A new joint study by LIMRA and Maddock Douglas reveals there are 19 million "stuck shoppers" of life insurance in the United States — that is, consumers who believe life insurance is valuable and necessary but have been derailed during the shopping process.
"Our focus groups consistently described shopping for life insurance and other financial products as confusing, frustrating and overwhelming, which kept them from making a decision on what to buy," says Scott Kallenbach, research director, LIMRA Strategic Research. "The words, images and messages used to explain financial products don't seem realistic or relatable to many of these consumers. Our research was designed to figure out how companies can improve their communications to help these consumers get the coverage they want and need."
The study uncovered a key factor in the stuck shopper dilemma: communication that the industry employs lacks authenticity. Authentic communication is more than just using everyday language and laymen's terms. It also includes relatable visuals and attainable goals. There are 6 elements that make up authentic communication:
1. Easy to Understand — Language that we use everyday
2. Down to Earth — Images that feel realistic
3. Memorable — Communication that is interesting
4. Positive — Messages that are warm and comforting
5. Credible — Sources of information that are trustworthy
6. Relevant — Communication that says the company understands them, and who they are
