NICHE MARKETS
Going niche — how to impact
consumers with personalized needs
Exploring niche markets and the opportunities they present can be exciting and challenging.
One could even say it is necessary, because today’s consumer is expecting personalization at
every turn. In a legacy industry like life insurance, shifting from mass appeal to niche audiences
is difficult, but there is success to be had.
At John Hancock, we’re diving into a niche market with the launch of John Hancock Aspire TM ,
the first and only life insurance designed for people living with diabetes. 1 We’re pairing the
protection of a life insurance policy with a version of John Hancock Vitality that is enhanced
for the diabetes journey, enabling policyholders to access tools, resources and support to best
manage their diabetes and live a longer, healthier life.
It all starts with getting to know the market. You will need to tweak your usual playbook if
you’re going to make an impact. Before you go to market, do your research to enable the most
effective sales conversations that yield the best results.
Karin Egan, Vice President, Sales
Enablement at John Hancock
Insurance. Karin combines sales
skills, interest in technology, and
industry knowledge to assist the
John Hancock sales team and their
product distributors and sellers
in sales enablement and business
development.
1. Certain aspects of Aspire may change over time. There is
no coordination between Aspire and any health benefits
you may receive from an insurance policy, health plan,
or any other wellness programs you may be enrolled
in. Insurance products issued by: John Hancock Life
Insurance Company (U.S.A.) (not licensed in New York)
and John Hancock Life Insurance Company of New York.
MLINY121619077
2. Centers for Disease Control and Prevention. National
Diabetes Statistics Report, 2017. Atlanta, GA: Centers for
Disease Control and Prevention, U.S. Dept of Health and
Human Services; 2017.
3. Qualtrics survey on behalf of John Hancock, completed
Sept. 2017.
4. Based on American Diabetes Association population
figures, adjusted to reflect addressable market (ages 40-
79, HHI $40k+) and the likelihood of that subset having
diabetes (https://www.ncbi.nlm.nih.gov/pmc/articles/
PMC4603875), factored with the likelihood of person
with diabetes having life insurance (2017 John Hancock
study), and likelihood of being approved (John Hancock
historical underwriting data). With an estimated
customer pool of 3.2M and an average premium of $2k
(LIMRA), estimated market opportunity is $6 billion.
5. Qualtrics survey on behalf of John Hancock, completed
Sept. 2017.
6. In 2018, 88% of applicants with type 2 diabetes were
approved for coverage by John Hancock. 75% of people
with type 2 diabetes and other commonly related
conditions were approved for coverage. 66% of people
with type 1 or type 2 diabetes and other related
conditions were approved for coverage.
22
Perspectives
Q1 2020
What’s driving the coverage gap?
When it comes to the more than 30 million Americans living with diabetes 2 , we estimate
half don’t have enough life insurance or don’t have any coverage at all 3 . Our analysts estimate
it adds up to a $6 billion coverage gap. 4
Anytime there is a coverage gap as large as this one, find out what’s driving it. In this market,
misconceptions are a key driver. A John Hancock survey revealed that 50% of people living
with diabetes believed they could not qualify for life insurance because of their preexisting
condition. They also thought that if they could secure coverage, it would be too expensive. 5
We want to dispel these myths. Someone living with diabetes CAN get life insurance and it
CAN be affordable. 6
Know your audience
When you target a niche market, it is important to understand what makes it niche. In the
case of people living with diabetes, there are dozens of health-related decisions to be made
every day and support between doctor’s appointments can be hard to find.
Additionally, it’s important to recognize type one and type two diabetes are different
diseases with unique challenges. Take advantage of resources from the American Diabetes
Association and other advocacy groups so you can approach each prospective client with
understanding and empathy.
Know where to find your audience
Knowing where to reach your audience is another challenge; consider a more grassroots
prospecting approach:
Host a talk for a local diabetes support group, giving a life insurance overview and
dispelling some of the common myths.
Connect with diabetes professionals to expand your network. Have marketing materials
available to leave in their practice and waiting rooms.
Get involved in local diabetes charities and events where you can have a visible presence.
Marketing to a niche group like people living with diabetes may take more work upfront, but
ultimately, that investment in time is an investment in your business and your clients’ futures.