What Are the Investment Needs of Insurance Companies?

A US institutional asset manager wanted to better understand the investment needs of insurance companies to refine its marketing strategy and value proposition

The Challenge

Understanding the needs of institutional investors

The US institutional asset manager saw an opportunity to refine its marketing strategy and value proposition for insurance companies. To do so, it wanted to better understand the needs of investment decision-makers at large insurance companies in North America and Europe, and how they were being influenced by market trends in a volatile geopolitical environment. It also needed to benchmark its existing brand awareness and identify market growth opportunities based on unmet needs.

Insurance asset management is a complex, highly regulated market, and institutional investors are challenging to reach. It required a B2B market research company with experience in financial services market research, and a track record in being able to find and research this audience profile.

Our Approach

Quantifying what drives investment decisions for insurers

Werk Insight, a B2B market research agency, designed a needs assessment and market opportunity analysis to explore insurers’ current and future investing needs and asset allocations. Our aim was to capture perspectives from senior investment decision-makers at insurance companies in North America and Europe on a range of public and private asset classes, as well as assess brand awareness and white space opportunities in the market.

In the initial qualitative phase, we conducted 30-minute in-depth interviews with senior investment decision-makers at insurance companies, including Chief Investment Officers and Senior Portfolio Managers. The qualitative interviews delved into current trends and attitudes in the market, identifying areas for deeper exploration.

Based on the findings from the qualitative research phase, we designed a quantitative survey of 250 senior investment decision-makers at insurance companies. We targeted insurers in North America and Europe managing a minimum of $1 billion in AUM, with the majority managing more than $10 billion in AUM. The survey was conducted using CATI interviews, which allowed the moderators the opportunity to clarify questions or responses. It also ensured only qualified, high-quality respondents were participating.

The survey captured the insurers’ needs, views on current trends, behaviors and attitudes, as well as brand awareness and perception of the asset manager and its competitors. We analyzed the results using statistical techniques and metrics:

• Using a trade-off exercise, we identified the most important needs for investment decision-makers at insurance companies when selecting an asset manager, and where those needs are not met. This identified white space opportunities where the asset manager could grow its service or investment offerings.
• Drivers analysis identified the factors that truly drive advocacy (likelihood to recommend) among institutional investors. This provided insight into which factors decision-makers say are important, versus those which have a genuine impact.
• Brand health metrics benchmarked the asset manager’s brand awareness and perception in the market versus its competitors. In combination with the needs and drivers analysis, this identified how brand awareness and perception could be improved.

We segmented the results by geographic region, assets under management, type of insurance products offered (P&C, life, re-insurance, etc.), role/seniority, and more. This gave nuanced insights into the needs and drivers of different investment decision-makers at insurance companies.

The Insight

Brand strategy to meet the needs of insurance companies

Our research findings enhanced the institutional asset manager’s understanding of what drives investment decision-making at insurance companies based on current market trends. By uncovering the key challenges insurers are facing and their unmet needs, it guided the institutional asset manager on the development of investment products and service offerings to grow market share.

In addition to this, benchmarking the asset manager’s brand awareness and perception in the market identified its strengths and weaknesses. Combined with the understanding of insurer investors’ needs and drivers, it gave clear direction on the key elements to incorporate in the brand’s value proposition to most effectively reach client prospects.

The insights informed the asset manager’s marketing and sales strategy. This included specifically which channels to prioritize and the messaging that resonates most with its target audiences.