News
 Get
Rich Quick: Work for the Insurance Industry
Insurance carriers are sending out mail lots of
it. According to a recently released white paper
report, the insurance industry will continue to grow
and use direct mail but how much?
The white paper was written by Fouad Nader of the
Adrenale Corporation, a consultancy specializing in
the postal market, business and technology trends.
In the report, Nader states that increases in
population, household income and age are resulting
in continued growth of transaction and advertising
mail from the insurance industry.
Just how much will the industry grow? The report
reveals that First-Class Mail to households from the
insurance industry grew by more than 2.7 percent per
year since 2000 (from four to five billion pieces)
at a time when total First-Class Mail declined by
about 1.4 percent annually. Direct mail volume and
ad spending grew faster than other correspondence
and transaction letters. Standard mail to households
from insurance grew by close to 5 percent per year
since 1987, the report states.
Here are the reports other findings. According to
Nader:
The substantial number of mergers and acquisitions
that occurred in the insurance sector has made
mailing budgets larger, more visible and ripe for
rationalization and cost reduction.
Postage price increases may have also driven
financial services companies to seek additional
cost-avoidance alternatives such as outsourcing,
shifting mail from priority to economy categories,
reducing the weight of statements to save on the
second-ounce rate and using more work-sharing
incentives such as pre-automating, pre-sorting or
downstream entry.
Decline of mail volume due to electronic
alternatives such as Internet-based applications,
e-policies, e-bill presentments and payments has
not happened. Mail volumes from these industries
continued to grow.
Long-standing drivers of mail, such as households,
population, income growth, etc. appear still to be
valid, although some relationships are not as strong
as they were historically. For example, the number
of households still tends to be correlated with mail
growth. Continued population and income growth has
had a positive effect on the major mail streams.
Also, as households become wealthier, they tend to
spend more on services and acquire account
relationships that generate bills, statements,
customer acquisition, advertising and relationship
mail.
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