Life Insurance Sales Set a Record in Q1 2017

Posted by Michelle McKinley on Wed, Jun 21, 2017

Life Insurance Sales Resulted in Record High Q1 Numbers

First quarter indexed life insurance sales were $446.5 million. That number is down 16% compared to Q4, but up over 3.4% compared to Q1 2016. “This quarter, indexed life insurance sales were greater than they have ever been in any first quarter, since their introduction 20 years ago,” said Sheryl J. Moore, President and CEO of both Moore Market Intelligence and Wink, Inc. When asked about the life insurance sales decline from last quarter Moore said, “I don’t find the sales decline from last quarter remarkable; that is just a cyclical trend in sales of life insurance products.”

The Wink Sales & Market Report is the insurance industry’s number one resource for indexed life insurance sales data since 1997. It recently expanded to included fixed universal life insurance and whole life products. One hundred life insurance carriers participated in the 79th edition of the report.

Total Q1 non-variable universal life insurance sales were even higher at over $930.3 million. Non-Variable universal life insurance sales include both indexed and fixed universal life insurance product sales.

The survey named Prudential as the number one carrier overall for non-variable universal life insurance sales, with a market share of 6%. Transamerica took second place for non-variable UL, but did have the number one selling product for non-variable universal life insurance sales for all channels combined in the first quarter. Transamerica retained the number one ranking for indexed life sales with an 11.2% market share.

Additional life insurance products will be added to Wink’s Sales & Market Report in coming quarters. The firm will be focusing on increasing participation with their current product lines of indexed universal life insurance, traditional universal life, indexed whole life and traditional whole life insurance product sales.

Now is the time to expand your life insurance business. Grow your insurance sales with exclusive life insurance leads for agents from Parasol Leads. Learn more about our life insurance lead generation services today.

 

Tags: insurance sales, exclusive life insurance leads, life insurance leads

Life Insurance Premium Trends and What They Mean for Your Life Insurance Leads

Posted by Michelle McKinley on Tue, Jun 20, 2017

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Life Insurance Sales and Premiums Are Up

Now is a great time to be selling life insurance. Premiums and sales are on the rise, but what does it mean for life insurance lead generation? The best life insurance leads for agents are exclusive and come from targeted marketing efforts. As more and more agents make the switch to life insurance sales, will the pool of exclusive life insurance leads dry up?

The individual life insurance new annualized premium increased 5% in Q1 this year compared to Q1 2016, according to LIMRA’s First Quarter 2017 U.S. Individual Life Insurance Sales Survey.

About 60 percent of the companies participating in LIMRA’s survey reported sales growth, including nine of the top 10 insurance carriers. “U.S. individual life insurance premium sales increased all but one year since the Great Recession in 2009, and 2017 has started off solid with growth across every product line except for variable universal life,” according to Ashley Durham, associate research director, LIMRA Insurance Research. “LIMRA expects growth to remain positive throughout the year, with whole life and universal life insurance continuing to drive results.”

While individual life insurance grew, the total number of policies sold in Q1 decreased 2%, compared with the same quarter in 2016. Variable universal life insurance premiums fell 3% in Q1.

Whole life insurance products continue to enjoy positive growth numbers. In Q1, whole life insurance premiums grew 7%, with eight of the top 10 insurance companies reporting growth. Whole life insurance premiums have increased for the past 11 years. Term life insurance premiums also saw an increase after declining in Q4 of last year.

Take advantage of the current state of the market. Now is the time to purchase exclusive life insurance leads. For the best life insurance leads for agents, contact Parasol Leads and become a lead buyer. Our leads are competitively priced, high quality and convert. Leverage the demand for life insurance, and become a top seller with life insurance leads from Parasol Leads.

Tags: exclusive life insurance leads, buying life insurance leads, life insurance leads

How Difficult is it to Sell Life Insurance?

Posted by Michelle McKinley on Thu, May 18, 2017

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The Challenges People Face When Choosing a Career in Life Insurance Sales

Seasoned life insurance agents know the struggle to sell all too well. Life insurance industry analysts place the burnout rate for first-year life insurance agents at higher than 90 percent. That’s fewer than one in every 10 people who begin a career in life insurance sales remains in the business for longer than a year.

