The unprecedented events of the last two years have fundamentally changed people’s attitudes toward insurance, but not necessarily in the ways everyone expected.
For example, due to the initial economic impacts that included job losses and stock market crashes, many experts predicted that life insurance sales would drop accordingly. That didn’t happen, and the market is expected to remain robust.
Meanwhile, interest in home insurance policies is also on the rise. Since the pandemic hit, home construction prices have increased by about 30 percent. A basic homeowner’s policy is intended to rebuild a home in the event of a total loss, so now the typical homeowner needs 30 percent more coverage to ensure they’re covered if the worst happens.
Emergency home insurance (insurance that covers the costs of parts and repairs when faced with heating, plumbing, and drainage issues) is predicted to see huge growth in the next few years.
And now, after avoiding travel during the pandemic, many consumers are anxious to take international trips once more, and travel insurance companies are seeing that trend reflected in their sales.
Clearly, there are tremendous opportunities on the horizon in the realm of insurance sales, and forward-looking firms are contemplating how to ensure they claim their fair share of the pie.
In this article, we’ll consider some of the considerations for optimizing insurance sales volumes in the current marketplace.
Why Don’t People Buy Insurance?
Let’s start by exploring some of the most common barriers to successful insurance sales. According to a Deloitte survey:
- The number one reason people choose not to buy insurance is cost and the perception that it’s too expensive.
- The second reason is that the process from application to execution is too slow.
- Other common reasons include people believing they don’t need insurance, as well as the process being “too cumbersome and complex.”
Other research from a recent PWC survey reveals that 41% of consumers are willing to switch insurance providers in favor of those that offer more digitized solutions and sales.
However, that doesn’t mean that people don’t want to interface with human sales agents. Ideally, they want the best of both worlds: Digital experiences that convey a human touch and professional advice and guidance from an advisor who can guide them in choosing a plan that works best for them.
The Anatomy of Great Insurance Sales
First, let’s consider who sells insurance – insurance sales agents. Their role is to generate new business for insurance companies by contacting potential customers and selling them one or more types of insurance.
Part of the job is explaining various insurance policies (such as property and casualty, life, and health and long-term care) and helping people select the right products. Other responsibilities include:
- Analyzing customers’ current insurance policies and suggesting additions or changes
- Customizing insurance programs to suit individuals’ needs and circumstances
- Looking after administrative matters such as record keeping and policy renewals
Great insurance salespeople need a blend of hard and soft skills, i.e.:
- Good communication and listening skills
- A willingness to put customers’ needs first
- High levels of emotional intelligence and empathy
- High energy levels
- Honesty and persistence
- Technical knowledge
- An ability to offer a wide range of products
Insurance has traditionally been sold through distribution networks, so many insurers don’t have extensive direct sales capabilities in house.
If that sounds like you – and you’re looking to augment your insurance sales function to capitalize on the current market opportunities – you’d do well to engage a seasoned BPO partner.
Want to Accelerate Sales? Collaborate with Covenir
If you need an experienced, licensed, and consultative team to help you capture opportunities, Covenir is your turnkey sales solution.
Our team believes in thoughtful engagement, a consultative approach, asking good questions, carefully listening, and leaving your customers with a feeling of trust and goodwill.
With our team, you can enjoy:
- P&C insurance licensed sales professionals – all onshore
- Dynamic, flexible – able to adapt to client needs
- Ability to rapidly scale to support a carrier’s growth initiatives
- Respond quickly and capably when leads come in – ensuring speed to lead
- Quality workflow processes that focus on speed to close
- Consultative, collaborative approach working within client-established KPIs
- Assistance with any part or all of your sales process
- Ability to quickly extend and scale support beyond the realm of sales into areas such as FNOL and claims, print and mail, premiums, underwriting, customer support, and product advising – while you might not require these services today, if the need arises in the future, it’s quick and easy to enlist additional support from our team
At Covenir, we’re part of your team, not just an extension of it. To learn more about our insurance sales capabilities, contact us today at (508) 471-5031 or info@covenirbpo.com.