Insurance is infamous for having one of the highest customer acquisition costs of any industry.

Here is a fun thought experiment: if the ten largest auto insurers in the US pooled their 2019 marketing budgets and paid that money out directly to all U.S. drivers (everyone, not just their own customers), how much would they each take home? Enough for a cup of coffee? Maybe a breakfast sandwich?

Think bigger. Because between what the top three alone spent on marketing in 2019, every American driver — all 228 million of them — could have received as much as $30, if not a bit more.

There are better, more cost-effective ways for insurers to tackle these problems. The biggest question is: who will do it first?

More here: The case for insurance loyalty programs