Life insurance sales is challenging for agents for a number of reasons. For starters, the compensation is usually entirely commission based. It’s difficult to find qualified customers, and insurance companies can provide few life insurance leads. If that didn’t make life insurance sales hard enough, even when you do get exclusive life leads, the product itself can be hard to sell. Unlike other insurance products, life insurance doesn’t provide instant gratification that leads to impulse purchases.

While new life insurance agents face many challenges, there are benefits to choosing life insurance sales as a career.

  • Life insurance sales agents are in high demand
  • Commission percentages for life insurance sales are higher than other insurance sales
  • Life insurance agents get paid commission on renewals for every year the policy is enforced, creating an additional income stream

Here are some pros and cons to life insurance sales careers:

Commission-Based Income

Pro: Most life insurance agents are considered independent contractors which means they don’t receive a salary or benefits. The benefit to not being considered an employee, is that a company cannot force you to work set hours. As a life insurance agent you can work at your own schedule, but life insurance sales does take a lot of work, especially in the beginning.

Con: You only earn when you sell. You often don’t receive benefits.

You Must Acquire Life Insurance Leads

Pro: Some insurance agencies will provide you with exclusive life leads to help you sell. You can purchase exclusive life insurance leads for agents from life insurance lead generation companies.

Con: Life insurance is a competitive industry. Finding qualified life insurance leads is no easy feat. Many life insurance lead companies sell both exclusive and non-exclusive leads. Exclusive insurance leads can be expensive, and non-exclusive insurance leads have been sold to multiple life insurance agents. Employers who provide exclusive insurance leads often pay a lower commission, because they have to pay for insurance leads or lead generation services.

Life Insurance Sales

Pro: After time, you’ll learn how to pitch life insurance. There are multiple resources life insurance agents can use to help pitch and sell life insurance.

Con: Even when pitching to a qualified prospect, you can’t assume the sale will be an easy one. Life insurance is a difficult product to sell, because you have to bring up the topic of death.

If you’re starting a career in life insurance sales, and having trouble acquiring insurance leads contact Parasol Leads. We generate thousands of qualified life insurance leads each day for our agents across the country. We sell both non-exclusive and exclusive life insurance leads for agents. Spend less time prospecting for exclusive life leads, and buy life insurance leads today.

Tags: exclusive life insurance leads, life insurance lead generation, life insurance sales

Vehicle Deaths Estimated to be Highest in Nine Years

Posted by Michelle McKinley on Tue, May 16, 2017

How Increased Vehicle Deaths Affect Life Insurance and Auto Insurance Companies

A recent study shows that an estimated 40,200 people died in automobile accidents on the road in 2016. That’s a six percent increase over the previous year, and a fourteen percent increase since 2014. It’s the highest two-year increase in more than 50 years. October 2015 saw the most auto deaths, but the highest year over year increase came in February.

Lower gas prices and an improving economy contributed to a three percent increase in vehicle mileage, but distracted driving and other risky driving behaviors are to blame for the uptake in accidents according to analysts. According to the National Safety Council survey, sixty-four percent of drivers are comfortable speeding, while forty-seven percent are comfortable texting while driving. While drivers often believe that voice-command texting is safe, it can take over 15 seconds to complete which exceeds the safe level of interaction time.

The cost of these deaths, injuries and property damage is estimated to be about $432.5 billion over the course of last year.

As the amount of accidents, and their severity increases, so does the cost insurance companies have to payout through auto insurance and life insurance claims. As a result, insurance costs will rise, which can make it difficult to sell policies.

If you are an independent auto or life insurance agent, Parasol Leads can help you increase insurance sales with life insurance leads. With exclusive life insurance leads for agents, you can spend less time prospecting, and more time on the phones converting leads into sales. Whether you’re looking for exclusive life leads or shared leads, Parasol Leads generates the best life insurance leads for our clients. Set your own filters, and buy insurance leads that fit your needs.

While the increase in claims and severity may be on the rise, your auto and life insurance sales can be on the rise as well with help from Parasol Leads.

