The only way that any life insurance agent can increase sales is by thinking more of the client's needs. Indeed, there are several tactics, which agents can utilize effectively to generate greater uptake of life cover.
1. Delivering A Convincing Message Concerning Tax Deductibility
A 2014 report by the Financial Services Council (FSC) and MetLife clearly reveals that the top persuasive message, that would motivate majority of Australians across all the life stages, is the aspect of tax incentives provided by the government to those who have coverage. Therefore, any smart agent would strive to clearly portray this aspect to potential clients.
Many Australians would also be happy with the fact that coverage within super funds is much more affordable than outside the super fund. This is because premium deductions are made from before-tax income in super, rather than after-tax income outside super. This too is a highly persuasive message that can help generate greater sales for insurance companies.
Strangely enough, the third most persuasive message is the fact that a minimum level of coverage is required so that policy holders can avoid extra taxation. If you thought revealing this fact to potential clients would turn them off, you'd be greatly mistaken. Do it and you'll be signing up more Australians who are ready to take up coverage.
2. Innovative Marketing Tactics
Agents are forced to adapt to new innovations and changing lifestyles in the modern age. Otherwise, they would not effectively communicate their message to potential clients or even get them to read such messages. Therefore, marketing strategies have to utilize the right platforms and the best messages that appeal to Australians.
The 2014 survey by FSC and MetLife indicates that online platforms make up the biggest source of information concerning life cover (44%) for Australians. This is even higher than the percentage of people seeking such information directly from insurance organizations, which stood at 38%. This means that such insurance organizations should adopt online content marketing in order to reach more clients.
The same study also reveals that majority of Australians are concerned about paying their bills and living a comfortable lifestyle. People actually prioritize such things as cars and houses even more than their health. The survey indicates that majority of people would be more willing to sacrifice heath insurance compared to their car or home insurance. Life insurance comes a distant third after these two top priorities. Therefore, marketers should be careful about how they portray life coverage to show that it would fit in with such kind of a lifestyle without distorting anything.
Interestingly, a unique strategy was adopted by AXA in 2011 that sought to appeal to Australians' prioritization of car insurance over life cover. This marketing strategy offered discounts to Royal Automotive Club of Victoria (RACV) members for life, trauma and TPD insurance policies from AXA. Apparently, such a strategy proved quite popular.
Simply by understanding Australians' needs and preferences, agents can apply effective strategies that drive greater sales of life cover policies. In fact, such strategies should be more focused on increasing levels of coverage which is still a major concern.
Kerrie Peacock has spent many years working in the Australian personal insurance industry. She regularly shares her keen insight of the personal insurance market. She also recommends MeCovered for those seeking professional consultation on specific insurance products.To find out more and ideas on just what can work for you, go to www.mecovered.com.au/life-insurance-agent.