How is Covid-19 Affecting Insurance Sales?

April 7, 2021
By: Voldico

As we move through a post-Covid-19 world, things are quite different compared to a year ago. How have these differences affected insurance interest and sales?

As 2021 starts to stretch towards springtime, what does our world look like?

  • Grocery delivery services and gig-based food apps have become the norm, while restaurants sit empty
  • Doctor’s visits are scheduled on computers and cell phones, as commuter traffic slows to a trickle
  • Masks are required for every errand and shopping trip, and hand sanitizer pumps are everywhere

While it’s all been necessary to keep everyone safe, things are different versus a year ago. 

In the insurance world, does that difference translate to sales and interest? The short answer is yes — so be ready for it. 

Insurance Agents are Learning to Sell at a Distance 

The insurance professionals that were best prepared for this new normal were those that had previously devoted time and attention to their online presence. As some agents struggled through a crash course of trial-and-error in terms of website pages and social media accounts, others simply continued business as normal. 

As time stretched on, those new to the concept of online communication as a dominant form of lead generation have learned to leverage it for growth. As more and more appointments are being made over Skype, Zoom, and teleconferencing sites, insurance is becoming more accessible to the average client. 

In some cases, even mobile phone apps are serving as the new “insurance office” when talking to potential insurance clients. 

Research and Authority Have a Big Impact 

Without the time and location restraints of “normal” life — school, work, in-person shopping, and so on — potential clients have ample time to dig into service providers’ histories. The need for testimonial collection and professional reviews has never been more clear than in 2020 and 2021, and some agents are pivoting their business approach in response. 

A sales-focused strategy that tapers contact after money changes hands is no longer optimized for growth; follow-ups are — or, at least should be — as much about brand perception as policy-adding.

New Potential Avenues of Sales are Opening Up

One of the lingering effects of a global pandemic is that even the most risk-tolerant individuals are realizing that they aren’t invincible. As Covid-19 cuts a swath through the population, affecting even the youngest and healthiest members of society, the need for reassurance and future planning is, even for the “invincible” mindset — imminent. 

While smart agents don’t lean too heavily on doom-and-gloom, a cautious conversation about financial, health, or property-related vulnerabilities is making more headway than it used to. 

The Volume of Insurance Sales has Gone Up

In a move touted by CNBC as “panic buying,” the gravity of looming illness has spurred many on-the-fence buyers to decide to buy life insurance. With projections noting anywhere from a 10% to 30% increase in sales as of late 2020, it’s clear that the American appetite for future planning has grown in response to the pandemic. 

While this “bump” is not unusual after tragedies and large disaster events, the prolonged era of Covid-19 seems to have strengthened beyond a trend, into what may become a new normal for the insurance industry.

If your agency or insurance business has noticed a shift in your sales and policy volumes, it’s time to start locking in that growth for the long term. Strengthen your service offerings and get the support you need to continue your trajectory with membership in the Voldico insurance cluster. Contact us today to discover what we can do for your agency!