Tags: exclusive life insurance leads, life insurance lead generation, life insurance leads, life insurance sales

Why Some Water Damage Claims Aren’t Covered

Posted by Michelle McKinley on Fri, May 12, 2017

Know the Ins & Outs of Homeowners Insurance Before You Sell It

Water damage can come from several sources, which means it can fall under different areas of coverage. Natural flooding is considered to be very different from standard water damage and is covered under separate insurance policies. When you receive a homeowner’s insurance claim, look for these things to judge the claim correctly according to the owner’s insurance policy.

Was the water damage gradual or sudden?

Homeowner’s insurance is meant to protect homeowners from sudden unexpected damage to the home. Water damage can build up for a long time before it becomes obvious to the owner, making it difficult to assess if the damage was gradual or sudden. For example, the policy holder may file a claim for a crack in a foundation, but if the crack wasn’t found and water seeps into the basement and causes damage that might not be covered because it was considered gradual. Another example would be if there is a slow faucet leak under a sink that eventually causes damage to the sink.

Sudden damage can include a pipe breaking that leads to a flood, or a tree coming through the roof of a home after falling in a storm and allowing water to enter.

Check the policy

The homeowner’s insurance policy will be the deciding factor of whether or not secondary damage is covered. Some states require insurance companies to cover secondary mold damage caused by legitimate water damage claims. Your adjusters should know the exceptions and to understand exactly what the policy covers.

Water damage vs flooding

Most homeowner’s policies cover sudden water damage except for flooding. Flooding is not covered by most homeowner’s insurance. Flood insurance is a separate requirement. The definition of flooding in insurance terms is the moment water from a natural source touches the ground. Insurance adjusters need to get a clear idea of what the water source was before adjusting an insurance claim. Don’t automatically deny a claim when you hear the word flood.

Making a judgment

When making a judgment on a homeowner’s insurance claim, ask for evidence. Ask for any home maintenance records, descriptions and photos. It’s also important to interview professionals who worked on the situation prior to your examination. Then use your experience and the policy to dictate whether or not the insurance claim is covered.

Ready for more homeowner’s insurance leads? Parasol Leads is a top insurance lead generation company, providing insurance agents and brokers with high quality homeowners insurance leads that convert. Contact us today to learn more about our homeowners insurance lead generation practices, and how you can buy insurance leads from Parasol Leads. Grow your insurance business today.

 

Tags: buy home insurance leads, home insurance leads, homeowners insurance

The Challenge with Personal Auto Insurance

Posted by Michelle McKinley on Thu, May 11, 2017

What Auto Insurers and Indpendent Agents Need to Know

Personal auto has generated poor results in recent years, and for many it’s not surprising. Factors that have contributed to the decline include more cars on the road driving further, increased medical costs, higher repair costs for newer vehicles, and distracted driving. “The industry enjoyed a long period of low claims frequency and mild severity. As the U.S. emerged from the Great Recession, claims frequency began to increase. Insurers reacted by raising rates, but then, more recently, severity spiked,” according to Jim Lynch, chief actuary and vice president of research and information services at the New York City-based Insurance Information Institute.

How Frequency and Severity Play a Part

The frequency and severity of auto accidents hit the personal auto insurance industry hard. Responsibility for increased frequency has been placed on people returning from work as the economy recovered after the Great Recession. About 40 percent of miles driven occur during daily commutes, with many accidents occurring during rush hour, according to Lynch. As people lost jobs during the recession, fewer cars were on the road. Lower gas prices have also increased the amount of traffic on the road. As a result, frequency increased more than 7 percent between 2013 and 2015, according to white paper released in October 2016 by the Insurance Information Institute.

While frequency has slowed since 2015, auto insurers have seen severity increase 5 percent annually over the past two years. Tyler Asher, president of Safeco Insurance cites a jump in fatalities, higher medical costs and costlier vehicle repairs as the reasons behind the increased severity.

The Cost of Repairs

In a Q4 presentation, Liberty Mutual compared repair costs for minor front-end damage on the same make and model for entry-level sedans built in 2014 and 2016. The 2014 model cost $1,846 to repair, while the 2016 model cost almost double at $3,551, according to the presentation. Tracy Dolin-Benguigui, director at S&P Global Ratings believes it’s not only the higher costs to repair new technology in cars, but the specialized labor required to fix sophisticated technology that’s raising the overall cost of vehicle repairs.

