COVID-19 Drove Insurance Sales In Past Year, MDRT Survey Showed

The COVID-19 pandemic was one of the biggest drivers – if not the biggest driver – of the insurance market in the last year and a half. That’s the word from a recent survey taken on behalf of the Million Dollar Round Table.

The survey revealed that 42% of Americans who acquired new insurance policies since March 2020 said the COVID-19 pandemic was a factor in their decision, higher than all other options. Among those, more than half (51%) said it was the primary factor in their decision. Another 41% said it was a major factor in their decision.

Other reasons for acquiring new policies included wanting to provide for family (36%), a major life event (29%) and new personal concerns about potential future disability or long-term care needs (27%).

The top reasons for acquiring new policies among Americans with financial advisors were COVID-19 (55%); marriage, divorce or a new child (43%); wanting to provide for their family after death (39%); and new personal disability or long-term care concerns (29%). Among Americans without advisors, top reasons for new policies were COVID-19 (39%); wanting to provide for their family after death (34%); new personal disability or long-term care concerns (21%); and marriage, divorce or a new child (16%).

A majority of Americans are more anxious about early death, becoming disabled or needing long-term care, the study showed.

More than half (54%) of Americans said that COVID-19 has made them more anxious about dying early, becoming disabled or needing long-term care, including 21% who said COVID-19 has made them much more anxious. Six out of 10 of Americans with at-home dependents said COVID-19 has made them more anxious about dying early, becoming disabled or needing long-term care, compared with 50% of Americans without at-home dependents. More than one-third (38%) of Americans said the pandemic has not changed their thoughts on dying early, becoming disabled or needing long-term care. Only 8% of Americans said COVID-19 has made them less anxious.

Many Americans said the pandemic motivated them to acquire or maintain insurance policies when they can afford them.

Three in 10 Americans said the COVID-19 pandemic has made them feel more driven to acquire or maintain life, disability and long-term care insurance. This includes 41% of Americans with at-home dependents and 26% of Americans without them.

Similar shares of Americans with advisors (31%), Americans without advisors (31%) and Americans who formerly had advisors (32%) said the pandemic has made them feel more driven to acquire or maintain coverage.

Americans with at-home dependents are more likely to have acquired life, LTC, disability and health insurance since March 2020.

More than one-third (36%) of respondents who have insurance said they acquired at least one new policy since March 2020, including 52% of Americans with dependents at home and 23% of Americans without dependents at home. More than one-quarter (26%) of Americans with at-home dependents said they acquired a new life insurance policy since March 2020, compared with 10% of Americans without at-home dependents.

Of those with at-home dependents, 12% said they acquired a new long-term disability policy since March 2020, compared with 5% of Americans without at-home dependents. Eleven percent of Americans with at-home dependents said they acquired a new long-term care insurance policy since March 2020, compared with 3% of Americans without at-home dependents.

More than one-third (35%) of Americans with at-home dependents said they acquired a new health insurance policy since March 2020, compared with 20% of Americans without at-home dependents.

However, this may be more of a reflection of the chaotic employment situation in 2020 than proactive financial planning.

Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at Susan.Rupe@innfeedback.com. Follow her on Twitter @INNsusan.

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Susan Rupe is editor in chief, magazine, for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at susan.rupe@innfeedback.com.