell’ when it comes to pet insurance,” explained Aquarium Software Director, Mark Colonnese. “This group also rates accurate, timely information as the most important thing an insurer can do, which is the highest response of any group, at 15 percent,” added Mark.
The cynics’ award goes to the 45-54 year-old cohort, 23 percent of them saying nothing would impress them about a pet insurance provider. Likes and preferences can deliver cheaper policies based on what matters most to consumers, but there is a perceived dark side to such customer engagement data. Data mining has been demonised by many, particularly in relation to social media, yet the consumer benefits can be overwhelming.
“Gone are the days of generic data; algorithms can now be tailored to small tribal groups or even individuals. This can certainly be positive when products are tailored specifically to your personal preferences. Yet, pet and other insurance sectors must factor in the risk vs reward equation attached to the use of personal data,” said Colonnese. “These issues are about to become even more pressing with the advent of GDPR; companies will be forced to use data more responsibly than ever,” concluded Mark.