Table of Contents
Scope and Themes
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- What you need to know
- Data sources
- Consumer survey data
- Comperemedia
- Abbreviations and terms
- Abbreviations
- Terms
- Companies mentioned in this report
Executive Summary
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- Key points
- Premiums continue to increase
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- Figure 1: U.S. property & casualty premiums, 2002-11
- New car sales are rising
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- Figure 2: U.S. car/light truck sales (millions), 2000-12
- Housing market is getting stronger
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- Figure 3: Houses sold (Seasonally adjusted annual rate), December 2005-December 2012
- Figure 4: Median new home sales prices, U.S., not seasonally adjusted, November 2011-November 2012
- The industry is beginning to recover
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- Figure 5: Financial results for U.S. property and casualty insurers, 2008-first half of 2012
- Most sales made through direct writers
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- Figure 6: Percentage of net written premiums, by type of agent, 2011
- The internet is a popular way to comparison shop, but…
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- Figure 7: Channel used for obtaining quotes, 2009, 2012
- Most people prefer to purchase through agents
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- Figure 8: Preference for purchasing online or through agent, by age, October 2012
- Usage-based insurance is poised to explode
- Severe weather and natural disasters continue to be a challenge
- Top 10 auto mailers make up most of spending
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- Figure 9: Percentage of direct mail spend, top 10 auto acquisition mailers, Q3 2012
- Top 10 homeowners mailers led by State Farm
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- Figure 10: Top 10 homeowners acquisition spending, Q3 2012
Issues in the Market
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- Which demographics offer the greatest opportunity for the insurance industry?
- How is technology an industry game changer?
Insights and Opportunities
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- Key points
- Renters insurance offers growth
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- Figure 11: Homeownership rates, by age, 2005-10
- Big data can help insurers gain competitive advantage
- Use of technology is key
- Usage-based insurance is poised to explode
- Improvement in claims processing will yield benefits
- Mobile capabilities
- Speak to Hispanics
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- Figure 12: Percentage change in population, Hispanics/White non-Hispanics, 2010-15
Trend Applications
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- Trend: Cam Cam
- Industry Application
- Trend: Click and Connect
- Industry Application
- 2015 Trend: Access Anything, Anywhere
- Industry Application
Market Size
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- Key points
- The industry is beginning to recover
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- Figure 13: Financial results for U.S. property and casualty insurers, 2008-first half of 2012
- Premiums continue to increase
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- Figure 14: U.S. property & casualty premiums, 2002-11
- Auto premiums headed upward
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- Figure 15: Premiums written for auto insurance, 2003-11
- Homeowners insurance is rising steadily
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- Figure 16: Premiums written for homeowners insurance, 2003-11
Competitive Context & SWOT Analysis
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- Key points
- Leading company strengths, weaknesses, opportunities, and threats
- Allstate
- State Farm
- GEICO
- USAA
Segment Performance
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- Key points
- Average expenditure for auto insurance starting to turn upward
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- Figure 17: Average annual auto insurance expenditures in U.S. (2010 dollars), 2001-10
- Figure 18: Average annual expenditures for auto insurance, by state, 2008, 2010
- Average premium for homeowners insurance is rising
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- Figure 19: Average annual premiums for homeowners insurance, 2002-10
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- Figure 20: Average annual premiums for homeowners insurance, by state, 2008, 2010
- Average premiums for renters insurance are headed back up
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- Figure 21: Average annual premiums for renters insurance, 2002-10
Market Drivers
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- Key points
- The economy is continuing to improve
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- Figure 22: U.S. GDP Q1 2010-Q3 2012
- Lower unemployment leads to more new households
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- Figure 23: Unemployment rate, January 2011-December 2012
- The population continues to grow and age
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- Figure 24: percent change in U.S. population, by age, 2013-18
- Figure 25: U.S. population, by age, 2013-18
- New car sales are rising
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- Figure 26: U.S. car/light truck sales (millions), 2000-12
- Housing market awakens
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- Figure 27: New housing starts, by U.S. region, 2008-10
- Figure 28: Houses sold (Seasonally adjusted annual rate), December 2005, December 2012
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- Figure 29: Existing home sales, seasonally adjusted annual rate, 1998-2012 (through November)
