Any client engagement resource (that takes into account the clients age, their budget and provides a visual demonstration of what types of insurance cover and what levels insurance should be considered) is based on research on the client psychology of insurance purchases. Studies show that the way to maximise matching insurance solutions appropriately with clients is achieved by clearly advising clients on their life insurance needs with process and openly discussing a clients budget. In fact a doubling of coverage purchased is possible versus advisers who don't provide this sort of engagement.
Data from the Life Insurance and Market Research Association (LIMRA) allows a glimpse into the mind of the life insurance buyers and provides guidance on what works and what doesn't. In a LIMRA study the buying psychology of 3000 life insurance buyers was analysed and it was found that:
- face to face engagement and a needs analysis that was process driven and utilised social proof provided conversions of 73%
- communication effectiveness : the right communication channels with the right clients has a strong correlation with insurance purchases
- online offers were less effective without the opportunity to use visual triggers
- effectiveness was increased when using processes that defined what the types of insurances do and what they can provide when faced with life traumas
But importantly the data took into account the consideration of what the client could afford. When this was not discussed, prospects felt pressured. Using a tool that openly considered and classified budget issues mitigates these negative perceptions and emotions.
The robustness of process was also found to have an impact in a manifestly positive way on the propensity of a client to refer.
Overall however three keys came out of the research that bring us to the core of why clients buy insurance after being advised in a meaningful way:
1) determining if they are getting their money's worth for the cover they are buying versus the risk they face
2) being able to understand the types of cover they have been recommended
3) being able to understand the reasons for the amounts of cover they have been recommended
High income earners raised these three areas as the top of mind considerations.
Risk advisers are faced with the challenge of engaging clients in a meaningful way that not only produces the best outcome for a client in that they are adequately insured but that they are also compelled to refer their social circle to the advisers services. That's the way to ensure that Australians are adequately insured and we address the mis and underinsurance issues. Education and demystification of insurance is key. The value of insurance and the demonstration of such is absolutely paramount. The way to do that is remembering at our core what it is that we are providing. Clients may buy and we make talk about and insurance policy, but what we are selling and what they are buying is simple : it is the peace of mind that when faced with one of lifes risks that the right money goes to the right people at the right time. That's it, it is no more complicated than that and it is what great insurance advisers know and focus on doing well.
When a client is seated with their adviser the core drive they are seeking to meet is the drive to defend, and it is by engagement, communication, storytelling of lifes risks and the proper positioning of an insurance solution that meets and fulfils this drive. The research into human behaviour shows that people who are able to fulfil this drive have greater life satisfaction than those who have not. Remember what we do at our core as life insurance providers and putting process around this conversation and engagement in a way that is meaningful in the context of a life risk discussion is something not to be distracted from are we as an industry to be successful in ensuring more Australians have the vital cover that they need.
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