This report assists LIMRA members in the areas of business development and distribution effectiveness. It reveals the types of information sources and purchase channels used by different types of consumers when they shop for individual life insurance coverage. This analysis allows industry marketers to understand the attitudes and behaviors of households in their distribution systems.
Share of distribution by purchase stage (percent using each method)
The proportion of consumers using each method changes significantly between purchase stages:
Between Stage 2 (Shop) and Stage 3 (Quote), the proportion using direct mail declines by 48 percent, while the share of distribution for online resources increases by a similar amount.
Between Stage 3 (Quote) and Stage 4 (Purchase), the proportion using online sources falls by 52 percent, while the proportion using phone distribution increases by 28 percent.
Usage rates of different methods change noticeably by household demographics. However, these tendencies also change as consumers advance through the purchase process.
Scanlon directs a team of LIMRA researchers focused on insurance product and service marketing. His program includes one-time topical studies, as well as recurring surveys that track consumer behaviors and ownership levels over time. Scanlon conducts projects with a focus on key consumer segments, including the middle market, affluent markets, and small-business owners. He holds an M.S. in resource economics from the University of Massachusetts, where he also earned a B. A. in economics.
Assistant Vice President, Insurance Research — Markets
LIMRA
jscanlon@limra.com