BrandZ™ Category Analysis: Insurance
Purposeful brands grow
category value in Asia
BrandZ™ Vital Signs clearly diagnose the health of the Insurance Top 10. These brands score only average in Love, which is unsurprising in a category that sells products that consumers prefer not to buy or use. However, the Insurance Top 10 scores above average in Brand Purpose and Communications. With variations by market, insurance brands have convinced consumers that having insurance makes their lives better.
The Asian brands have done an especially effective job communicating Brand Purpose in markets where insurance is relatively new to many consumers, and the growing middle class is acquiring assets that need protection and wealth that needs investment. In just 12 years, the Asian brand proportion of value in the BrandZ™ Insurance Top 10 has increased from only 11 percent to 58 percent. The proportion of value produced by both US and European brands declined by half, in part because a focus on price has eroded Meaningful Difference.
The value of the Asian brands increased 676 percent over 10 years, while the US and European brand value declined 27 percent and 38 percent, respectively. The Asian brands outscored the US and European brands in Brand Purpose and Innovation. They tied the US brands with a high Communications score of 115. The Asia brands are much younger. They were established only around 20 years ago, on average, while the European brands started a century ago and the US brands about 70 years ago.
Insurance brands have done a good job in communicating Brand Purpose. In Asia, brands are successfully introducing insurance to new groups of consumers. Reaching new customers is key to future category success in most regions, as millennials reach their family formation years and enter the market for insurance products. Establishing relationships with millennials challenges brands to create relevant communications and offer products with the insurance technology they expect. Competing beyond price, for millennials and other customers, will require improving Innovation and Brand Experience, two BrandZ™ Vital Signs in which the insurance brands score just above average.
Value shifts to Asia…
The Asian brand proportion of value in the BrandZ™ Insurance Top 10 has increased from only 11 percent to 58 percent. At the same time, the proportion of value produced by both US and European brands declined by half.
… Asian brands outscore US and European brands
The Asian brands outscored the US and European brands in Brand Purpose, and Innovation. They tied the US brands with a high Communications score of 115.