With 2011 sales of life insurance products up just 4% over last year, carriers and producers would be well served by mining social networks to step up growth.
The future of life insurance prospecting for reps and carriers is on the Internet. With 2011 sales of life insurance products up just 4% over last year, carriers and producers would be well served by mining social networks to step up growth, LIMRA chief executive Robert A. Kerzner said today at the industry research group's annual conference in New York.
“The change in technology is happening at an absolutely staggering pace — hand-held mobile devices, tablets, platforms in social media …” he said. “We must use that to increase distribution, increase productivity of our distribution so they can close sales and to reach out to consumers in ways we haven't in the past.”
Producers historically have been reluctant to ask clients for referrals, but today's young insurance consumer is more likely to scout out brokers or agents online via websites like Yelp or through Facebook, Mr. Kerzner said. Gen X and Gen Y consumers don't make buying decisions without consulting others for their opinion. Accordingly, insurers will have to prepare representatives to deal with this new level of interaction.
“Many companies aren't changing fast enough. I understand compliance and security issues, but if we want to grow, we need to get on this train,” Mr. Kerzner said, citing the fact that YouTube gets 3 billion views a day. “Are you training your reps on social media, and are they learning the importance of being trustworthy, in case someone ever rates them?”
Carriers can also turn web surfing into sales, particularly as customers are researching insurance products online. MetLife Inc., for example, has tapped online researching and turned it into a sales opportunity by giving web surfers an opportunity to communicate with a producer through an instant message or to have a rep call them immediately, Mr. Kerzner added. Better yet, the process can help customers decide how much coverage they need and close the sale quickly.
“The rep can assist the client in assessing their needs and can offer immediate qualification for up to a certain amount of life insurance — in fact, many could be approved right now,” Mr. Kerzner added.
“Harnessing technology in its broadest sense can create new ways to sell the products and in essence, create new ways for distribution, but we need to think creatively regarding ways to get our products in front of people at exactly the right time,” he said.
