In the second quarter of 2019, the average life insurance sales in the U.S. went static. From 2018’s 4% drop to this year’s 5% decrease, according to U.S. Retail Individual Life Insurance Sales Survey, LIMRA.
Let us go through the different reasons or challenges Life Insurance companies have encountered over the years. Here are four reasons why life insurance sales declined in 2019.
Let us go through the different reasons or challenges Life Insurance companies have encountered over the years. Here are four reasons why life insurance sales declined in 2019.
Trust Issues Ensued
Many insurance firms do not live up to their business’ mission and vision. With disputes going unsolved and unpaid monetary claims left hanging, it makes customers think that paying for these insurances is a waste of money and time. It boils down to taking good care of your customers/clients from the beginning.
Lots of Competition
Let’s face it, with the growing number of insurers today, everybody is trying to be the best there is. “Survival of the fittest” is what they call it. Some of those who can’t keep up with the challenges and the race will obviously shut down. Start-up insurance companies are in bigger and more intense challenges because they must establish themselves against the well-known and famous insurers. Considering the ups and downs of the economy, retaining the trust of your clients is important.
An Unstable Economy
When the economy is on a downhill ride, everything else goes down with it and that includes insurance companies. When this happens, some would resort to price increase and no customer would ever want to pay for something that they think is an extra expense.
Company’s Poor Management
Complaints going up because of unresolved issues from customers could lead to a bad reputation in the company. If management leaves that problem hanging, the tendency is that word of mouth against your company could spread instantly. Incompetence on the management side is definitely going to affect your insurance business’ as a whole. If the ones making the decisions in your insurance firm is unequipped meaning without proper training and experience, then the risk of bankruptcy is high.
With all the considerations you have, make sure to do a background check on the insurance firm first. See if the company has good reviews, well established and financially stable.
At Cornerstone Insurance Agency, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (770) 413-0807. You can also request a free quote by CLICKING HERE.
Many insurance firms do not live up to their business’ mission and vision. With disputes going unsolved and unpaid monetary claims left hanging, it makes customers think that paying for these insurances is a waste of money and time. It boils down to taking good care of your customers/clients from the beginning.
Lots of Competition
Let’s face it, with the growing number of insurers today, everybody is trying to be the best there is. “Survival of the fittest” is what they call it. Some of those who can’t keep up with the challenges and the race will obviously shut down. Start-up insurance companies are in bigger and more intense challenges because they must establish themselves against the well-known and famous insurers. Considering the ups and downs of the economy, retaining the trust of your clients is important.
An Unstable Economy
When the economy is on a downhill ride, everything else goes down with it and that includes insurance companies. When this happens, some would resort to price increase and no customer would ever want to pay for something that they think is an extra expense.
Company’s Poor Management
Complaints going up because of unresolved issues from customers could lead to a bad reputation in the company. If management leaves that problem hanging, the tendency is that word of mouth against your company could spread instantly. Incompetence on the management side is definitely going to affect your insurance business’ as a whole. If the ones making the decisions in your insurance firm is unequipped meaning without proper training and experience, then the risk of bankruptcy is high.
With all the considerations you have, make sure to do a background check on the insurance firm first. See if the company has good reviews, well established and financially stable.
At Cornerstone Insurance Agency, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (770) 413-0807. You can also request a free quote by CLICKING HERE.
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