Aside from baking flour and fitness equipment, pandemic shopping lists in 2020 included a wide range of other items. Additionally, they increased their life insurance coverage.
According to MIB Group Inc., a member-owned organization, applications for life insurance contracts increased by 4% in 2020, the highest year-over-year annual growth rate since 2001.
According to insurance agents and executives, because of the continual coverage of deaths caused by the coronavirus, many young individuals who had previously delayed purchasing life insurance have now done so.
In a bad economy, people bought their insurance to supplement or replace that offered by their employers.
Raichlen Blanks, 41, a Connecticut resident, purchased a term life insurance policy through the Haven Life online unit of Massachusetts Mutual Life Insurance Co. with her husband as the beneficiary.
Sales Growth During Uncertain Times
Life insurance sales have always been boosted by fear. Customers were made hyperaware of the financial risks linked with serious sickness and death due to the implementation of COVID-19. As a result, in both 2020 and 2021, people felt like they needed more life insurance.
32% of consumers believe the pandemic has made them more inclined to buy life insurance, and 42% say having COVID has made them more likely to purchase life insurance.
Because of the epidemic, many current policyholders who felt underinsured increased their interest in life insurance. According to LIMRA, 20 percent of customers were considering boosting their insurance coverage due to the pandemic.
LIMRA.com Because of the broad interest in life insurance plans sparked by the financial crisis, insurers must now find new ways to recruit customers and maintain growth.
Life Insurance Market Demographics: A Changing Landscape
The number of people purchasing health insurance has increased since the outbreak of the epidemic, especially among younger persons.
The number of life insurance applications increased by 13% among those under 44, compared to a 9% increase among those between 45 and 59 and a 0.4% increase among those 60 and older.
When you’re younger, you’re more likely to have children and more outstanding mortgage or student loan debt to pay off.
The unemployment rate for more youthful people was also greater compared to older workers, so it’s possible that some of them bought individual insurance to make up for the loss of employer-sponsored group insurance plans.
It’s a good thing for insurance companies that many young people are already aware of having life insurance plans. Even yet, to remain relevant in the future, they’ll have to make changes to their product lines and business models to serve the younger generations better.
Digital agendas are moving faster than ever before.
Consumption patterns, demographic shifts, and technological advances have all profoundly impacted consumers’ expectations of life insurance companies. Customers want life insurance solutions to be accessible, quick, personalized, and flexible more than ever.
Since the epidemic outbreak, only a third of clients have purchased life insurance through an agent. Before the epidemic, 44% of people bought life insurance plans in person.
InsurTechs are collaborating with life insurance firms across the sector to develop new models, tools, and the best possible digital experience.
Insurance CEOs report that 85% believe COVID-19 has expedited their digitalization and 78% believe it has accelerated their development of an integrated digital customer experience.
Insurers must continue to accelerate their digital agendas and meet customers where they are — behind their computers and smartphones – from now on.