The COVID-19 pandemic has brought mortality and financial security to the top of everyone’s minds. In the younger markets, life insurance enrollment has risen by as much as 13 percent, with an industry-wide increase of two percent over the summer compared to last year. Clearly, many people are considering their coverage and looking for ways to improve their money management. Term life policies have been selling more thanks to their affordability.
In a health pandemic, health insurance has also come into the spotlight. Medicare is committed to covering diagnostic tests for beneficiaries, and many others are doing the same. Socially distanced options have also become more widely available, with major providers covering telehealth communications through the end of 2020.
Insurance agents may have to alter their selling strategy going forward. Industry experts have suggested that more than the agent’s character, their competency will have to be demonstrated to earn the trust of new clients. Previously, character was much more potent of a selling point. Now, however, everyone has felt or knows someone who feels the pains of inadequate coverage and financial stress. Business owners will be especially careful to make sure they have the coverage they need after the hit they took.
Medicare has made allowances for people who missed their enrollment period if it was during and missed due to the pandemic. Those needing to sign up for coverage at this time will most likely consider cost-saving plans. Approximately one-fourth of Medicare beneficiaries currently have a supplement plan, which is designed to cover some of the expenses of cost-sharing, including coinsurance, copayments, and deductibles for Part A and Part B. These plans may become more popular in light of the pandemic.
As an insurance agent, your business probably transitioned to remote work as the nation did. That meant learning to adjust your business practices and implement new technology. To continue furthering your business’s new direction for the foreseeable future, it would be wise to tighten your security. Make sure that your remote employees have secure logins and passwords and that they access only what is needed when outside the office. The more access points to sensitive data, the more risk your business has to cybersecurity threats.
Additionally, your team will need to be up-to-date on the latest regulations and information for the coverage you offer. Recruit for competency in addition to character, and train your fellow agents to know the ins and outs of coverage. Your business will benefit from being able to demonstrate a wealth of information. Stay informed about recent changes, including if having the virus will count as a pre-existing condition in future policies.