A Powerful Blend of Direct Marketing Science and Market Research Drives The Hartford’s AARP Insurance Program.
Every seven minutes, a U.S. adult turns 50. For AARP, a nonprofit membership organization that advocates on behalf of Americans age 50 and older, that translates into a little more than 200 new potential members a day.
And for The Hartford, a 190-year-old investment management and insurance firm based in Hartford, CT, it also means a steady influx of new names for prospecting. Due to The Hartford’s relationship with AARP as the exclusive provider of discounted automobile (and homeowner) insurance to the association’s members, it has more of a vested interest in 50th birthday celebrations than most insurance firms.
This year The Hartford and AARP will celebrate a milestone of their own; 2004 marks the 20th anniversary of their partnership. “It’s a tremendous tribute to both organizations,” says Jonathan Bennett, The Hartford’s senior vice president, personal lines.
Underscoring this longevity is a decade of double-digit growth for the program, punctuated by its recent fourth-quarter 2003 performance that delivered an 11 percent increase over results in the fourth quarter of 2002.
Bennett attributes this continued success to several key factors. First, many of the baby boomers—who comprise the nation’s largest market segment—are turning 50, and are providing AARP with continual membership growth. Second, AARP maintains a dynamic relationship with its members and boasts a highly recognizable brand that complements The Hartford’s market position. And third, the demand for insurance products by aging Americans has been steadily accelerating.
While it might seem that panning for customers in the membership roster of just one association is limiting, consider this: AARP serves nearly half of the roughly 76 million Americans age 50 and older. That’s 35 million members and counting—a pretty strong prospecting pool for The Hartford’s insurance offers.