What 2020 Shows Us About Selling Life Insurance in 2021

The MIB Life Index reported a 7.6% increase in insurance applications in October, the largest year-over-year increase in nine years.

LIMRA projects life insurance sales growth to continue its rebound in 2021 and 2022. And carriers have undergone unprecedented digital transformation in 2020 to better equip themselves to meet evolving consumer expectations.

Capitalizing on Life Insurance Sales Opportunities in 2021

Consumers' increasing comfort with shopping for insurance online, and carriers' efforts to shore up their digital presence, does not imply that the role of an agent is diminishing. In fact, it's quite the opposite.

In the sea of information available to a consumer now, especially with the heightened stakes of the world today, life insurance buyers need more guidance than ever in navigating these waters and making informed decisions. Yet, only 4 out of 10 policyholders received a call from their agent during the pandemic, according to news from a recent J.D. Power study.

The advisors who will benefit from the heightened consumer interest in the market are the ones who leverage the data and technology available to them to better understand their clients' needs and have a timely and relevant reason to call.

Consider the findings from a recent research study that Jornaya conducted with iptiQ by Swiss Re on the impact that comparison shopping has on application activity and policy issuance.

• 1 in 3 consumers shopped on a comparison shopping site in the year leading up to applying for life insurance.
• 57% of consumers witnessed were on a comparison shopping site the same day they applied.
• Consumers witnessed on comparison shopping sites before applying completed their purchase 68% more often than those who were not seen.
• Applicants who were witnessed in-market for a mortgage product before applying for life insurance were 45% more likely to become a policyholder.

Here's the 2021 Checklist for life insurance distributors.

1. If you haven't done so already, shore up your digital capabilities.

This is table stakes in today's market. Leverage technology to establish a digital presence: marketing, quoting, and applications. Maintain a centralized platform where customer information coming from these activities is stored. Be able to ingest data about customers, append external data to those profiles, and create marketable segments based on that data. This will help with #2.

2. Personalize each experience a customer has with your brand.

No two consumer journeys are alike, so why should the buying experience be the same? Use the data available to you — your first-party data collected from previous interactions you've had with them, paired with third-party data about their interests, recent shopping, etc. — to create a unique and memorable experience for the consumer. This goes for lead generation, quote nurturing, and application follow-up. Whether that's a well-timed phone call exactly when the person needed it most or a spot-on email that introduces an idea the consumer hasn't previously considered, offering a tailored experience, powered by data and technology, will be the unfair advantage for distributors in 2021.

3. Return to the basics.

Consumers need help making major-life purchases. Being able to meet them in the market when they need that help is the first step. The next step is simply to offer expert advice they will appreciate. Be the trusted gateway for your customer for all of their considerations, whether you can sell them the product or not. It's the best way to create long-term, sticky relationships that result in value for the client and the advisor.

Customers (current and prospective) are out there shopping. Data and technology will help with identifying who. The role of the advisor in today's market is to understand why. If an advisor knows why someone is shopping, they can help them make the most informed decision. Why will shine a light on where they are in the buying journey, which informs what that person needs at that time, and when to spend more time with them.

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Jeff Piotrowski is the senior director of insurance at Jornaya, a data-as-a-service provider with a view of about 400 million consumer purchase journeys every month. He manages Jornaya's relationships with strategic clients and partners in the life insurance, health insurance, and property and casualty insurance sectors.