From experience and analysis of their claims data, FMG know that each Spring they receive an influx of claims related to tractor fires. Often the fire ignites during a smoko break as there’s no airflow to cool the area. Indeed a smoko break is also a prefect time for quick-acting starlings to build a nest – which can be completed in as little time as 20 or 30 minutes. The heat from the engine and other components begins to burn the nesting material. If not caught early, the entire tractor can become engulfed in flames.
FMG saw an opportunity to alert farmers to this seasonal risk and deliver a win/win solution: more aware and less inconvenienced farmers, thus fewer claims.
Via an innovative campaign utilising traditional direct marketing with an incentive to ‘act now’, along with a call to action to view an entertaining video outlining a common cause of tractor fires, FMG was able to engage their current client base with a timely reminder of the risks associated with nesting birds.
The results (in the first year) have seen a 36% reduction in the number of claims and YTD in the follow-up campaign a further 60% reduction in the number of claims (at the time of entering this year’s Awards).
The return on investment (savings in claim value vs cost of campaign) was 3:1 in 2011 and is projected at 8:1 in 2012. Consolidated ROI is tracking towards 5:1.
From a brand proposition point of view, FMG have again demonstrated that they understand life on the land better than any other insurer and truly live up to their ‘knows what works out here’ positioning.