06/28/2023
Top insurance companies know that they sell an intangible product — peace of mind — so trust is vital. That's why insurers stay close to their policyholders.
Primerica (PRI) is a newcomer among the top three of IBD's most trusted life insurers category. It soared to the top of this year's survey with an overall score of 83.4 by sticking to its niche of selling term life insurance to Main Street USA.
The company also took the No. 3 ranking on IBD's overall list of the 25 Most Trusted Financial Companies. This year's survey, IBD's third, is being presented in partnership with our sister company, MarketWatch.
Insurers in three business lines — life, auto and home — were included in the customer survey that produced the rankings. The top three in each business line are recognized as the most trusted in the category.
Primerica CEO Glenn Williams
Primerica CEO Glenn Williams (Primerica)
"Our culture is unique and our approach to the market is unique," said Glenn Williams, chief executive of Primerica, based in Duluth, Ga. "We've remained focused on middle-income families." He says competitors chase wealthier customers and offer higher-premium cash value policies that combine life insurance with an investment vehicle.
New York Life took the No. 2 spot in this year's survey, with an overall score of 72.5. Coming in No. 3 is Prudential (PRU), scoring 69.9.
Primerica's Williams loosely defines the middle market as families with annual household income of $30,000 to $100,000. Their "pocketbooks are smaller," he said.
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Top Insurance Companies Train Their Reps
Selling life insurance requires a deft touch. Many people dread discussing their demise, and hMost Trusted Life Insurance Companiesow it will impact their loved ones.
Primerica's sales force is able to broach this sensitive topic. It consists of over 132,000 independent contractors across America. Thanks to the company's large scale — it insured over 5.7 million lives as of Dec. 31, 2021 — it can license its sales reps internally rather than relying on third parties.
"We have the infrastructure in place not only to license them, but to offer leadership and sales training to them," Williams said.
Primerica also lets its sales reps work part-time. And they often live in the communities they serve.
"Having the flexibility to work part-time helps us with agent retention," Williams said. "Our four-year retention rate is almost double the industry. And our salespeople come from the middle market. They connect with that market through their common experience."
Trust flows from a seamless, no-hassle buying experience. Like other life insurers, Primerica uses medical underwriting to assess applicants. But it streamlines the steps.
3 Most Trusted Life Insurance Companies
Company Category Overall Rating Quality Ethics Privacy Customer Service Price Sensitivity To Customer Needs Innovation
Primerica Life Insurance 83.4 86.5 78.9 86.3 83.3 83.2 81.5 84.0
New York Life Life Insurance 72.5 73.3 73.8 79.5 76.3 65.4 65.5 68.0
Prudential Life Insurance 69.9 72.4 72.5 79.0 71.5 58.7 62.9 64.6
"We use more technology to cut the long process," Williams said. "Our clients put value in convenience and ease of interaction. When they buy term (insurance), it's not just price. It's also speed and simplicity."
In recent years, so-called "insurtech" companies have sought to streamline the buying process with more technology. But Williams thinks that Primerica's human touch sets it apart.
"Insurtech companies talk about how they use technology to make client interaction easier and more convenient," he said. "We believe we can do it with a combination of having an advisor and technology."Primerica is always expanding leave message if you are interested in making some $$ or would like your free Life Insuarance quote today!!