- Figure 30: Median new home sales prices, U.S., not seasonally adjusted, November 2011-November 2012
- Figure 31: Median existing home sales prices, U.S., not seasonally adjusted, November 2011-November 2012
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- Figure 32: Median existing home sales prices, by region, not seasonally adjusted, November 2011-November 2012
- Severe weather and natural disasters continue to be a challenge
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- Figure 33: Natural disaster losses in the U.S., 2012
- Investment growth projected to be modest
- Regulatory concerns
Leading Companies
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- Key points
- State Farm is the leader
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- Figure 34: Top writers of property/casualty insurance by direct written premium (DWP), 2009-11
- State Farm leading in auto as well
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- Figure 35: U.S. private passenger auto insurance top writers, by direct written premium (DWP), 2009-11
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- Figure 36: Homeowners insurance top writers, by direct written premium (DWP), 2009-11
Innovations and Innovators
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- Key points
- Sprint offers expanded telematics capability
- GEICO releases a new iPad app
- Progressive expands “Snapshot” to non-customers
- State Farm forms a partnership with Ford to encourage UBI usage
Marketing Channels
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- Key points
- Most sales are made through direct writers
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- Figure 37: Percentage of net written premiums brought in, by type of agent
- Most sales are made through an agent
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- Figure 38: Channel used for purchase of auto insurance, October 2012
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- Figure 39: Preference for purchasing through agent vs. online, by age, October 2012
- The internet is a popular way to comparison shop
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- Figure 40: Channel used for obtaining quotes, April 2012
- Figure 41: Resources used for obtaining quotes online, April 2012
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- Figure 42: Likelihood of purchasing insurance online, June 2012
- Millennials and Gen X account for most internet sales
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- Figure 43: Percentage purchased auto insurance online, by generation, October 2012
Marketing Strategies
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- Key points
- Price no longer as important a differentiating factor
- Industry ad spend is up
- Total personal line mail volume down in 2012
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- Figure 44: Overall personal lines mail activity, Q4 2010-Q3 2012
- GEICO is biggest P&C mailer
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- Figure 45: Estimated mail volumes of top four P&C mailers, Q3 2011-Q3 2012
- Top 10 auto mailers make up 90% of spend
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- Figure 46: Percentage of total direct mail spend, top 10 auto acquisition mailers, Q3 2012
- Top 10 homeowners mailers led by State Farm
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- Figure 47: Top 10 homeowners insurance acquisition spending, Q3 2012
- Direct Mail
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- Figure 48: USAA direct mail ad, December 2012
- Figure 49: Farmers direct mail ad, 2013
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- Figure 50: Allstate direct mail ad, December 2012
- Hispanic marketing
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- Figure 51: State Farm bilingual direct mail ad, April 2012
- Figure 52: Farmers direct mail ad, September 2012
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- Figure 53: The Hartford print ad, December 2012
- Figure 54: Progressive print ad, September 2012
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- Figure 55: Liberty Mutual print ad, May 2012
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- Figure 56: Progressive email ad, November 2012
- Figure 57: American family email ad, August 2012
- Online
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- Figure 58: Farmers online ad, December 2012
- Figure 59: Travelers online ad, May-July 2012
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- Figure 60: Nationwide online ad, July-December 2012
- Television
Social Media—Property and Casualty Insurance
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- Key points
- Key social media metrics
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- Figure 61: Key brand metrics, property and casualty insurance, January 2013
- Market overview
- Brand usage and awareness
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- Figure 62: Usage and awareness of selected property and casualty insurance brands, November 2012
- Interaction with brands
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- Figure 63: Interaction with selected property and casualty brands, November 2012
- Online conversations
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- Figure 64: Selected twitter mentions surrounding GEICO brand, January 6, 2013
- Figure 65: Percentage of consumer conversation by selected property and casualty insurance brands, Dec. 15, 2012-Jan. 14, 2013
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- Figure 66: Online mentions, selected property and casualty insurance brands, percentage of total daily mentions, by day, December 15, 2012-January 14, 2013
- Where are people talking about property and casualty insurance brands?
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- Figure 67: Mentions by page type, selected property and casualty insurance brands, Dec. 15, 2012-Jan. 14, 2013
- What are people talking about?
