What Are Insurance Consumers Looking for Now?
Unprecedented events have created an environment of profound uncertainty for insurance consumers seeking stability for the future. The pandemic, social unrest, global catastrophes, including severe weather occurrences, and the economic slowdown have altered consumers’ purchasing mindsets across all product and service categories, including insurance.
A recent 2021 Chubb survey of successful individuals revealed that 80% of respondents agree that current events in the world have impacted their feelings about risk, and they are now more aware of risk than they were a year or two ago.
The research also found that respondents felt the purchasing of insurance is no longer a transaction, but rather a solution for overall financial wellbeing in a precarious world.
Therefore, agents and brokers now have an opportunity to succeed in this new environment by engaging differently with clients and prospects.
What Buyers Are Looking For
Many insurance buyers feel a greater sense of urgency to secure the right protection. But how do they ensure they’re buying what they need?
Our research shows clients want to be educated about their exposures and advised on how to best protect their assets to ensure future financial wellbeing — and this direction is an antidote to the emotions associated with the pandemic and other recent events.
Chubb’s survey found that 73% of respondents want expert, personally tailored advice and 70% want guidance to the best products and services. In addition, 83% of survey respondents agree their insurance agent could provide service beyond their expectations by explaining how to protect themselves from different risks.
Moreover, clients are seeking advisors who understand the emotional attachment to the assets they are insuring.
Agents should acknowledgeand emphasize the emotional end benefits of insurance products, so that clients know how their insurance will respond in the event of a claim. This advice helps build partnerships and a sense of stability for the future. For example, consider how to explain coverage and service in the context of client’s concerns, demonstrating agency commitment to be there in their time of need.
Showcase the firm’s expertise to make the emotional and financial benefits of customized insurance come alive.
Talk to clients about the emotional attachment to assets and potential loss when discussing premium increases at renewal or when speaking to prospects about upgrading their insurance coverages.
Overall, positioning insurance for household financial stability and to protect assets, while hedging against potential risk exposures, can help establish a compelling emotional connection. Strategies designed to increase transparency and engagement can differentiate agents or brokers and help them build trust with their clients, which in turn, improves client retention and referrals.