What Workplace Buyers Said about Their Brokers

A third Bought Simply Because It Was Offered at Work

According to a recent LIMRA study, featured by  in BenefitsPro on April 11, 2012,  more people are looking to their workplaces to get the financial products they need. According to Kim Landry, analyst at LIMRA’s Group Product Research,there are two important drivers that facilitate the purchase of life insurance at work:

  • The convenience of having the resource at their place of work
  • A feeling of security felt by working with someone their employer has (implicitly) approved.

Life triggers—such as changing marital status or having or adopting a baby—are the top reasons consumers said they shopped for life insurance at the workplace. Statistics show that the workplace is a strong channel for life insurance sales:

  • 75% of workplace shoppers bought life insurance.
  • 33% of them said they bought the product simply because it was offered to them at work.
  • 20% of all life insurance shoppers purchased the product through their place of work.

Who buys at work?

According to LIMRA’s study:

  • workplace shoppers are more likely to be male than female (55 percent vs. 45 percent).
  • More than three-quarters are married or living with a partner.
  • A majority have children under 18 in their households.
  • Workplace shoppers tend to be younger than those who shop through other channels.
  • They have higher average incomes and tend to have more investable assets.

How Was The Service Experience?

Workplace shoppers were generally satisfied with the service they received from their producer/broker.

  • 80% felt their producer provided good information about the policy, and was very knowledgeable about insurance in general.
  • Nearly 75% felt they could trust their producer.

Still there is room for improvement. The report showed that a surprising number of workplace shoppers felt that they needed more follow-up from the sales representative, a significantly higher percentage for consumers who shop through other channels.

  • Nearly 50% said their producer failed to follow up with them.
  • 40% didn’t feel that their producer considered what they could actually afford.
  • More than a 33% said they didn’t receive enough product options.
  • 33% who didn’t buy said they weren’t finished shopping.

3 Things Producers Can Do To Improve

LIMRA identified three things  that workplace producers can do to improve:

  • Since workplace shoppers tend to be younger and less experienced, producers should ensure they fully understand the products.
  • Provide additional information if needed during the decision-making process, such as printed reference materials or an online link.
  • Always follow-up with the workplace shopper.

Kim Landry, an analyst at LIMRA’s Group Product Research.  notes. “Our behavioral economic research indicates that consumers may need time to consider their decision and, as our study found, if we don’t follow-up with them, we may be leaving money on the table.”

Snap! Principle of Workplace Life Insurance Selling:

Workplace is an increasingly important channel for life insurance, and a strong commitment to service can significantly improve results.