For many Americans, the process of shopping for any major purchase can be stressful. The competition for products in all industries is intense and this is no different in the life insurance world. According to new LIMRA research however, the process of shopping for life insurance might be better than other products. Seventy-five percent of life insurance shoppers said that the experience of buying the coverage was similar to or better than other major purchases.
LIMRA surveyed over 1,500 recent life insurance shoppers in the United States about their buying behavior, shopping and buying experience, as well as their digital behavior. Nearly half of the shoppers said that nothing about the experience was negative.
Many shoppers had positive things to say about the life insurance shopping process. Nearly one in five life insurance shoppers said that they learned a lot of helpful information.
One in ten noted that they liked being able to compare products and prices when shopping for life insurance. Those who haven’t bought yet, but intend to, were more likely to say they liked the option of the comparisons. Overall, three quarters of shoppers said they enjoy shopping online and over one third said they made a purchase through an online ad. 91 percent of life insurance shoppers also said they used at least one social media platform when shopping.
The process of shopping for life insurance online is now becoming just as popular as shopping in person. The internet is a top source for information, with nearly half of shoppers using this method. Half of shoppers say they visit the website of the specific company they are shopping for life insurance and another half read online reviews of companies and financial professionals. Reviews have been becoming a more popular shopping tool so that consumers can assess the possibility of having negative experiences.
There were shoppers who said they did not enjoy their time shopping for life insurance. Almost 15 percent of shoppers did not like how they were treated during the shopping process. They felt they were pestered by aggressive sales tactics or experienced poor customer experience. Another 13 percent said that they felt overwhelmed by the process. They said that there was too much information — a majority these consumers fall into the “still shopping” group.
In order to turn more shoppers into buyers, life insurers need to pinpoint the areas that frustrate shoppers and shape the experience they offer to better fit the needs of the consumer. Having the knowledge of what life insurance shoppers look for, both in-person and online, will help companies devise better strategies to convert them into sales.