Insurance Battlefield: Champions vs. Challengers

Insurance was a fairly staid business before Flo, the gecko, and faux sports agent Gabe Gabriel hit the airwaves. Now your insurance preferences may have more to do with the kind of comedy you prefer than any product or service differentiation.

However, mobile data can help us understand the nuanced differences among insurance company customers. In this corner, you have the challenger: Esurance. Esurance caters to younger, English-speaking customers that tend to pick other challenger brands. At the other corner is the champion, State Farm, a century-old incumbent that caters more to older customers but has also done surprisingly well with Spanish speakers.

Our analysis of Esurance, State Farm, Geico, Nationwide, and Progressive unearthed some key demographic and behavioral differences between challengers and champions.

Is age a factor?

Yes. Not surprisingly, more than 50% of Esurance app users are under 44 years of age while the majority of State Farm users are over 45.

Whose customers are shopping for “un seguro”?

While our analysis showed that gender is not statistically significant, we did see a big difference when it came to language. Fully 21% of State Farm app users speak Spanish. That tells us that if marketers lean into this differentiator and speak to consumers in their preferred languages, both brands may be able to capture growth from their competitors.

Do challenger and champion customers stay in their lanes?

When we looked at the ownership of other apps, we discovered that the customers of both challengers and champions are remarkably consistent. Esurance app users choose other challenger brands for their financial service and shopping needs, while State Farm users navigate to other champion brands.

*Esurance customers are 76x more likely to bank with Ally

*State Farm customers are 18x more likely to shop at Sam’s Club

That’s just scratching the surface. At TrueData, we’ve captured other deep insights into mobile app usage from State Farm, Geico, Nationwide, Progressive, and Esurance. Request access now or connect with us to schedule a brief demo of the TrueData Platform and see first-hand how our data can help grow your brand.