Less than 5 in 10 consumers know they can purchase life insurance from a multiline carrier, a new report reveals.
LIMRA, Windsor, Conn., released this finding in a new report, “The Insurance Cross-Purchase Survey,” which examines the results of a poll of more than 4,000 people. LIMRA undertook the survey to understand consumers’ purchase behaviors and why people do or do not buy life insurance from their multi-line company.
While 95% of the multi-line companies represented in the survey offer life insurance, only 48% of consumers aware they can buy life insurance from them. And 87% of consumers say they have never spoken to their multi-line agent about life insurance.
The study also found that while 63% of participants own life insurance, only 19% own it with the same company as their automobile insurance.
“There is an obvious disconnect,” says Laura Murach, assistant director of LIMRA Distribution Research. “In past surveys, 90% of LIMRA’s multi-line exclusive agent (MLEA) panel said they always let clients know they can help them with their auto, home, and life insurance needs’ during the first conversation or meeting.
“Perhaps it’s not that sales agents aren’t bringing up the topic of life insurance; but rather, the conversation is not resonating with potential clients enough to respond — or even to remember the conversation,” Murach adds.
In a separate study, LIMRA research shows that only 8% of 64.3 million households from 13 multiple-line exclusive-agent (MLEA) companies own automobile, homeowners and life and/or financial products with the same company.
Aside from price, LIMRA says, people buy life insurance from their multi-line company mainly because the products are well-suited to their needs (47%) and because they trust the company’s reputation (44%).
Limra also reports that 61% of respondents who purchased life insurance from their multi-line company (19% of total) did so because they trusted the company’s reputation; 56% cite their trust in their agent; 485 say the price was right; and 41% mentioned that they bought the product because they considered it was the best.
Of the people who purchased life insurance from their multi-line company, 41% discussed it when they first met with the agent. But only 21% of those surveyed said their agent brought up the topic of life insurance.