Less than half of consumers are aware they can buy life insurance from home and car insurance companies, according to a new study by LIMRA, a global research and consulting firm.
Only 48 percent of consumers know they can buy life insurance from companies that sell other types of coverage, such as home and car insurance, even though 95 percent of the companies represented in the survey offer life insurance. In addition, 87 percent of consumers said they had never spoken to a multi-line agent about life insurance.
"There is an obvious disconnect. In past surveys, 90 percent of LIMRA's multi-line exclusive agent panel said they always let clients know they can help them with their 'auto, home, and life insurance needs' during the first conversation or meeting," Laura Murach, assistant director of LIMRA Distribution Research, said in a press statement. "Perhaps it's not that sales agents aren't bringing up the topic of life insurance; but rather, the conversation is not resonating with potential clients enough to respond — or even to remember the conversation."
The report, "The Insurance Cross-Purchase Survey," examined a survey of more than 4,000 people to understand why they do or do not buy life insurance from their multi-line company. Although 63 percent of respondents own life insurance, only 19 percent own it with the same company that provides their automobile insurance. One in three people who buy life insurance from an insurer other than their car insurance company say they were not aware their car insurance agent sold life insurance.