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- Figure 68: Mentions by type of conversation, selected property and casualty insurance brands, Dec. 15, 2012- Jan. 14, 2013
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- Figure 69: Major areas of discussion surrounding property and casualty insurance brands, percentage of daily mentions, by day, Dec. 15, 2012-Jan. 14, 2013
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- Figure 70: Major areas of discussion surrounding property and casualty insurance brands, by page type, Dec. 15, 2012-Jan. 14, 2013
- Brand analysis
- State Farm
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- Figure 71: State Farm key social media metrics, January 2013
- Key online campaigns
- What we think
- GEICO
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- Figure 72: GEICO key social media metrics, January 2013
- Key online campaigns
- What we think
- Allstate
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- Figure 73: Allstate key social media metrics, January 2013
- Key online campaigns
- What we think
- Progressive
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- Figure 74: Progressive key social media metrics, January 2013
- Key online campaigns
- What we think
- Farmers
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- Figure 75: Farmers key social media metrics, January 2013
- Key online campaigns
- What we think
- Liberty Mutual
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- Figure 76: Liberty Mutual key social media metrics, January 2013
- Key online campaigns
- What we think
- Nationwide
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- Figure 77: Nationwide key social media metrics, January 2013
- Key online campaigns
- What we think
The Consumer—Experience with Insurance
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- Key points
- Ownership of insurance
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- Figure 78: Experience with insurance, by age, October 2012
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- Figure 79: Experience with insurance, by household income, October 2012
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- Figure 80: Experience with insurance, by race/Hispanic origin, October 2012
Insurance Carrier—Market Share
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- Key points
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- Figure 81: Insurance provider for auto/homeowners/renters, any usage, by household income, October 2012
- Figure 82: Insurance provider for auto/homeowners/renters, any usage, by race/Hispanic origin, October 2012
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- Figure 83: Insurance provider for auto/homeowners/renters, any usage, by generation, October 2012
- Figure 84: Insurance provider for auto insurance, by generation, October 2012
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- Figure 85: Insurance provider for homeowners/renters, by generation, October 2012
How Auto Insurance is Purchased
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- Key points
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- Figure 86: Channels used for auto insurance purchase, by gender, October 2012
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- Figure 87: Channels used for auto insurance purchase, by gender and age, October 2012
- Figure 88: Channels used for auto insurance purchase, by race/Hispanic origin, October 2012
Reasons for Switching Insurance Companies
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- Key points
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- Figure 89: Reason for switching auto insurance providers, by generation, October 2012
Attitudes about Insurance Companies and Agents
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- Key points
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- Figure 90: Attitudes about insurance companies and insurance agents, by gender, October 2012
- Figure 91: Attitudes about insurance companies and insurance agents, by age, October 2012
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- Figure 92: Attitudes about insurance companies and insurance agents, by gender and age, October 2012
- Figure 93: Attitudes about insurance companies and insurance agents, by household income, October 2012
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- Figure 94: Attitudes about insurance companies and insurance agents, by race/Hispanic origin, October 2012
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- Figure 95: Attitudes about insurance companies and insurance agents, by experience with insurance, October 2012
Shopping Behavior and Satisfaction
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- Key points
- Auto/homeowners/other P&C Insurance—shopping preferences
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- Figure 96: Insurance shopping preferences, any usage, by gender and age, October 2012
- Figure 97: Insurance shopping preferences, any usage, by income, October 2012
- Auto Insurance—shopping behavior and satisfaction
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- Figure 98: Satisfaction with auto insurance provider and shopping behavior, by gender and age, October 2012
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- Figure 99: Satisfaction with auto insurance and shopping behavior, by income, October 2012
- Homeowners/renters insurance
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- Figure 100: Satisfaction with homeowners/renters insurance and shopping behavior, by gender and age, October 2012
- Figure 101: Satisfaction with homeowners/renters insurance and shopping behavior, by income, October 2012
- Shopping preferences and satisfaction by brand
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- Figure 102: Shopping/satisfaction by top brands, any usage, October 2012
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- Figure 103: Shopping/satisfaction by top brands, auto insurance providers, October 2012
- Figure 104: Shopping/satisfaction by top brands, homeowners/renters insurance providers, October 2012
Cluster Analysis
