There's a new middleman life advisors will have to cozy up to in order to snag coveted gen X and Y clients, according to groundbreaking research.
There's a new middleman life advisors will have to cozy up to in order to snag coveted gen X and Y clients, according to groundbreaking research.
“There are plenty of opportunities at the workplace for insurance companies to connect with today’s younger shoppers,” said Ron Neyer, assistant research director, LIMRA Distribution Research. “Most workplace life sales are simply triggered by an offer to purchase an employer-sponsored plan.”
The recent LIMRA study found that 75 per cent of workplace life insurance customers belong to either Generations X or Y.
“Younger, less experienced buyers typically do not have financial advisors, so they tend to look to different information sources compared to older customers,” said Neyer. “Workplace life insurance buyers are also more likely to be first-time customers of individual life insurance, and about a quarter have never had a general discussion with someone who represents the industry.”
While there are differences between these customers and those who buy outside of the workplace, the majority of both groups live in households with annual incomes of more than $50,000.
The report, Shopping for Life Insurance: Seeking Simplicity at the Workplace, revealed workplace customers are more often single, and they don’t do a whole lot of shopping around after being presented with an option at work. In fact, 62 per cent consider only one offer, and only one in six explores a third option. “For workplace buyers, the search for life insurance frequently begins and ends at work,” said Neyer. “Many rely on their employers’ expertise for carrier selection.”
“There are plenty of opportunities at the workplace for insurance companies to connect with today’s younger shoppers,” said Ron Neyer, assistant research director, LIMRA Distribution Research. “Most workplace life sales are simply triggered by an offer to purchase an employer-sponsored plan.”
The recent LIMRA study found that 75 per cent of workplace life insurance customers belong to either Generations X or Y.
“Younger, less experienced buyers typically do not have financial advisors, so they tend to look to different information sources compared to older customers,” said Neyer. “Workplace life insurance buyers are also more likely to be first-time customers of individual life insurance, and about a quarter have never had a general discussion with someone who represents the industry.”
While there are differences between these customers and those who buy outside of the workplace, the majority of both groups live in households with annual incomes of more than $50,000.
The report, Shopping for Life Insurance: Seeking Simplicity at the Workplace, revealed workplace customers are more often single, and they don’t do a whole lot of shopping around after being presented with an option at work. In fact, 62 per cent consider only one offer, and only one in six explores a third option. “For workplace buyers, the search for life insurance frequently begins and ends at work,” said Neyer. “Many rely on their employers’ expertise for carrier selection.”
