Demystifying the middle market: An actionable understanding for life insurance

The middle market represents an immense audience and is a top priority for many insurance carriers. Meeting the financial needs of this market and realizing the tremendous associated potential are persistent challenges for the industry.

While often treated as a homogeneous group, middle market consumers have strikingly different financial priorities and concerns, as well as widely varying perceptions toward risk and life insurance.

There’s little question that the middle market presents life insurers with significant growth potential. With about 50 million middle market households, and an estimated 35 million of them underinsured, insurers could add roughly $10 trillion in life insurance coverage by effectively reaching this market. Insurance executives recognize this opportunity. Of the 35 companies that responded to the survey, nearly 68 percent said the middle market was their top priority and played a critical role in their business success. Furthermore, 73 percent said the middle market will be their top priority in the future.

In addition to identifying the middle market as their No. 1 priority, the executives revealed their obstacles and challenges to capitalizing on the market opportunity. Executives highlighted the following four closely related hurdles

  • Establishing life insurance as a priority in consumers’ minds
  • Finding a cost-effective means of reaching the middle market
  • Developing a mechanism for finding life insurance shoppers at the right time
  • Effectively communicating the value proposition of life insurance to consumers