agentexhorter
Expert
- 94
See the interesting commentary below on marketing life insurance.
I believe the statistics will surprise many within the life insurance industry who are thinking that direct insurance marketing is only happening in auto and home insurance.
The following are excerpts from LIDMA, Life Insurance Direct Marketing Association… Life Insurance Direct Marketing Association
Direct response selling of life insurance is the fastest growing segment of the life insurance industry today. Each year a higher percentage of overall life insurance sales can be attributed to some type of direct marketing effort.
More than $300 million in life insurance premium is initiated each year from direct response efforts and direct sales of life insurance represents as much as 10% of all policy sales on an annual basis.
The growth of the direct sales niche can largely be attributed to a void direct marketers are filling, especially with middle income earners. Statistics from the American Council of Life Insurance 2004 Fact Book reported 12,581,000 individual permanent and term life polices were purchased, virtually the identical number purchased almost 30 years before. Over the same time period there was a 38% increase in the U.S population base of 293.7 million in 2004, as compared to 212.6 million in 1975 - yet the number of policies sold remained consistent.
According to LIMRA, the Life Insurance Market Research Association, in 2004, one-third of adults in the U.S. carry no life insurance at all. Although there has been an increase in group insurance with ownership rising from 25% in 1976 to 37% in 2004, there is still a large and growing segment of the population which is not being served and life insurance direct marketers are ideally positioned to occupy this niche.
“The direct response industry has adapted to a continued change in customer behavior towards more remote, direct buying,” says Wedeking. “While there continues to be strong demand for traditional face to face advice for consumers, the growth of direct response sales in our industry shows that there is an incredible opportunity for the life insurance industry to serve the otherwise underserved middle market.”
I believe the statistics will surprise many within the life insurance industry who are thinking that direct insurance marketing is only happening in auto and home insurance.
The following are excerpts from LIDMA, Life Insurance Direct Marketing Association… Life Insurance Direct Marketing Association
Direct response selling of life insurance is the fastest growing segment of the life insurance industry today. Each year a higher percentage of overall life insurance sales can be attributed to some type of direct marketing effort.
More than $300 million in life insurance premium is initiated each year from direct response efforts and direct sales of life insurance represents as much as 10% of all policy sales on an annual basis.
The growth of the direct sales niche can largely be attributed to a void direct marketers are filling, especially with middle income earners. Statistics from the American Council of Life Insurance 2004 Fact Book reported 12,581,000 individual permanent and term life polices were purchased, virtually the identical number purchased almost 30 years before. Over the same time period there was a 38% increase in the U.S population base of 293.7 million in 2004, as compared to 212.6 million in 1975 - yet the number of policies sold remained consistent.
According to LIMRA, the Life Insurance Market Research Association, in 2004, one-third of adults in the U.S. carry no life insurance at all. Although there has been an increase in group insurance with ownership rising from 25% in 1976 to 37% in 2004, there is still a large and growing segment of the population which is not being served and life insurance direct marketers are ideally positioned to occupy this niche.
“The direct response industry has adapted to a continued change in customer behavior towards more remote, direct buying,” says Wedeking. “While there continues to be strong demand for traditional face to face advice for consumers, the growth of direct response sales in our industry shows that there is an incredible opportunity for the life insurance industry to serve the otherwise underserved middle market.”
They just want to work smarter, harder. If people really don't want to work, they can refer the case out and do a 50/50 split. I guess that works pretty good for the agents that don't focus on Life.
