What Is the Buying Decision Process for Insurance?

Insurance can be an overwhelming process for even the most prepared of clients. Making the right buying decision requires a lot of research, several conversations, and a good dose of trust in the right agent. What’s going through your clients’ minds when they are shopping for insurance? What does their buying decision process look like? Understanding how they think can go a long way towards helping you build better relationships and establishing that much-needed trust.

Why Do People Buy Insurance?

Recently, we published a whole blog post on what spurs people to invest in insurance. If you really want to get an idea of what spurs someone to start researching coverage, we recommend starting there. What it boils down to is this: most people know that insurance is important. But many people are driven to purchase only when a need arises--usually in the form of a major life change, such as a new baby or a marriage. Or, unfortunately, when they've had a tragic situation and didn't have the proper coverage. As an agent, it's key for you to help clients find the solutions they need before a disaster arises.

How Do People Shop for Insurance Today?

There are a few ways that people might begin the buying decision process when it's time to get insurance coverage. Like many industries, potential insurance clients go through the buyer's journey before they make a purchase decision. This process can be understood in the following phases:

  1. Problem recognition - This is the moment where your potential client realizes they may need a new or better insurance policy.
  2. Information search - The consumer begins to do their own research. This probably involves a few intense Googling sessions, some reading, and asking for referrals. Referrals are huge for you as the insurance agent - people only refer their friends and family to agents that they trust. Check out our recent blog on the importance of asking for introductions from your clients instead of referrals.
  3. Evaluation of alternatives - Once your potential client has done all of their research, they will start to compare their options. It’s important that you are offering the best service and solutions for their needs in order to make your agency stand out during this stage of the buying decision process.
  4. Purchase - The consumer is ready to sign on the dotted line!
  5. Post-purchase evaluation - In the competitive insurance world, you should know that your clients are always going to evaluate their satisfaction with your service. For you, this means that it is crucial to prioritize follow ups and work to build strong, lasting relationships with your entire book.

When it comes to sealing the deal with a new client (or even expanding a current client’s coverage), it’s essential to understand where they’re coming from. Having a handle on their buying decision process is the first step in meeting your customer base where they are and handling each case with compassion.


Pivot Your Insurance Agency Towards Sustainable Growth Are you an insurance agent who feels that your agency is stuck? Is your team grinding new leads each month yet your agency never seems to grow? Client Focus has worked with thousands of agents over the past 15 years just like you. Our purpose is to help your insurance agency pivot onto a path to sustainable growth.

A Practical approach to building sustainable growth for your insurance agency

By Client Focus | June 29, 2018 | client retention tips |
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