In Latin America, the Importance of Simplicity Results in Happy Customers
WINDSOR, Conn., Sept. 14, 2015—New LIMRA research into the Latin American life insurance market finds a direct connection between customer satisfaction and ease of buying.
“Forty percent of people who bought a policy and were happy about their experience said it was because of a simple buying process,” said Kristen Gillis, analyst, LIMRA International Research.
“This is consistent with other LIMRA research. People tell us they want things to be easy — they want a simple, straightforward way to buy their policy without a lot of fuss, technical jargon or paperwork.”
A prior LIMRA study of the United States market found that 19 million people are convinced of life insurance’s benefits but do not buy it because they are confused, frustrated and overwhelmed.
The Latin American report, Consumer Experience in a Growing Life Market: Brazil, Chile, Mexico and Peru, also reveals that family and friend recommendations are the top reasons why people shop for life insurance. But the most compelling prompts to buy a policy came from financial representatives at 24 percent (see chart).
The Internet is the most popular way people shop for life insurance. But more than three of four purchases are made in person, indicating that the Internet is more often a research tool. This is consistent with LIMRA research in the U.S., which found the number of people using the Internet to learn about financial products to be up 10 percent in just three years (to 71 percent).
“Some of the greatest potential for growth in life insurance sales in the world today is in Latin America,” said Gillis. “Companies that want to do more business there should simplify their buying processes — and make more life insurance options available online.”
LIMRA and Fasecolda conducted the study, asking about 1,400 people to do an Internet survey in late 2014.