This article was first published on July 20, 2020.
Traditionally, the mainstream distribution channel partners for life insurance sales, have relied on high-touch physical client interactions for generating leads and closing sales. However, due to COVID-19, insurance distribution is also undergoing significant changes as the forced reality of virtual engagement is encouraging further adoption of digital, and distributors are willing to adopt to new ways of working. Our point of view in this report is focused on best practices for insurers to drive Sales Force Effectiveness in Agency channel.
Our primary customer and agent research suggests that advisors are not sure if customers want to engage in such times and hence are reluctant to reach out. Some customers don’t want to meet physically, are overwhelmed and anxious about their financial futures, but do want to engage about their financial future including insurance. There is increased awareness and interest about Life and Health Insurance from customers. What’s also clear is that customers as well as agents are expecting more from their insurers than before.
We have come up with a framework with three core elements for insurers to think about for driving better sales force effectiveness in the agency channel.
Digital advancement is at its peak and adoption is no longer an option. While the current focus is on protecting business downside, the timing is right for insurers to drive the digital agency model at scale to enable agents to be more effective and productive than ever before and transform the channel.
Angat Sandhu, Heiko Faust and Steven Chen also contributed to this report.