What Is Direct Marketing in the Insurance Sector?

Direct marketing for the insurance sector is a marketing method used to generate leads for insurance agents. According to the Direct Marketing Association, insurance marketers spent $6.81 billion on direct marketing in 2008, the last year for which figures are available from the DMA. Given the plethora of marketing messages bombarding businesses and consumers, direct marketing offers insurance agents a personal, quantifiable method of generating leads.

Types of Direct Marketing

Insurance brokers and companies use many direct marketing methods to find new customers. Direct mail postcards and letters are two types of traditional direct mail that are popular for insurance marketing. Many companies purchase local lists and send lead-generation mailers out for their insurance brokers. Other types of direct marketing used by the insurance sector include telemarketing, radio, television and digital advertising.

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Benefits

There are several benefits of using direct marketing to sell insurance services. Direct marketing is easily measured, which makes it easy for insurance agents and companies to assess how well a campaign performs for them. Direct mail marketing activities can be hidden from competitors, a great benefit in the highly competitive insurance industry where companies may battle for new customers.