For the past several years, homeowner insurance companies have relied on the booming housing market to bring in new clients. But the slow sales in the housing market mean fewer new homeowners need coverage. This economic situation has caused several of these businesses to look for different ways to generate revenue. According to Mintel Comperemedia, homeowner insurance companies are increasingly using direct mail.
These companies realized they had to “either convince current clients to increase their coverage or steal customers from the competition”, says Daniel Hayes, VP of Insurance Services for Mintel Comperemedia. Overall, the industry spent 19% more on direct mail in 2008 and Hayes expects to see similar growth in 2009 and beyond. Continued softness in housing sales means more of these companies may continue to turn to direct mail as they try to compete by offering lower premiums or additional coverage.[Mintel Comperemedia release, 2009]