CHICAGO--(BUSINESS WIRE)--Increased enforcement by the Consumer Financial Protection Bureau, which seemed to intensify in late 2012, continues to have an effect on the marketing outreach of affinity programs utilized by the financial community targeting the insurance needs of their customers. In fact, the latest intelligence from Chicago-based Competiscan reveals that the first six months of 2014 saw a three-year low for financial institutions participating in life, health and long term care insurance affinity direct marketing.
According to Richard Goldman, CEO & Founder of Competiscan, financial institutions like Wells Fargo, Barclays Bank, US Bank, Bank of America, and HSBC were once the leading affinities in the insurance niche prior to the increased government scrutiny, based on estimated mail volume (EMV). However, these once dominant national players have not only remained sidelined since that time, they have almost completely ceased from promoting ancillary insurance products and programs via direct marketing. For the category as a whole, Competiscan research shows financial institution branded affinity EMV for these same insurance programs has averaged a 1.91 percent decrease from the first half of 2012 through the first half of 2014.
Although there have been no signs of recovery to pre-2013 mail volumes, Competiscan has observed an inverse relationship between the number of affinities marketing their insurance programs and estimated mail volume. The first six months of 2013 saw the most players in this space but the least amount of EMV. Comparatively, the same period in 2014 showed fewer players but greater direct mail volume.
“Based on the cyclical nature of business, some financial affinity players have shown signs of coming back even in the face of potential regulatory scrutiny, while others may never re-enter the marketplace,” said Goldman. “For companies considering targeting an existing financial customer base with ancillary products and programs, they will be faced with less competitors inside consumers’ mailboxes which may present a greater direct marketing response opportunity.”
Goldman further noted, “Financial Institutions are going to continue to look for additional profitable endeavors and will figure out ways to leverage existing customer base opportunities. The key players will adapt and evolve.”
Founded in 2006, Competiscan provides its valued clients insights into the direct marketing strategies of competitors. Competiscan and its powerful web-based search utility monitors direct mail, email, mobile, online banners, print, and social networking communications targeted at consumers, businesses, financial advisors, insurance producers, and providers over time. As the market leader, Competiscan’s clients are better informed leading to more effective communications and marketing with the ultimate goal of staying ahead of the competition. Visit www.competiscan.com for more information.