Recent economic news indicates a slowdown in U.S. economic growth, but changing financial sentiment hasn’t dampened consumers’ views of life insurance. In fact, a new study from LIMRA discovered that today’s consumers feel more positively about life insurance than ever before.
The economic rebound that defined the end of last year improved many people’s outlook, and the declining performance might have some financial professionals concerned about selling prospects in the coming months Luckily, this downturn could be short-lived, and it seems consumers will maintain an interest in life insurance products despite weaker economic gains.
Consumer sentiment rises around insurance
Positive feelings about life insurance and insurance brokers reached their highest point in five years this month, according to LIMRA’s annual Consumer Sentiment Tracking release. This survey found 19 percent of consumers felt positively about insurance financial professionals, while 22 percent expressed a positive feeling toward life insurance providers.
These metrics are particularly valuable when compared to other measurements of consumer sentiment, which have dipped alongside lackluster economic data. The same LIMRA study asked people how they felt about the economy overall, and discovered an uptick in unfavorable sentiment. That mirrors results from polls conducted by other organizations that research consumer feelings more generally.
The Conference Board discovered a 6.2 percent decline in its Consumer Confidence Survey, which combines data on a variety of issues to get a generalized overview of consumer sentiment. While financial professionals would certainly prefer positive news about consumer feeling, these results do not signal problems for financial professionals who need to expand their client bases. In fact, the decline could offer an opportunity.
The chance to speak about uncertainty
Life insurance can serve as a retirement planning tool, a way to provide for loved ones and a shelter from aggressive estate taxes. Moreover, it serves as an antidote to concerns regarding unexpected shifts in the economic landscape. The current dip in confidence may provide financial professionals with inroads to a larger conversation about a client’s financial goals and concerns they harbor regarding their financial future.
If there’s one thing that the data from LIMRA demonstrates, it’s that an economic downturn does not necessarily damage people’s opinions of life insurance and financial professionals. Clients remain interested in products, and these insurance options may offer solace from concern about economic fluctuations.
A recovery is likely
The current situation allows financial professionals to start a conversation about life insurance, and the potential recovery that follows the ongoing economic dip could encourage more people to invest in policies. The Federal Reserve released minutes from its April meeting that indicate the group expects the economy to improve later this year.
Whether or not that recovery occurs, it’s evident financial professionals and insurance companies have made substantial inroads with American consumers and built a higher level of trust than was present in the past. Financial professionals who nurture this positive sentiment can increase their client bases and build business for the future.