The FINANCIAL -- With a newfound spending power and changing life stage needs, millennials are boosting insurance brands, according to new research from The Harris Poll’s 29th annual EquiTrend Study, which measures brand health over time.
Millennials’ increased interest in insurance brands results in a brand equity rating of 60 among millennials, compared to 55 among consumers overall. Harris Poll’s study reveals the strongest brands across the media, travel, financial, automotive, entertainment, retail, restaurant, technology, household and nonprofit industries based on consumer response.
“As the first group of millennials entered the workforce, insurance, specifically life and home, was often thought of as a luxury,” said Joan Sinopoli, vice president of brand solutions at The Harris Poll. “Now, a bit older and entering new life stages, millennials have more to protect and realize that employer-supplied insurance may not be enough. Leading insurance companies have taken note; several companies have adapted their marketing campaigns to cater to this important millennial customer.”
According to the Harris Poll study, millennials have a stronger affinity for life and property/casualty insurance companies compared to baby boomers and Generation X consumers. Millennials report a stronger emotional connection, shared values and fit to life insurance and property and casualty insurance companies and are more likely to trust, consider and recommend these insurance companies compared to other generations.
The EquiTrend Brand Equity Index is comprised of three factors - Familiarity, Quality and Purchase Consideration - that result in a brand equity rating for each brand. Brands ranking highest in equity receive the Harris Poll EquiTrend “Brand of the Year” award for their respective categories. This year, more than 100,000 U.S. consumers assessed more than 4,000 brands across more than 450 categories.
Guardian Life Insurance Makes its Brand of the Year Debut
According to Harris Poll’s analysis of life insurance brands, six brands¾Guardian (+9.5), USAA (+7.0), New York Life (+4.6), MetLife (+3.8), Allstate (+3.8) and AIG Direct Life (+3.3)¾saw significant brand equity increases while former Life Insurance Brand of the Year State Farm experienced an equity decline, making room for a new top brand. Since brand equity tends to resist movement, the equity gains and declines among insurance brands is notable.
“Guardian’s emergence as Life Insurance Brand of the Year is mainly driven by an above-the-pack Quality score and competitive Familiarity and Consideration ratings, “said Sinopoli. “Additionally, the brand is tracking favorably and at the top of the pack for positive momentum. A higher percentage of consumers also cite Guardian as irreplaceable—the only brand or one of few brands they prefer¾meaning that Guardians’ consumer allegiance is also strong. This is especially significant when, as a category, life insurance is not gaining brand momentum but simply maintaining the brand status quo.”
Other Key Findings
Additional insurance findings include:
Based on brand equity scores, health insurance brands¾Blue Cross and Blue Shield (#1), Health Net (#3) and Amerigroup (#4)¾take three positions among the top five insurance brands overall. AAA Home & Auto Insurance (#2) and Guardian Life Insurance (#5) complete the top five list.
Consumers struggle to identify property and casualty companies as a good fit or as companies that they have shared values with; however, there is a solid degree of trust with AAA and USAA.
Esurance shows strong positive momentum; however it falls near the bottom of property and casualty companies for overall equity and has lower emotional connection scores.
New York Life has the strongest equity and connection scores among millennials, followed by Northwestern Mutual.
State Farm is among the most familiar brands; USAA has strong quality positioning among both life and property and casualty insurance categories
Blue Cross Blue Shield’s equity is driven by it Familiarity and Purchase Consideration ratings; Health Net and AmeriGroup outpace Blue Cross Blue Shield on Quality.
Overall, health insurance is on a slow incline. With the exception of a dip in equity in 2016, health Insurance brands have continued to modestly improve over the last five years. Blue Cross and Blue Shield have traditionally tracked well above the rest; however Health Net and AmeriGroup are closing the gap.