Marketing Auto Insurance

Since the beginning of 2005 Russian car owners are obliged to buy auto insurance for collision. Supposedly, this kind of insurance would make driving in Russia safer. First, drivers would be more careful as wouldn’t want to pay extra insurance fees in case they drive recklessly. Second, owners of expensive cars would be protected from moneyless idiots driving 20-years old (and 200 dollars) worth Zhigulis.

Everything with the word ‘obligatory’ makes insurance companies rave. There are hundreds of insurance companies and everyone wants those obligatory rubles from drivers. In this highly competitive environment it’s necessary to focus on some definite consumer segment and target it effectively.

“Itil” Insurance Company from Kazan (Tatarstan) targeted its marketing efforts on older people who drive dilapidated Soviet-era cars. Like the guy on this ad in his “Zaporozhets” car (no longer on the market). Now he is really happy – with “Itil” auto insurance he can ram as many Mercedeces as he likes with no dire consequences. Or so they say.



There are dozens of jokes about Zhuguli ramming Mercedes. For example, an old Zhuguli collides with a Mercedes 600. Three big sullen guys get out of Mercedes. An old poor and skinny pensioner get out of Zhiguli. “Now, old man. Get ready. We will kick the s*** out of you”- say the guys. “No, please! That’s not fair! There are three of you but I’m only one” – says the pensioner. The guys take counsel with one another for a couple of minutes. “Ok, you’re right. Alex will be on your side.”

By the way, does this poor Russian pensioner remind you of someone?