Why do people buy insurance is a big question for insurance companies who want to beat the competition. For those of you who are in the role of insurance marketers, you may be used to hearing skeptical statements from prospective clients about insurance. If summarized, the main rejection of prospective clients for insurance products is due to the need and the benefit factor in the form of money.
Main 2 reasons why do people buy insurance are necessity and pressure.
People Buy Insurance Because of Necessity
The easiest reason why people buy insurance is because insurance becomes their necessity. If insurance has become a necessity, then people are ready buying the insurance product they want. Don’t believe?
Australian pop singer, Kylie Minogue reportedly insured her bottom for US $ 5 million. Apart from Kylie, there is also the beautiful artist Kim Kardashian, who insured her body part (rear end position) for US$ 21 million. And lastly, who doesn’t know Jennifer Lopez (JLo), she insured her bottom for US$ 300 million.
Former soccer player, David Beckham reportedly insured his legs for US $ 70 million. Don’t be surprised by these numbers because Cristiano Ronaldo has more fantastic numbers. Ronaldo insured his legs for US $ 144 million (Rp 1.4T). Apart from that, there is also a beautiful model named Heidi Klum who insured her legs for US$ 2 million.
Become an insurance marketer’s dream to get clients who need insurance. The marketing process will be much easier if you know exactly the people who need insurance and then be offered insurance product offers.
People Buy Insurance Because They Are Pressured
One interesting thing about insurance and this element of coercion does happen in several places. The United States, for example, stipulates that vehicles must have vehicle insurance. Such conditions cause everyone who chooses to have their own vehicle, must think about their vehicle insurance as well.
In the state of Texas – United States, for example, the driver of the vehicle must have insurance or will be fined $ 1,000, the vehicle will be confiscated for up to 180 days and the right to drive is suspended for up to two years.
As a result, vehicle insurance companies have sprung up to offer their services. If the area where you live forces people to buy insurance, the task of marketing is a little easier.
The External Factor
Apart from the two reasons why people buy insurance, there are external factors that will cause people to choose an insurance company. The external factors are premium prices, benefits, reputation, and claim mechanisms.
Premium Rates
The price premium is clearly the main concern for potential clients. Affordable prices are the main attraction to attract consumers in large numbers. This is well implemented by travel insurance providers when you make hotel reservations, airplane tickets to car rentals.
Benefits
Not a few people feel a loss because they pay insurance premiums regularly but do not feel the benefits directly after years of paying premiums. This perception is always perched in the minds of prospective clients. Insurance marketers must deal with such a client mindset.
Insurance is protection, protecting customer from possible financial losses. In accordance with the basic principle of insurance, namely “utmost good faith” which means full good faith and aims to provide protection.
People who understand how insurance works will buy insurance. If your prospective client still has a standard mindset of financial gain, insurance may not be a requirement for that prospective client.
Reputation
In business, reputation is important. If you work for a fledgling insurance company, do ongoing marketing with a reputation.
A well-maintained business reputation is part of the marketing of an insurance business. Implement efforts to build the reputation of the insurance business so that potential clients feel confident to buy the insurance premiums that you have.
Claim Mechanism
An important aspect of an insurance business. Business leverage from low premium prices will soon be neglected by the clients if the claim mechanism of your insurance business is very bad. In the end, not only will your insurance business lose customers, but your business reputation will also damage due to the poor claim mechanism that your insurance business applies.
How to Make People Buy Insurance from You?
You know what makes people buy insurance and what not. Identify your strengths and weaknesses. If you are part of the marketing team for relatively new insurance companies, focus on educating customers, build your reputation and a good individual salesperson or reliable insurance company.
