The Life Insurance Market is Rebounding — How Can Agents Benefit?

By Joseph Peters

19 pandemic seems simultaneously like a distant memory and an ever-present topic, but no matter how you currently feel, it undeniably changed people’s outlooks on life in a number of ways. In one particular sense, many reflected on their lifestyle choices and financial safety, leading many to feel uneasy about their current life insurance policies and conclude they do not have adequate coverage.

Today’s Rebounding Life Insurance Market

This general reflection on mortality contributed to a revenue spike in life insurance premiums from $143 billion in 2020 to more than $165 billion in 2022. Research and Markets, one of the largest market research firms in the world, doesn’t see this as a fluke but a clear indicator of the future. It projects the global life insurance market will increase from $3.9 billion in 2022 to more than $7 billion by 2030.

How Agents Can Benefit from a Rebounding Life Insurance Market

As this market is primed for growth, you can benefit by helping your current clients — or attracting new ones — by prioritizing flexibility and education.

For starters, help your clients understand that life insurance can be easily integrated with other policies. A common misconception about life insurance is that many believe policy terms are too rigid. Assure them that life insurance is a part of an overall insurance solution, such as integrating life insurance products into a retirement plan.

Present your clients to the concept of insurance riders, which are also known as endorsements or add-ons. Riders are contractual amendments that allow policyholders to tailor their policies to fit their unique needs and make adjustments as they go through different stages of life. This flexibility is great for making policy adjustments after significant life changes, such as getting married, having kids or retiring.

Being able to meet the needs of different age groups is key when it comes to being a life insurance provider. Obviously, different age groups mean different life stages with varying priorities and needs. Help your current and prospective clients understand they can explore a multitude of policies to find one that best aligns with their specific needs and that you are able to guide them through the process.

This is especially true with younger generations. It’s fair to suggest many millennials had revelations of their mortality due to the pandemic, as they purchased 64% of life insurance policies sold in 2021. However, as the life insurance market for younger generations is lucrative, many are still underinsured and under-educated. Providing valuable knowledge and guidance to this group is vital to supporting them as clients.

If you are particularly interested in attracting clients from younger generations to build long-term relationships, you should be aware of two aspects that make this market unique.

First, leverage the digital advancements happening in the insurance industry. It is critical to cater to millennials' and Generation Z’s desire for seamless customer experiences, as digital accessibility plays a significant role in their decision-making process. If they have difficulty navigating your digital channels, they will lose interest in you almost instantly.

You should invest in digital self-serve tools — such as online quote generators and chatbots — and maintain a user-friendly web and mobile website experience. Monitor these tools closely to ensure they are always working correctly and are up-to-date.

Second, be mindful of your business’s environmental, social and governance (ESG) criteria. ESG criteria is a set of standards for a company’s behavior used by socially conscious investors to screen potential investments. This is important because the ethics of a company carry more weight in millennials' and Generation Z’s purchase decisions compared to past generations. You can read more about how to set your standards for socially responsible investing here.

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