Vertis, a leading provider of targeted advertising, media, and marketing services, today announced the results of its proprietary "Customer Focus(R) 2005: Insurance" study, which reveals that 15 percent of total adults would consider purchasing identity theft insurance. More specifically, 38 percent of technically-savvy men age 18-24 expressed interest in this type of insurance, compared to 19 percent in 2003 (See Figure A in multimedia). Additionally, the figures report that 25 percent of women 25-34 and 23 percent of women 18-24 expressed interest in identity theft insurance.

"According to recent research from Gartner Inc., computer scams such as identity theft cost banks and credit card companies more than $1.2 billion annually," said Janice Mayo, senior vice president, marketing, at Vertis. "This has raised a red flag with consumers, especially those that frequently use the Internet, as they look to protect themselves from becoming a victim. Therefore, insurance agents who recognize this concern are wise to utilize multi-channel marketing strategies such as direct mail and the Internet to more actively promote identity theft insurance to this consumer audience."

Although identity theft insurance has found an interest within the 18-24 age group, the study also found increases of six to 10 percentage points in their interest in other insurance products, including long-term care, mortgage insurance, high and low face life insurance, and accident insurance products.

"According to the study, 22 percent of young adults interested in insurance products purchased them through their current provider, compared to eight percent in 2002. This presents a great opportunity for agents to cross-sell to these young adults," added Jim Litwin, vice president of market insight at Vertis. (See Figure B)

The Vertis "Customer Focus(R) 2005: Insurance" study shows the following additional findings, which provide insight into the type of insurance adults are most interested in purchasing.

Insurance Decisions Made by Adults

-- 42 percent of women 25-34 stated they would consider purchasing hospital/surgical benefits insurance in 2005, compared to 32 percent in 2003 (See Figure C)

-- 35 percent of men 18-24 considered purchasing accident products insurance such as AD&D (accidental death and dismemberment) and travel, compared to 25 percent in 2003

-- High face life insurance purchases increased to 14 percent among women 50-64, compared to 7 percent in 2003

-- 50 percent of men 65 and over responded that a $100,000 life insurance policy would be sufficient if they were interested in purchasing life insurance for the first time, compared to 28 percent in 2003

Who's Reading Insurance Direct Mail?

-- 77 percent of insurance direct mail readers with a household income of $50,000-$75,000 read life insurance direct mail

-- 53 percent of insurance direct mail readers with a household income of less than $30,000 responded to insurance direct mail by calling an 800 number, visiting a Web site, meeting in person with an agent, or via mail; this number has increased from 30 percent in 2002

-- Similarly, 46 percent of insurance direct mail readers with a household income of $75,000+ responded to mail offers from an insurance company, compared to 24 percent in 2002 (See Figure D)

-- 31 percent of women 25-34 who read direct mail looked at offers from insurance companies, compared to 23 percent in 2002; similarly, 24 percent of men in the same category read insurance direct mail, compared to 16 percent in 2002

Adults Interested in Identity Theft Insurance

-- 13 percent of women 50-64 stated they would consider purchasing identity theft insurance, an increase from six percent in 2003

-- Of the adults interested in identity theft insurance products, 34 percent have an income of less than $30,000, while 18 percent have an income of $50,000-$75,000 (See Figure E)

-- 22 percent of adults interested in identity theft insurance products have white collar occupations, while 14 percent have blue collar jobs

Who's Most Concerned About Their Pets?

-- 65 percent of adults interested in pet insurance have no children, compared to 28 percent with 1-2 children

-- Of the adults interested in pet insurance products, 37 percent are working women and 32 percent are white collar managers or professionals (See Figure F)

-- 43 percent of adults interested in pet insurance products are Baby Boomers (1946-1964), while 19 percent are Generation X adults (1965-1976)

-- Of the adults interested in pet insurance products, 30 percent have a household income of less than $30,000 while 18 percent have an income of $50,000-$75,000

About Customer Focus(R)

"Customer Focus"(R) is Vertis' proprietary annual study tracking consumer behavior across a wide variety of industry segments -- home improvement, furniture, grocery, sporting goods, home electronics, optical, insurance, credit cards, nonprofit, financial, retail, office supplies, and discount stores -- and media, including advertising inserts, direct marketing, and the Internet. The survey was first conducted in 1998 and, in subsequent years, has been expanded and modified to identify emerging consumer behavior patterns and track shifts in consumer practices and motivations.

Since its inception, "Customer Focus"(R) has proven to be one of the nation's most comprehensive examinations of consumer behavior. The survey of 2,000 adults -- conducted by one of the nation's leading field research companies in August/September 2004 -- measures both general and industry-specific shopping trends, and Vertis provides the significant data as a value-added service to its clients.

To acquire a customized "Customer Focus(R) 2005: Insurance" study or speak to a Vertis executive, please contact Michelle Metter or Maria Amor at 619-234-0345.

About Vertis

Vertis is the premier provider of targeted advertising, media, and marketing services. Its products and services include consumer research, audience targeting, media planning and placement, creative services and workflow management, targeted advertising inserts, direct mail, interactive marketing, packaging solutions, and digital one-to-one marketing and fulfillment. Headquartered in Baltimore, with facilities throughout the U.S. and the U.K., Vertis combines technology, creative resources, and innovative production to serve the targeted marketing needs of companies worldwide. To learn more about Vertis, visit www.vertisinc.com.

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believes," "anticipates," "expects," "estimates," "plans," "intends," and similar expressions are intended to identify forward-looking statements. All forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from projected results. Factors that may cause these differences include fluctuations in the cost of raw materials we use; changes in the advertising, marketing, and information services markets; the financial condition of our customers; actions by our competitors; changes in the legal or regulatory environment; general economic and business conditions in the U.S. and other countries; and changes in interest and foreign currency exchange rates.

Consequently, you should consider any such forward-looking statements only as our current plans, estimates, and beliefs. Even if those plans, estimates, or beliefs change because of future events or circumstances, we decline any obligation to publicly update or revise any such forward-looking statements.

Contacts

Vertis
Grace Platon, 800-365-8957
or
Formula
Michelle Metter/Maria Amor, 619-234-0345