Case studies – Hiscox Home Insurance, Scottish Widows

Commended – Most Integrated Campaign
The Market Challenge
Home insurance is a fiercely competitive, price driven market with dominant players routinely following discount pricing policies. As a specialist insurer Hiscox offers a level of cover and service that standard insurers don’t match. This shapes our entire marketing strategy – not price. This is a very different proposition to the rest of the market, and as well as seeking to change consumer perceptions of home insurance, Hiscox has the added challenge of being an unknown consumer brand, despite being around since 1901.
We also have to compete with other dominant home insurers that routinely spend in excess of £30m on advertising per year. With relatively low budgets, Hiscox has to punch well above its weight to stand out. And we have a limited window of opportunity to establish the brand before competitors target the same segments.
Business Challenge
• To double our customer base every year for the next five years.
• To be seen as the leading quality home insurance provider.
• To challenge the conventional approach of competing on price alone by highlighting the importance of having good quality cover.                                                                                                                                         • To develop a clearly differentiated proposition that resonates with our target audience.
The proposed strategy
Hiscox offers its customers complete confidence that their homes are properly covered. This is backed up by a 5-star rating from Defaqto, independent research analysts, and the fact that nearly half of Hiscox’s claims would not have been covered by a standard insurance policy.
• With 2.8 million Medium Net Worth and High Net Worth households in the UK of whom only 25% have a specialist home insurance policy, this represents huge business potential for Hiscox.
• Using customer knowledge and industry research, a broad audience of AB adults was identified with further segmentation undertaken by media.
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