QuoteClix News – One in Five U.S. Life Insurance Polcies Sold Through Direct Marketing
According to a new joint project conducted by LIMRA (life insurance Marketing and Research Association) and LIDMA (life insurance Direct Marketing Association), sales through direct channels represented more than 20% of the life insurance policies sold and about 5% of the premium sold in 2008. “For the first time, we have been able to quantify the amount of individual life insurance sold through direct channels, like the Internet, direct mail and telephone,” said Ron Neyer, senior analyst, LIMRA Distribution Research.
LIMRA and LIDMA researchers estimate that over 2 million individual life insurance policies sold in 2008 were purchased through direct channels. In addition, direct response sales totaled $675 million in new premium in 2008.
The number of consumers who bought life insurance online has doubled since 2006. Price, convenience and a good Web site were the top factors that influenced these consumers. With advances in technology, researchers anticipate that more consumers – especially younger generations – will use direct channels to buy life insurance in the next 5 to 10 years.