Shopping for Life Insurance

  • Ms. Faucett <NAIC Actuarial Consultant to the NAIC> responded that people spend more time buying a microwave than they do an insurance policy.

1994-1, NAIC Proceedings

Mr. Foley responded that, if consumers want to compare policies, they have the illustrations to do so.

1999-4,  NAIC Proc

  • (p96) Survey evidence has consistently shown that most people do not shop at all for life insurance; they deal with only one agent. See Chapter IX.
  • (p290) Almost twenty years ago, the Yankelovich organization, on the basis of an extensive survey, reported to the major life insurance company trade association that6,
  • Due in part to the inherent characteristics of the product, the average person feels less self-confident as a buyer of life insurance than of any major purchase.
    • Indeed, the entire act of purchasing life insurance is fraught with anxiety: people are not confident about their ability to comprehend the pros and cons of alternative plans. 

1985 - FTC - Life Insurance Products and Consumer Information

National Association of Insurance Commissioners External Communication Plan - September 8, 1985

External Communication Project Rational

  • Objective - To increase awareness of state insurance departments as a primary source of consumers information about insurance products.
  • Strategy  - To offer buying tips and to solicit questions on a specific insurance product. (p95) 

1986-1, NAIC Proceedings

  • To get the best buy in insurance, Charlie Is going to have to shop around, talk to several agents and compare the prices and services offered by the companies. (802)

--  Pennsylvania Insurance Commissioner Herbert Denenberg

1973 - GOV - The Life Insurance Industry - Hart - Part 1

EXHIBIT F

[From Dally News, Friday, Dec. 29, 1972]

CONSUMERS GET SHOP TALK ON BUYING LIFE INSURANCE

(By Gene Spagnoll)

The average consumer probably spends more time shopping for a color TV set than he does for his life insurance.

  • One reason for this, perhaps, is that it's so difficult to shop for a policy.
  • There is no such thing as an insurance supermarket where one could compare prices and other factors affecting the purchase of insurance.  <p801>

1973 - GOV - The Life Insurance Industry - Hart - Part 1

  • Birny Birnbaum (Center for Economic Justice—CEJ) said he supports a uniform format for the one- to two-page consumer document and the policy and narrative summaries because some standardization is necessary to achieve the goal of Model #580, the purpose of which is to facilitate consumer comparison shopping.

2016-2,  Life Insurance and Annuities (A) Committee, San Diego, California, August 27, 2016