Life insurance is bought based on perceived value, not cost, finds JD Power

TROY, Mich., USA–(BUSINESS WIRE)–November 15, 2022–

The adage that life insurance is sold, not bought, needs updating for the post-pandemic era. In fact, customers are starting to buy life insurance, but cost is often not the only important criterion in choosing which policy to purchase. According to the J.D. Power 2022 US Life Insurance New Business Study released today by SM, the perceived value of customers and the view that insurers make recommendations in the customer’s best interest are separate considerations for life insurance buyers. is the main factor influencing when choosing one brand over his.

“In this inflationary period, with price becoming the most important factor in so many consumer purchasing decisions, life insurance customers are more concerned with their future and the insurer’s ability to deliver on their promises than with price. It is worth noting that we have a Robert M. Lajdziak, Director of Global Insurance Intelligence at JD Power“This leaves carriers with a responsibility to differentiate themselves, articulate their unique value propositions and ensure that prospective customers fully understand all aspects of their insurance policies.”

Below are the key findings from the 2022 study.

  • Improve quote and purchase conversion rates. After industry-wide quote rates rose for the first time in 30 years a year ago, quote rates rose another 9 percentage points this year, and purchase rates rose 13 percentage points as more consumers sought life insurance. .
  • Concern about the future drives life insurance buying activity. Concern about the future is the number one reason consumers start researching life insurance policies, with 57% of life insurance customers citing it as their primary reason for looking for a policy. That percentage has increased from 55% in 2021.
  • Overall satisfaction is stable: Overall satisfaction with individual life insurers remained broadly unchanged at 774 (1,000 point scale), down 2 points year-on-year. Satisfaction with the shopping process is also stable, with the same score this year as last year, despite the speed of policy execution that has improved new buyer satisfaction.

The 2022 U.S. Life Insurance New Business Survey measures the shopper experience of the nation’s largest life insurance companies. This study measures overall customer satisfaction based on the application process. Surveyed shoppers can share their experiences with the application and quoting process with up to five brands, but only one is required.

The study is based on responses from 6,993 consumers surveyed in July-August 2022 who have purchased individual life insurance in the last 12 months.

For more information on the US Life Insurance New Business Study, please visit: https://www.jdpower.com/business/insurance/us-life-insurance-new-business-study.

See the online press release below. http://www.jdpower.com/pr-id/2022169.

About JD Power

JD power is a global leader in consumer insights, advisory services, data and analytics. JD Power is a pioneer in using big data, artificial intelligence (AI), and algorithmic modeling capabilities to understand consumer behavior, with over 50 years of sharp industry intelligence on how customers interact with brands and products. has provided World-leading companies in major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. For more information on what the company does, please visit his website at: JDPower.com/businessThe JD Power Auto Shopping Tool can be found at: http://www.jdpower.com. JDPower.com.

About JD Power and Advertising/Promotion Rules:www.jdpower.com/business/about-us/press-release-info

View source version businesswire.com:https://www.businesswire.com/news/home/20221115005320/en/

Contact: Media contact

Jeno Effler, JD Power. West Coast; 714-621-6224; media.relations@jdpa.com

John Roderick; East Coast; 631-584-2200; john@jroderick.com

Keywords: Michigan United States North America

Industry Keywords: Family Professional Services Consumers Women Seniors Insurance Men

Source: JD Power

Copyright Business Wire 2022.

Published: November 15, 2022 08:00/Disc: November 15, 2022 08:02

Copyright Business Wire 2022.

Leave a Comment