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New Study Shows That Owners of Life Insurance Are Very Satisfied with Their Companies

New Study Shows That Owners of Life Insurance Are Very Satisfied with Their Carrier

Successful agents know that future business or referrals may depend not just on how well you do selling a current policy, but also how well the customer service with that carrier ends up serving that client.

Knowing past experiences that other clients have had with the customer service provided by the insurance carrier can help you figure out how to direct future clients. For more people, ease of customer service and overall professionalism are important factors to be considered. As an agent, being mindful of this and doing your own research about how companies may it easy- or not so easy- to do business with them is a powerful tool.

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What Makes Customer Service So Important?

Customer service is a primary concern for anyone who is in the market for purchasing a life insurance policy. Although it may be the family members ultimately handling the situations with the policy after a loved one has passed away, there are many different reasons why a person may wish to contact the company while still alive.

For example, they may be generating cash value in a universal life policy or need to update their beneficiaries. Feeling overall satisfied with the customer service provided by these companies can be a unique selling point for you as an agent to highlight how consumers are very happy with offerings today.

The JD Power 2017 US Life Insurance Study found that satisfaction levels increased for customers because of favorable pricing, higher customer engagement, and enhanced economic conditions.

The overall customer satisfaction ranking of life insurance companies increased by 16 index points over the previous year. More consumers are showing interest in life insurance because of a battering economy, which gives insurance companies the chance to improve customer engagement levels by clarifying billing statements and various company policies. For example, the JD Power Study identified that a greater proportion of newer customers share they completely understand billing statements.

That was a 20-percentage point increase from the year prior. Price, of course, continues to be a leading reason behind customer satisfaction and having multiple policies with the same insurance carrier in which the owner receives a discount, also correlated to higher satisfaction levels. Widespread agent distribution and multi-policy discounts were of primary concern for a number of different purchasers of life insurance. 25 different insurance companies participated in the study and the top five insurers were State Farm, Met Life, Pacific Life, Nationwide and North Western Mutual. You can use this as an opportunity to present unique selling to your customers.

Be The Professional Your Client Needs

As you walk them through various policy options, when the price is not a major differentiator from one policy type to another, you can illustrate how customer satisfaction levels with that individual insurance company may contribute to their willingness to purchase a policy with that insurer. Finding the right insurance company involves a careful mix of the types of policies offered, the benefits for signing up for a policy, and the customer’s unique needs. But other issues such as price and customer satisfaction can factor into the final decision made by the life insurance policyholder.

Identifying the individual needs of the potential policyholder can help you to target the right companies. Your innate knowledge of the various types of health conditions that are treated differently at varying insurance companies can help you to target the right policy application and to give the client the overall feeling that you are very familiar with the pros and cons going with one policy versus another.

Key Takeaways In This Article

  • High levels of customer satisfaction plays into repeat sales and new sales, use these experiences as examples to new prospects.
  • Make sure your previous clients are still having their needs met by you and the insurance carrier.
  • The right solution for your client isn't always ONE policy.

Over to You

We'd love to hear your thoughts in the comments below on:

  1. Do you talk about the insurance carrier's reputation with your clients, why or why not?
  2. Do you sell more than one policy to your clients when the need is there?
  3. Do you ever use a fact finder to uncover all the needs of your client, why or why not?

If you have any questions, please leave a comment below. We will carefully read each one of them. Happy Selling!

About the Author Matthew King

Matthew King is a co-owner of TR King Insurance Marketing and partner at Independent Life Insurance Agent Association. When he's not creating processes, content, and developing SEO strategies, he likes to immerse in gaming with his wife and friends.

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