Insurers are beginning to see the opportunity the over-50s segment provides, expanding further into the market and adapting their insurance propositions to target these valuable customers.
Insurers are finally beginning to acknowledge the value and opportunity of the over-50s market. This demographic accounts for 44.7% of the UK’s adult population and 70% of household wealth, according to the Office for National Statistics and Saga Investment Services. SunLife and Ageas have recently unveiled plans to adapt their strategies for targeting the market.
SunLife, which exclusively targets the over-50s, has recently announced a partnership with BGL’s partnership brand Junction to enter the motor insurance market and relaunch its home insurance product. It will initially launch the two products on the aggregator Comparethemarket.com, which is owned by BGL, before offering them directly on its website.
SunLife will launch a TV and direct marketing campaign to attract new customers. According to the insurer, at present only 11% of marketing or brand money is used to target the over-50s. Representing the demographic in advertising is therefore likely to be beneficial. However, the brand needs to ensure effective targeting by portraying this age group as active and healthy, and in a positive light, appealing to those 75-year olds who feels 35. Marketing that instead focuses on the issues of old age to target products is often stereotypical and off-putting to customers.
SunLife’s focus on data science in trying to understand customers on a deeper level should help to do this. It has a wealth of data which will be used to understand lifestyle factors and develop more bespoke products.
Ageas has also made changes in its strategy to target the over-50s market. The insurer’s over-50s broking brand Castle Cover has stopped accepting new business, with customers instead being directed towards RIAS, Ageas’ over-50s brand which allows customers to buy directly.
There are a few insurance players that exclusively target the over-50s market. The market is well served, but it is not generally thought of as competitive. It is clear that the insurance market is reviewing and adapting its proposition for the over-50s market, and is looking to capitalize upon the significant opportunity the segment provides.