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- Frugal Skeptics
- Demographics
- Characteristics
- Opportunity
- Satisfied Loyalists
- Demographics
- Characteristics
- Opportunity
- Service Switchers
- Demographics
- Characteristics
- Opportunity
- Quality Seekers
- Characteristics
- Opportunity
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- Figure 105: Target clusters, October 2012
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- Figure 106: Experience with insurance, by target clusters, October 2012
- Figure 107: Insurance carrier for auto/homeowners/renters, any usage, by target clusters, October 2012
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- Figure 108: Insurance carrier for auto/homeowners/renters, any usage, by target clusters, October 2012
- Figure 109: Insurance carrier for auto/homeowners/renters, any usage, by target clusters, October 2012
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- Figure 110: Channels used to purchase auto insurance, by target clusters, October 2012
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- Figure 111: Attitudes about insurance companies and insurance agents, by target clusters, October 2012
- Figure 112: Insurance shopping behavior and satisfaction, by target clusters, October 2012
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- Figure 113: Target clusters, by demographic, October 2012
- Methodology
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- Figure 114: Key Drivers of switching behavior for auto insurance, January 2013
Appendix: Brand Usage and Awareness
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- Figure 115: All brands usage and awareness, November 2012
- Figure 116: Farmers Insurance, usage and awareness, by demographics, November 2012
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- Figure 117: State farm usage and awareness, by demographics, November 2012
- Figure 118: Allstate usage and awareness, by demographics, November 2012
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- Figure 119: Progressive usage and awareness, by demographics, November 2012
- Figure 120: GEICO usage and awareness, by demographics, November 2012
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- Figure 121: Nationwide usage and awareness, by demographics, November 2012
- Figure 122: Liberty mutual usage and awareness, by demographics, November 2012
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Appendix: Social Media and Property and Casualty Insurance
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- Figure 123: Activities conducted on social media, November 2012
- Figure 124: Farmers—Activities conducted on social media, by demographics, November 2012
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- Figure 125: Farmers—Activities conducted on social media, by demographics, November 2012
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- Figure 126: State farm —Activities conducted on social media, by demographics, November 2012
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- Figure 127: State farm—Activities conducted on social media, by demographics, November 2012
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- Figure 128: Allstate—Activities conducted on social media, by demographics, November 2012
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- Figure 129: Allstate—Activities conducted on social media, by demographics, November 2012
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- Figure 130: Progressive—Activities conducted on social media, by demographics, November 2012
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- Figure 131: Progressive—Activities conducted on social media, by demographics, November 2012
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- Figure 132: GEICO—Activities conducted on social media, by demographics, November 2012
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- Figure 133: GEICO—Activities conducted on social media, by demographics, November 2012
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- Figure 134: Nationwide—Activities conducted on social media, by demographics, November 2012
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- Figure 135: Nationwide—Activities conducted on social media, by demographics, November 2012
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- Figure 136: Liberty Mutual—Activities conducted on social media, by demographics, November 2012
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- Figure 137: Liberty Mutual—Activities conducted on social media, by demographics, November 2012
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- Figure 138: Percentage of consumer conversation by selected property and casualty insurance brands, Dec. 15, 2012-Jan. 14, 2013
- Figure 139: Online mentions, selected property and casualty insurance brands, percentage of total daily mentions, by day, Dec. 15, 2012-Jan. 14, 2013
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- Figure 140: Mentions by page type, selected property and casualty insurance brands, Dec. 15, 2012-Jan. 14, 2013
- Figure 141: Mentions by type of conversation, selected property and casualty insurance brands, Dec.15, 2012- Jan. 14, 2013
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- Figure 142: Major areas of discussion surrounding property and casualty insurance brands, percentage of daily mentions, by day, Dec. 15, 2012-Jan. 14, 2013
- Figure 143: Major areas of discussion surrounding property and casualty insurance brands, by page type, Dec. 15, 2012-Jan. 14, 2013
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Appendix: Trade Associations
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- American Insurance Association (AIA)
- American Risk and Insurance Association (ARIA)
- Chartered Property Casualty Underwriter Society (CPCUS)
- Independent Insurance Agents & Brokers of America Inc. (IIABA)
- Insurance Information Institute (III)
- National Association of Mutual Insurance Companies (NAMIC)
- Property Casualty Insurers Association of America (PCI)
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