How much do you know about insurance? Do you cringe when you have to talk to an agent about life insurance? Do you know what the different terms mean in the insurance industry? Its not surprising that there are quite a few people out there who do not know as much as they want to or think that they should about their insurance plans. Terms such as “death benefit” or “premium” or “cash value” are words and phrases that elude a good majority of the general public, according to speakers at the LIMRA 2014 Marketing & Research Conference.
“The problem is failure to use ‘authentic language’ when communicating with consumers, said Maria Ferrante-Schepis in an interview in advance of a presentation on the subject. She is managing principal for Maddock Douglas, an innovation consulting firm based in Elmhurst, Ill. Her firm joined with LIMRA to conduct research of the topic.” (Koco, 2014). Authentic language is more than just using laymen’s terms, which a lot of insurers already do. It is also using visual aids and making the consumer feel that the insurance company understands them.
There are an estimated 19 million people in the country who do not have life insurance, but think that they should and see the value in it. How do insurance companies go about helping these people get insured? Authenticity. Showing the consumer that the company understands them and knows what their needs are and can meet them.
For example, 67 percent of people don’t feel comfortable that they understand and know what whole life insurance is. The insurance industry needs to use language that is easy to understand, is memorable, is positive, is relevant, and is credible.
“Concerning being relevant, the researchers found that if the consumer believes the carrier understands the customer, ‘that is a major motivating factor in the shopping process,’ says Scott Kallenbach. Kallenbach is the research director-strategic research for LIMRA. Ultimately, consumers want to feel that the insurance companies are looking out for their best interests and not just the financial side for the company.
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