Global Financial Crisis Impact on the Insurance Industry



Since the 2008 global financial crisis, the insurance industry has been on a tumultuous ride. Life insurance premiums have dropped more than 40 billion since 2008, crippling the amount of business agents have been able to write in that vertical.

One of the biggest issues is the increasing numbers of consumers who change carriers. The rising rate of customer churn in 2008 saw 52% of all shoppers look for new auto insurance of which 39% switched their insurance providers.
And the movement of consumers is still a major issue. In a recent survey by ComScores, 1 in 5 people said they were likely to shop for auto insurance due to the economy. Many agents who rely on long term customers need new ways to attract new customers.

All of this has resulted in a decline in the number of workers in the insurance sales profession. According the Bureau of Labor Statistics, following years of steady growth since before 2000, the number of workers has dropped 3% since its peak in 2008. It is the first time in a long period since there has been a slowing in the industry’s workforce, let alone, a decrease.

This decline has seen a drop in the total workforce of almost 9,000 jobs since 2008.

So what are agents doing to address the industry’s decline and the increased churn rate?

Well, many are turning to the internet to find new prospects. And it’s paying off.

The internet is a growing channel for customers looking for insurance. 72% of consumers have used the internet to find auto insurance information.

Plus, the percentage of people who said they would purchase auto insurance for the first time online is on the rise. In 2009, of the people who have not previously purchased online, 28% said they would head to the web to get their insurance. And in 2010, that figure hit 35%.

All this has led 1 in 5 consumers to now purchase their auto insurance online. That’s a whopping 20% of Americans who now get their insurance policies on the internet.

InsuranceFiles hopes that you have enjoyed this informational video and welcomes you to share it with your friends and colleagues. For more information about the figures contained in this video, please visit us at insurancefiles.com

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