Category: Disability Insurance

Overcoming the Adversity of the Online Insurance Tidal Wave

As a motivational sales speaker in the insurance and financial services industries, whenever I am asked to deliver a keynote address on overcoming adversity, I always feel like I have come home.

After an accident that left me diagnosed as a quadriplegic, I was encouraged by some incredible people to join the insurance and financial services industries. I found a new mindset and developed the resolve to thrive in this highly competitive market. Within five years, I was awarded entrance into the Million Dollar Round Table (MDRT). After a second car accident, I was once again challenged to reinvent my life and was inspired to share my story with others as a motivational keynote business speaker. My mission is to inspire insurance and financial services agents, brokers and organizations to overcome the adversity they face in the marketplace.

Fighting the Tidal Wave

Like it or not, the internet is becoming the primary enabler for how people get their insurance information. While the independent or exclusive agent has been the main channel of distribution, each year our industry is seeing a greater influence of direct sales.

According to Techcrunch.com, “While many factors are driving the tipping point in the online distribution of insurance, the thread that ties it all together is actually a simple one: changing demographics. The millennial generation has tremendous buying power, and will soon become the industry’s primary customer, whether in consumer or commercial lines.”

At the same time that the demographic is shifting to be more favorably inclined to a nameless, faceless method of buying insurance, the average age of brokers has been increasing. Insurance companies must understand that new buyers have different purchasing patterns. To quantify this pattern, let’s go back to March 2015 when the Gallup organization compared how different generations are engaged with their insurance companies.

Gallup found in comparing Millennials to Baby Boomers, 31 percent of Millennials were “Fully Engaged” with their insurance providers as opposed to 41 percent of Baby Boomers. At the other end of the spectrum, 27 percent of Millennials were “Actively Disengaged”, i.e., they couldn’t care less where they get their coverage as long as they are covered, as opposed to 23 percent of Baby Boomers.

Writer Jason Fisher in a piece entitled, “2018 Life Insurance Statistics And Facts” concluded that in 2018: “Roughly 50% of adults admitted to searching for life insurance online last year, and about a third even tried to make their purchase online.” Agents and brokers believing that internet insurance purchases are a passing trend need to reconsider their position.

Overcoming the Online Adversity

In study after study, experts found that Millennials and Gen-Xers value interaction with brokers and agents, if not in sit-down meetings, then by email, personalized text messages and correspondence through agency websites. The key is engagement.

The Gallup Poll surveyed 18,000 adults and concluded: “Insurance companies see substantial business gains when they engage customers of any generation. Engaged insurance customers are less sensitive about pricing…they spend more and buy a wider variety of products, including financial offerings.”

You can overcome challenge of the internet but it will take determination to engage your customers one way or another. Customers still want to hear from you. Do you have the grit to reach them?

Contact Scott Burrows, Insurance and Financial Services Sales Motivational Speaker through this website or call us at: (520) 548-1169

 

 

 

 

 

 

 

 

 

 

 

Are You Overcoming Adversity to Reach an Underserved Market?

Prior to my career as a business keynote speaker, I worked as a top producing sales agent for disability insurance and wealth planning. The same mindset I applied to overcome my diagnosis as a quadriplegic later landed me a highly competitive spot in the Million Dollar Round Table. No matter what issues are facing your growth as an insurance or financial services professional – staying focused and resilient, MOVING with change instead of resisting it, and thinking outside of the box to overcome market challenges will move you into success even when obstacles seem insurmountable.

In November 2017, the Millman Annual Survey of the U.S. Individual Disability Insurance (IDI) industry outlined several obstacles to the growth of the insurance market. One of the problems was the perceived difficulty in expanding the market beyond traditional occupations. Yet, the survey found numerous opportunities for disability insurance sales to non-physician professionals, the self-employed, those in skilled trades, small and medium-sized businesses and millennials, especially women between 18 and 34, unaware they may be able to utilize DI to supplement their incomes while on maternity leave.

Looking at just the self-employed contractor, many are millennials who work remotely. Comparing 2017 to 2016, there was an 11 percent jump in this area of the workforce. While the annual growth has declined to 5 percent, the category is outpacing many other areas. How many are there? Incredibly, more than 44 million. They are underserved.

A poll was conducted by the Harris organization of more than 2,100 adults who lacked disability insurance. Forty-three (43) percent said the reason they did not have it was that their employers did not offer it. Only 14 percent of that number couldn’t afford coverage.

Given the data and the opportunities, why aren’t more people being sold disability insurance?

The Disability Insurance Gap

Joe Russo is an underwriter and account executive and recently wrote an article for the National Association of Insurance and Financial Advisors. He said disability insurance was “an often overlooked and undervalued sector of the greater life and health insurance industry.”

He noted that some agents may “dabble” in DI but few of them lack the understanding that “the DI insurance marketplace is where we find newer and greater options than in any other sector.”

Why does it seem as though agents are unwilling to overcome the adversity of, as Joe Russo described it, “looking outside the little box” to sell disability insurance? It is a matter of comfort zone.

As a salesperson, it takes courage to overcome a sense of complacency. Russo writes: “DI doesn’t sell itself. The insurance producer is the most important part of the sales equation. Your wholehearted belief in the product is key in relating to your clients.”

He urges agents to go the extra mile. Leaving a brochure or putting a link to disability insurance on a website isn’t enough. An email blast isn’t enough, nor are phone calls or newsletters.  It is all of the above, along with magazine articles, mailers, social media and a heavy dose of personalized attention.

What I Know All Too Well

Some believe that their paychecks will never stop because they are invulnerable. Russo stated “the average American has somewhat of a ‘Superman’ complex, (that) the risk of becoming totally disabled and not being able to work is slim to none…that this is a complete fallacy.” I personally know that better than most.

We need paycheck protection if catastrophe strikes. As a disability insurance salesperson, what is your vision for reaching those who lack protection? Is it not worth leaving a comfort zone to protect your clients? By overcoming adversity, we can work wonders in sales and in life. Don’t miss the chance to make a real difference.

 

Contact Scott Burrows, Keynote and Breakout Speaker on Disability Insurance Sales today through this website or call us at: (520) 548-1169