Less Safety

New safety features in today’s cars haven’t translated into safer driving according to Dolin-Benguigui. Industry professionals believe distracted driving is contributing to the frequency and severity of auto accidents – not just from drivers texting and driving but from the growing number of gadgets in vehicles. “More people are driving more miles, so there are more distracted drivers for longer periods of time on the road,” says Neil Alldredge, senior vice president, Corporate Affairs, for the National Association of Mutual Insurance Companies (NAMIC).

If there’s one take away for personal auto, it’s that auto tech will continue to play a major part, both on the insurance side and with respect to vehicles covered. Insurers will need to find new ways to underwrite risks and insure and engage with customers. For independent insurance agents, industry experts suggest using comparative raters to help them stay competitive with direct writers and captive agents in terms of how quickly they are able to turn around quotes.

Tags: auto insurance leads, personal auto insurance, auto insurance

5 Uses for Life Insurance to Help You Sell Life Insurance

Posted by Michelle McKinley on Thu, Apr 13, 2017

Include these benefits when pitching life insurance to clients or prospects

Life insurance is one of the trickiest insurance products to sell. Unlike auto and health insurance, there are no laws that require you to be covered in the event of a tragedy. For this reason, it can be harder to generate life insurance leads – in addition to their complexity.

Life insurance is a fundamental part of a responsible and reliable financial strategy. Unfortunately, 49% of the adult population doesn’t have any kind of life insurance. Many of these consumers don’t see the value in life insurance – because it’s too expensive, too complex or impossible for them to understand. This dangerous view of life insurance, leaves their families unprotected in the event of a tragedy. As a life insurance agent and marketer, this means that there are plenty of prospects out there who are still in need of coverage.

One of the reasons people don’t invest in life insurance is because they think it has limited use such as covering funeral costs or paying off a mortgage. Fortunately, the opposite is true. Life insurance is highly versatile, customizable and often perfect for creating a comfortable financial cushion for the future.

As a life insurance agent, you know this – but in many cases your insurance prospects won’t. Here’s a look at some of the uses for life insurance that many people haven’t considered to help you sell more life insurance.

Equalizing Inheritances

Not too many of us have enough property or money put away to leave behind a large inheritance – but even if your clients do, it can be difficult to provide an equal inheritance to multiple people (spouses, children, close family members, partners). Life insurance provides a solution to this problem. It allows the client to give the monetary value of an asset to one heir, while leaving the asset itself to another heir. So rather than having to liquidate an asset to distribute the cash among the family, life insurance can provide a cash value equal to that of the asset itself. A business owner can therefore give a business to one of his/her children, while also giving the cash value of a business to the other child uninterested in running a company.

Protecting Your Business

If your client runs a business, they can use their life insurance “cash value” generated from their long-term investments to pay the premiums on a corporate-owned life insurance policy, or COLI. A COLI policy gives businesses the opportunity to fund benefit plan expenses, while increasing net income for the company overall. Companies that have substantial costs to pay out for group life, medical and other insurance plans can finance these costs with COLI. They can earn a competitive after-tax yield when compared to other investments, act as a hedge against benefit liabilities, match the long-term nature of benefit expenses, and more. COLI death benefits can help your client’s company recover the costs of the plan over the long-term. Corporate packages can offer several advantages that other policies can’t match while promoting growth and limited risk.

Tax-Free Loans

Life insurance policies can offer policy holders a tax-free solution to their financial needs, upon the insured’s death. While the client is living, it’s sometimes possible to take tax-free loans from the cash value of the policy. While the client will have to pay interest on these loans, they will not pay taxes on the money received. With some policies, the interest rate can be lower on this type of loan than a traditional bank loan.

Replacing Income

Clients may be able to withdraw funds from their life insurance cash value as a source of additional income to cover a wide range of costs from mortgage payments to healthcare bills. Some financial planners suggest using life insurance to cover estate taxes so their other investments can continue to thrive, unimpeded by taxes, beyond the death of the insured.

