TNS Survey finds the number of consumers willing to purchase life insurance directly from insurance companies has tripled
New York, NY, February 17, 2010 - TNS, the world's largest custom research company, today released results of its latest survey related to recent purchasing trends for life insurance. The survey, conducted among 2,500 individuals reveals a new shift in consumer behavior; consumers are more willing to purchase insurance policies directly from the insurer.
Discussions on health care, changes in the economy and reductions in employer insurance coverage are affecting how Americans are learning about and purchasing insurance products. Fielded in February 2010 by TNS' Express Online Omnibus, this survey provides insight into the new opportunities that would become available to insurers should they expand the distribution alternatives for personal life insurance products.
Of those surveyed, over 33% would consider buying life insurance directly from a life insurer. This compares to only 10% who have bought their existing policies directly in the past. With a variety of new offerings being made available directly by life insurers through the internet and phone, potential buyers are responding and are more willing than ever to consider them.
"What's really interesting is the scope and breadth this trend is taking," said Bill Bruno, Vice President at TNS and head of TNS' Insurance segment. "Buying directly from the insurer isn't a behavior just for the younger generation. We're seeing consumers fifty years and older more likely to express interest in the direct channel than their younger counterparts. The trend seems to be widely accepted across all age and income categories, and the vast majority would prefer online rather than phone," Bruno added.
Bank Channel Gaining Steam
Banks are emerging as a more widely accepted venue for life insurance sales. Over 16% of those surveyed would consider purchasing life insurance through a bank or credit union. "When you consider that one in six would buy life insurance from a bank today and very few purchased life insurance this way in the past, the opportunities for expanding distribution here are significant. Life insurance customers, however, will expect knowledgeable advisors and fulfilling on this will be necessary to realize the full potential of this channel, said Bruno.
Key to Success: Mirror the Agent - Consumer Relationship
To succeed in developing a profitable and trusted distribution channel, insurance companies and banks alike will be required to focus and strengthen relationships with customers. Undoubtedly, customers expect knowledgeable and trusted advisors and the traditional agent - consumer relationship is dependable. According to the TNS survey, 65% of respondents would look to future life insurance policies from an agent or broker, compared with 55% who actually did purchase from this channel in the past. "It seems that life insurance buyers want to have the choice of the expertise and knowledge that agents, brokers and advisors can offer as well the convenience that buying direct and other alternatives offer. The final choice may be dependent on the perceived complexity of the products considered and the individual's financial situation" Bruno concluded.
About TNS
TNS, who recently merged with Research International, is the world's largest custom research agency delivering actionable insights and research-based business advice to its clients so they can make more effective business decisions. TNS offers comprehensive industry knowledge within the Consumer, Technology, Finance, Automotive and Political & Social sectors, supported by a unique product offering that stretches across the entire range of marketing and business issues, specializing in product development & innovation, brand & communication, stakeholder management, retail & shopper, and qualitative research. Delivering best-in-class service across more than 75 countries, TNS is part of Kantar, the world's largest research, insight and consultancy network. Please visit www.tnsglobal.com for more information.
The Kantar Group
The Kantar Group is one of the world's largest research, insight and consultancy networks. By uniting the diverse talents of more than 20 specialist companies - including the recently-acquired TNS - the group aims to become the pre-eminent provider of compelling and actionable insights for the global business community. Its 26,500 employees work across 80 countries and across the whole spectrum of research and consultancy disciplines, enabling the group to offer clients business insights at each and every point of the consumer cycle. The group's services are employed by over half of the Fortune Top 500 companies. The Kantar Group is a wholly-owned subsidiary of WPP Group plc. For further information, please visit www.kantar.com.
