This week I got an interesting letter from my car insurance company, letting me know that they are excited to announce the transition to a new brand name – 21st Century Insurance. According to the letter, “This new brand name is meant to reflect our commitment to being the kind of forward-thinking insurance company you need today, in the 21st century.” While I compared prices from various companies, I’m not a bargain hunter when it comes to my car insurance. I stick to the deal that my “dad’s guy” offers me. I have had the same car insurance since my 16th birthday and I like being able to pick up the phone and talk to someone who knows me when I’ve smashed up a car. I have always been happy to be insured by AIG; I’ve been a loyal customer. I still remember when the agent explained how AIG is the largest insurer around, bragging how the company is “a name you know you can count on.” That was all he ever had to say, it sounded great.
The rebranding letter insulted me, it really hurt my feelings. I’ve stuck with AIG through the years, despite tempting offers from cavemen and geckos. Marketing classes teach concepts about the importance of branding. I find it amazing that the company bailed on its good name across the board. CBS reported, “CEO Edward Liddy revealed that while the company’s healthy businesses would survive, its name probably wouldn’t. ‘I think the AIG name is so thoroughly wounded and disgraced that we're probably going to have to change it,’ he said.” (http://blogs.abcnews.com/moneybeat/2009/03/liddy-aig-name.html)
AIG has now changed their brands in an effort to trick their own customers. I believe that marketing gurus will study AIG’s branding strategy from now on. While I could argue both sides, I’m not convinced that this is a smart move. I do think if my insurance company is not willing to be loyal to their own good name, then I’m no longer willing to be a loyal customer. Changing the name might help retain some of their customers, but it convinced me that I should shop around.
Apparently AIG’s end-game is to sell the car insurance division. MSNBC is reporting that a deal is being worked out with Zurich Financial Services to sell 21st Century for $1.9 Billion (http://www.msnbc.msn.com/id/30249719/). The letter writer must have forgotten to mention that. The end of the letter reads, “At this point you are probably wondering what this means to you. It means that although our brand name will change, our service and commitment never will.” How is AIG’s commitment unchanged if they are currently trying to sell-off my relationship? While the terms and conditions of my current insurance policy may remain the same, our relationship is nearing the end.