Planning for Your Legacy

Life insurance can be used to help a business partner maintain the business after a client’s passing; in addition to, helping their family cover costs when they have passed. As a tax-free source of money, the policy recipient can use the life insurance to pay everything from charitable contributions, to paying off debts.

Knowing the many ways clients can use life insurance can help you sell life insurance to new prospects, as well as cross sell to existing clients.

Now that you’ve got a strategy for growth, sign up to become a life insurance lead buyer with Parasol Leads. By buying life insurance leads from Parasol Leads, you’ll have a steady stream of life insurance leads to work, eliminating time spent prospecting for leads. You’ll also reduce your marketing costs. Learn more about our life insurance lead generation efforts, how to buy life insurance leads, our filters and more by contact us today.

Tags: exclusive life insurance leads, buying life insurance leads, life insurance lead generation, life insurance leads, life insurance sales

LinkedIn Insurance Lead Gen Forms

Posted by Michelle McKinley on Wed, Apr 12, 2017

Take advantage of LinkedIn’s newest tool for Insurance lead generation 

LinkedIn continues to be a great source for organic leads, but paid marketing on LinkedIn isn’t always as profitable. Cost per click is much higher on LinkedIn, compared to other social media platforms, but is the traffic better?

A recent study by HubSpot found that traffic from LinkedIn generated the highest visitor-to-lead conversion rate (2.74%) almost three times higher than both Twitter and Facebook. LinkedIn also topped social media leads overall, which included traffic that came to business’ website from all social media other than LinkedIn.

LinkedIn for Insurance Leads

LinkedIn is a great tool for B2B marketers, because people join the social network to showcase their career, work expertise, and find content and information to make their lives better. That makes it the perfect place to target other businesses.

While LinkedIn is a great source for networking and reaching companies where you can sell employer benefits, health insurance, etc. generating insurance leads through paid efforts can be challenging.

LinkedIn has been working to improve ROI for B2B and lead generation marketers for years. Their most recent effort is called LinkedIn Lead Gen Forms. But will these forms work for insurance lead generation?

What are LinkedIn Lead Gen Forms?

If you haven’t run a Sponsored Content campaign on LinkedIn, it’s a way for businesses to promote posts and content. Similar to Facebook post boosting, with a LinkedIn Sponsored Content campaign you can set a target audience, and ensure that audience sees your posts by putting budget behind it. Unlike Facebook where a budget of $5 can get you a decent amount of engagement, the cost per engagement is much higher on LinkedIn.

To help marketers generate leads, and encourage marketers to increase sponsored content budgets, LinkedIn has found a way to make lead generation easier.

With LinkedIn Lead Gen Forms, you can create a custom form that includes the fields you require for conversion. You must first post to your company page, then select which posts you wish to sponsor/promote. After you’ve selected your posts, you’ll have the ability to add a form. You can customize your form with your logo, custom fields, short description, and Thank You page with a URL.

According to Divye Khilnani, who works on product management for LinkedIn, the professional network found that 80% of engagement comes from mobile devices, where lead generation is challenging. To make it easier for visitors to complete a form, LinkedIn prepopulates fields using up-to-date information from the user’s LinkedIn profile. LinkedIn Lead Forms are only served on the mobile app currently, but will be expanding to desktop later this year.

According to feedback from a LinkedIn survey of 50 B2B marketers, 90 percent beat their cost-per-lead goals with the new lead gen forms. They also saw a lower cost per lead with lead gen forms than with the standard Sponsored Content campaign.

Parasol Leads can help with your insurance lead generation efforts. We sell insurance leads for several products including:

Health insurance leads

Life insurance leads

Home insurance leads

Auto insurance leads

Annuity insurance leads

Medicare leads

Want to learn more about how we generate high quality insurance leads? Contact us today and follow our blog.

Tags: auto insurance leads, insurance lead generation, insurance marketing

MetLife Study Shows Growth in Employer Nonmedical Benefits

Posted by Michelle McKinley on Tue, Apr 11, 2017

More employers are open to a wider range of benefits

Employers may be more open to hearing about everything benefits brokers have to offer. Analysts at MetLife Inc. shared results from a recent survey that showed that buyers’ level of interest increased by 7 to 11 percentage points between 2015 and 2016.

