There is a great debate on whether life insurance will be sold entirely on-line. Whether individual agents will lose their business to online marketing of insurance companies and the various web aggregators like Bima Online. Are the days of the classical agent in life insurance getting over? This is a question that is bothering many in the life insurance sector.
How many policies are sold through agents in USA?
Such questions are also asked in advanced countries like the USA and UK. Given below are the statistics of how much individual agents (selling face-to-face) sell as a percentage of total sales in the USA. In 2017 for example only 11 % bought life insurance without the help of an agent. 51 % bought from independent agents and another 38 % from affiliated agents through face-to-face meetings. A total of 89 % was bought from agents.
Source: https://www.iii.org/fact-statistic/facts-statistics-life-insurance
The information is very useful and very encouraging for the agency channels in India. If in advanced countries the situation is that 89 % still preferred to buy from an agent, in the foreseeable future, the individual agent’s business is intact. There is no need to panic on this count. To the best of my knowledge no life insurance company in India sells more than 2 % online. And it has been that way for many years.
Life insurance can only be sold through agents
I have always wondered why agents panic that they will lose to the internet. Every person who has sold life insurance knows that to close a sale one has to make multiple visits and canvas for policies. Rarely does a buyer of life insurance buy of his or her own accord and willingness. We all know the innumerable objections that are thrown our way and how difficult it is to overcome objections. The internet can never replace the agent.
Online Platforms Can Create your Brand and Prospects
But there is an important reason why every agent should befriend the internet. It is increasingly becoming a very valuable source of getting leads, creating your brand image and building a group of loyal customers. There is however a professional way in which to pursue digital prospecting. Read my article (Digital Prospecting) in this Blog. Click here to open the article page.
Customers are getting internet savvy
In USA for example, LIMRA has found out that 45 % of those who bought life insurance purchased it after doing their online research on various products available. The purchase was however from an agent, not online. In India too recent study of Google Search words from non-metro towns in 2018 (reported in Indian Express, 10 May, 2019) found that 67 % of all Google searches in banking, financial services and insurance, was for life insurance.
So should YOU
Given these trends it is imperative that agents should start efforts to be online in a variety of ways. Build an online community which will your source of business in the years to come.