Days Of Just Selling Life Insurance ‘Coming To An End,’ Analyst Says

Holistic planning and financial wellness are two of the themes that life insurance agents can expect to see in their business in 2019, according to an industry analyst.

“I think the pressure on the agent is to be more to their clients. The theme is financial wellness,” said Ed Majkowski, Americas Insurance Sector and Advisory Leader at EY.

“The days of just selling life insurance are coming to an end. Right now, clients want to have a more holistic conversation about financial well-being.”

EY’s 2019 Insurance Outlook predicts an increasing focus on technology and the client experience as well as a greater emphasis on financial wellness.

The challenge for agents, Majkowski said, is “How do I continue to do what I’m really good at – life insurance – but also be more for my client?”

“Life insurance carriers are really good at developing great products and getting those products out into the market. But I think the agents have to keep finding new ways to reach clients and to be more focused on their overall financial picture.”

The industry must make their products easier for consumers to understand, Majkowski said. In addition, agents must take on the role of educator.

“Agents must keep educating their clients that life insurance is one part of the puzzle of their financial well-being,” he said.

The customer experience “is a big deal,” he said.

“Carriers must improve how they interact with consumers. As people get used to typing a few words into Google and getting answers, life insurers are still working on getting information to consumers faster.”

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[email protected]. Follow her on Twitter @INNsusan.

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