Identity Theft Insurance Appeals to Young Adults

Vertis, a provider of targeted advertising, media, and marketing services, announced the results of its proprietary “Customer Focus 2005: Insurance” study, which reveals that 15 percent of total adults would consider purchasing identity theft insurance.

More specifically, 38 percent of technically-savvy men age 18-24 expressed interest in this type of insurance, compared to 19 percent in 2003. Additionally, the figures report that 25 percent of women 25-34 and 23 percent of women 18-24 expressed interest in identity theft insurance.

“According to recent research from Gartner Inc., computer scams such as identity theft cost banks and credit card companies more than $1.2 billion annually,” said Janice Mayo, senior vice president, marketing, at Vertis. “This has raised a red flag with consumers, especially those that frequently use the Internet, as they look to protect themselves from becoming a victim. Therefore, insurance agents who recognize this concern are wise to utilize multi-channel marketing strategies such as direct mail and the Internet to more actively promote identity theft insurance to this consumer audience.”

Although identity theft insurance has found an interest within the 18-24 age group, the study also found increases of six to 10 percentage points in their interest in other insurance products, including long-term care, mortgage insurance, high and low face life insurance, and accident insurance products.

“According to the study, 22 percent of young adults interested in insurance products purchased them through their current provider, compared to eight percent in 2002. This presents a great opportunity for agents to cross-sell to these young adults,” added Jim Litwin, vice president of market insight at Vertis.

The Vertis “Customer Focus 2005: Insurance” study shows the following additional findings, which provide insight into the type of insurance adults are most interested in purchasing.

Insurance decisions made by adults

* 42 percent of women 25-34 stated they would consider purchasing hospital/surgical benefits insurance in 2005, compared to 32 percent in 2003;
* 35 percent of men 18-24 considered purchasing accident products insurance such as AD&D (accidental death and dismemberment) and travel, compared to 25 percent in 2003;
* High face life insurance purchases increased to 14 percent among women 50-64, compared to 7 percent in 2003;
* 50 percent of men 65 and over responded that a $100,000 life insurance policy would be sufficient if they were interested in purchasing life insurance for the first time, compared to 28 percent in 2003.

Who’s reading insurance direct mail?

* 77 percent of insurance direct mail readers with a household income of $50,000-$75,000 read life insurance direct mail;
* 53 percent of insurance direct mail readers with a household income of less than $30,000 responded to insurance direct mail by calling an 800 number, visiting a Web site, meeting in person with an agent, or via mail; this number has increased from 30 percent in 2002;
* Similarly, 46 percent of insurance direct mail readers with a household income of $75,000+ responded to mail offers from an insurance company, compared to 24 percent in 2002;
* 31 percent of women 25-34 who read direct mail looked at offers from insurance companies, compared to 23 percent in 2002; similarly, 24 percent of men in the same category read insurance direct mail, compared to 16 percent in 2002.

Adults interested in identity theft insurance

* 13 percent of women 50-64 stated they would consider purchasing identity theft insurance, an increase from six percent in 2003;
* Of the adults interested in identity theft insurance products, 34 percent have an income of less than $30,000, while 18 percent have an income of $50,000-$75,000;
* 22 percent of adults interested in identity theft insurance products have white collar occupations, while 14 percent have blue collar jobs.

Who’s most concerned about their pets?

* 65 percent of adults interested in pet insurance have no children, compared to 28 percent with 1-2 children;
* Of the adults interested in pet insurance products, 37 percent are working women and 32 percent are white collar managers or professionals;
* 43 percent of adults interested in pet insurance products are Baby Boomers (1946-1964), while 19 percent are Generation X adults (1965-1976);
* Of the adults interested in pet insurance products, 30 percent have a household income of less than $30,000 while 18 percent have an income of $50,000-$75,000.