In this post, I’ll talk about where people are buying insurance—and specifically, life insurance. In summary: the agent lives on, but direct channels and the Internet are closing the gap.
Where are people buying life insurance?
Accenture conducted an Insurance Consumer Survey and looked at the behaviors of life insurance buyers. We found that they continue to exhibit traditional buyer values, and that a significant portion of them will buy additional policies as their needs change.
Here’s the opportunity for insurers: buyers want to buy policies from companies they trust—not just the ones they currently do business with.
What channels do life insurance customers prefer?
Consider that 21 percent of life insurance customers prefer to buy online. As Generation Y—or millennials—get older, their preference for newer, more immediate means of communication is not just a fad, so we expect an increase in the percentage of life insurance who choose to buy life insurance online.
Build it (trust) and they will come
Despite the increase in the online channel and numerous changes in channel delivery, Accenture research shows that 75 percent of consumers still prefer to buy from agents and trusted sources.
It goes back to the idea that insurance customers want to buy from companies that they trust. The moral of the story, then, is to build trust to attract and retain customers.
For more information, download Attracting and Retaining Customers for Life.