The old adage that life insurance is sold and not bought is partly as a result of pandemic-affected buying habits and partly because of the technological ease with which it has become possible to purchase insurance. upside down.
That’s according to new JDPower research into the life insurance business that found customers are starting to buy life insurance far more frequently than before. The survey, based on nearly 7,000 consumer responses in July and August, found that the industry-wide quote rate rose for the first time in 30 years last year and rose another 9% this year, with purchase rates following the increase in numbers. We found a 13% increase in consumers looking for life insurance.
Concern about the future is the biggest driver for consumers to start investigating life insurance, heightened by the pandemic and other global issues. More than 57% of his respondents cited future concerns as their primary motivation for seeking policy.
Research shows that cost is not the primary concern when buying life insurance. Concerns about the future, plus the perceived value of insurance policies and the view that insurers make recommendations in the best interests of their customers, make him choose one brand over the other. important factor in the event.
“In this inflationary period, with price becoming the most important factor in so many consumer purchasing decisions, life insurance customers are more concerned with their future and the insurer’s ability to deliver on their promises than with price. It’s worth noting that they’re interested,” he said. Robert M. Lajdziak, Director of Global Insurance Intelligence at JD Power, said: “This allows insurers to differentiate, articulate their unique value proposition, and provide prospective customers with a complete understanding of all aspects of an insurance policy. We have a responsibility to make it possible.”
Comments from insurance representatives
Contacted insurance company executives confirmed the findings.
Andrew Dorman says: Vice President of Digital Distribution and Strategy for Legal & General America Life Insurance. “Our experience at Legal & General America is that consumers want to know that the insurance they are buying is worth it.”
But in addition to perceived value, consumers are also making purchasing decisions based on undertaking innovations that are more accessible through digital buying platforms and don’t require more invasive processes, Doerman said. said.
“Life insurance has never been easier, faster or more affordable than it is today,” he added.
According to JD Power research, this may be one of the factors that stabilizes overall satisfaction. Satisfaction was 774 points (out of 1,000 points), down 2 points from the previous year. Satisfaction with the shopping process is also stable, with the same score this year as last year, despite the speed of policy execution that has improved new buyer satisfaction.
Doug Bailey is a journalist and freelance writer living outside Boston.he can be reached at [email protected].
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