The company surveyed about 2,504 benefits buyers at U.S. firms with at least two employees. The MetLife survey team asked benefits buyers about their level of interest in hearing from brokers about 16 topics.

The Affordable Care Act has imposed complicated benefits richness, employee counting, benefits reporting and penalty rules on employers, which has led to the increase in employer interest. In 2015, just 7% wanted to hear about the new benefits. One year later, 64 percent said they are interested in learning more.

The percentage of employers who said they want to hear about nonmedical benefits, such as dental or disability insurance rose 10 percentage points to 58 percent. Another hot topics for employers is global benefits. The percentage of employers interested in global benefits solutions jumped 9 points from 41 percent to 52 percent.

Global benefits ranks last in terms of employer interest, but more employers wanted to hear about global benefits in 2016, than wanted to hear about physical wellness programs in 2015 – according to the study.

Tags: employer benefits, Affordable Care Act, Health insurance, Obamacare

Discover What New Trends are Impacting the Insurance Industry

Posted by Michelle McKinley on Sat, Apr 08, 2017

Top Trends Impacting the Insurance Industry

A recent CCC Information Services Inc. report examines a number of trends affecting the auto collision industry, as well as aspects of property and casualty insurance. Technology continues to be a huge change driver for consumers, insurers, repairers and the auto insurance industry in general.

It impacts insurance lead generation, and how agents can attract and close insurance prospects. Whether it’s changing how these players communicate, their expectations or the vehicles themselves, its impact is wide ranging, according to the 2017 Crash Course report.

How consumers use technology affects their expectations of insurers and other vendors they interact with on a regular basis. The report identifies a number of other factors that are changing the auto, insurance and repair industries including:

Younger, more diverse and digitally connected consumers

The U.S. population increased from 193 million in 1965 to 324 million in 2015. Fifty five percent of that growth consisted of individuals from foreign countries. For insurers, this influx means more possible policyholders who may have different views on insurance, require some education on their risks, and want to engage through different sales and service channels.   

Almost sixty percent of Hispanics are millennials which means they have unique expectations as consumers compared to other groups. Millennials now comprise the largest generation of the general population, and are more independent in a number of areas than baby boomers or Gen Xers. A recent study by Novarica identified millennials as researching items before purchasing them, frequently buying online, and preferring digital channels. Their preference for digital channels has to do with speed, flexibility and ease of use. Social media and chat options also matter greatly to millennials, while the telephone is still the preferred method of communication for older policyholders.

A Preference for Digital Processes

Consumers prefer to use digital channels for the claims process, according to the Accenture Claims Customer Survey 2014. Millennials went as far as to say they would switch insurance carriers if theirs did not provide a digital claims process. Millennials also value advice and assistance during the insurance purchase process. In its study, Accenture found that 80% of survey respondents said they would switch insurance carriers if theirs did not offer any type of guidance. They are also willing to pay for guidance. Demonstrating that millennials still need help understanding their insurance options.

Increase of Trucks on the Road

As the number of consumers who shop online increases, the more freight that needs to be transported. Trucks continue to be the preferred method for the transportation of freight. The U.S. Department of Transportation predicts a 40% increase in the amount of freight being moved in the next 30 years, while the actual value of the shipments will increase 92%. Growth in urban areas, and an increase in the number of vehicles – both private and commercial – on the road, increases the risk for all drivers.

Longer Lasting Cars

Today’s cars last longer than ever before, and fewer cars are being taken out of service each year. The number of vehicles over 16 years old is expected to grow to 30% or 81 million vehicles by 2021 according to IHS Markit. As a result, the insurance industry would see an increase in newer age vehicle claims where total loss frequency is lower, but repair costs are higher. In addition, the increase in older vehicles on the road could mean that more vehicles are totaled when involved in a collision, further increasing the costs associated with total loss claims.

Changes to the way consumers buy insurance will impact the way you market your insurance products. Parasol Leads can help with insurance lead generation services. Contact us today to learn more about our insurance leads, our insurance lead generation practices, and how to sign up to buy insurance leads. 

Tags: auto insurance leads, insurance industry, Insurance industry news