Insurers Have A Critical Mission: Financial Literacy

While many insurance conferences are dedicated to the debut of a variety of new products and technologies, the 2018 LIMRA Marketing Conference was a life insurance event focused on a central theme of consumer education and financial literacy. Nearly every presentation and panel discussion broached the challenge facing both consumers and carriers alike.

Put simply, life insurance can be a difficult product to sell as many consumers have poor insight into their personal finances and are similarly unaware of the investing and planning options available in the marketplace. According to Mintel research on financial literacy, most consumers are still neglecting basic financial practices . For example, while following a budget may be the most universally dispensed item of financial wisdom, only 41% of consumers report doing so. For many, data shows financial education resources have been shockingly sparse. Only 13% of consumers identified a college course as a source of personal finance information, and a paltry 7% of consumers cited a high school class. With statistics like these, it’s no wonder wealth inequality has reached increasingly untenable levels in the US.
Only 13% of consumers identified a college course as a source of personal finance information.

As marketing professionals at LIMRA’s conference shared similar consumer findings, the conclusion was clear: insurers and financial advisers have a lot of work to. Before carriers can sell policies, they must first communicate their value in a clear and compelling way.

However, the future looks promising as it appears the financial services industry is beginning to treat financial literacy as a priority. As we have observed in Mintel Insurance Marketing Trend ‘Insurance as a Service,’ the days of selling indemnity as a standalone solution are over. Whether a carrier provides auto coverage or long term care plans, today’s consumers want wellness guidance spanning from health to finances. The Mintel Insurance team has been tracking the most recent developments in financial literacy communications. Over the course of the next few months, the Mintel Insurance team plans to examine how insurers are expanding their offerings to meet a broader range of client educational needs.