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Chubb Report Studies High-End Insurance Consumers

by Precise Leads

March 11, 2019

Insurance agents have to change the conversation from value to value added. 

Insurance agents targeting to affluent clients and going to have to up their game. A new study by global insurance provider Chubb contains some key finding on consumer behavior by what they call “successful families and individuals”. The study focused on ways to sell insurance products to a high-end clientele in an increasingly value conscious digital marketplace.

High-End Clients Shop Online

The first finding in the report is the reality that the internet is the starting point for insurance shoppers in this high-end segment. Affluent insurance shoppers are twice as likely to shop online for insurance than lower income consumers. In the last 12 months, the report found that 69% of affluent insurance consumers have shopped online for insurance, while 73% plan on shopping online for insurance in the future.

Culture of Cheap

The central problem with high-end clients shopping online is not that they are unattainable for agents, it’s that they’re immersed in the online “culture of cheap”--each online offering trying to out-bargain the other. The report recommends how agents and brokers catering to affluent clientele can succeed in a marketplace that races to the bottom.

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Focusing on Value Added

Agents and brokers can change the conversation away from price by focusing on value added by policies, the report says. Chubb finds that 54% of affluent clients distrust agents when they lead a policy discussion with price. Furthermore, 80% of clients want agents to focus on protection over price. These are encouraging numbers for agents targeting affluent clientele.

Focusing on value added means appealing to your clients’ long-term vision. Getting a cheap policy is an immediate gain felt when premiums are paid. However, this is not how you properly protect yourself when it comes to complex coverages like health, auto or home. The reports asks agents to focus on cost avoidance, or the potential costs incurred by avoiding coverage. If your house burned down, how would you feel about paying $300,000? It’s only then that the value of fire coverage is fully felt.

Successful families and individuals have the resources to pay for proper coverages. It’s up to agents and brokers to transition these clients away from the seductive culture-of-cheap that pervades the internet.

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