Behavioral science techniques proven to help boost insurance sales.

Ever chosen the middle-priced option without giving it much thought? Or felt the urge to act when something you wanted was about to disappear?

Those everyday decisions offer a glimpse into behavioral science—and understanding what’s behind them can help you communicate more clearly, build stronger relationships, support informed decisions, and, ultimately, make a measurable difference at your insurance agency. 

What might that difference look like? In a pilot project conducted with one of North America’s largest insurance providers, the sales group that applied behavioral science techniques generated 12% more revenue than the group that continued its previous sales practices. Read on to explore what your agency can learn from that approach. 

What’s behavioral science?

Behavioral science combines several disciplines, including psychology, sociology, and economics, to better understand human behavior. Think of it as a closer look at the “why” behind decisions. 

Why is behavioral science important for insurance professionals?

Behavioral science can help you understand the subconscious drivers of decision making—and, sometimes, a small change in how you present information can make a meaningful difference. 

From improving safety to upping performance, there are tons of behavioral science techniques that can help you ‘nudge’ someone in a specific direction.

“With nudges—subtle interventions based on insights from psychology and economics—we can influence people’s behavior without restricting it,” explains Julia Sperling, a neuroscientist.

The key is that last part: without restricting it. That, plus honesty, clarity, and transparency, will help you avoid an ethical dilemma.  

3 examples of behavioral science producing more favorable results:

• Automatic enrollment in a large company's 401(k) plan increased participation among new employees from 37% to 86%.

• A “neighbor-comparison report” cut electricity use by 2% across about 600,000 homes.

• Adding one sentence to a tax reminder, saying most people pay on time, raised payment rates by 1.3%-2.1%.

How can behavioral science help me sell more insurance?

At its core, sales is rooted in human behaviors, decisions, and interactions—so understanding what can influence those behaviors could be beneficial.

A real-life example:

The Decision Lab, a behavioral science and design consulting firm, partnered with one of North America’s largest insurance providers to help them create an in-house behavioral science team.

During their pilot project, the sales group that implemented behavioral science saw a 12% increase in revenue over the group that maintained their previous sales practices.

The good news is that your agency doesn’t need an entire research team to get started—just a willingness to better understand your clients and try a thoughtful change. No lab coat required. 

What behavioral science tactics should I use?

Your agency doesn’t need to try everything at once. Start with a communication challenge, choose an approach that fits, and test a small change. 

Nancy Harbut of HBT Marketing is well known in the marketing industry for using behavioral science-backed tactics to increase results. When she partnered with Prudential, here are five behavioral science approaches that worked during their campaign and their reported results:

1. Extremeness aversion helped generate a 459% lift for life insurance sales.

This is the tendency for people to gravitate to the middle of a lineup, versus one end of a range or the other. So, the way you organize choices can still shape the conversation. 

Let’s say you’re selecting a bottle of wine on a date. Are there any options instantly off limits?

For example, you may want to avoid choosing the absolute cheapest or most expensive options because of the impression they could bring. (Being cheap and going for the most expensive just because may be frowned upon—but you do you.)

2. Loss aversion helped drive a 68% lift in getting term life insurance customers to convert to permanent insurance.

People are twice as motivated to avoid the pain of loss as they are to achieve the pleasure of gain.

If you’ve ever paid extra attention to a “low stock” message while shopping online, you’ve encountered an appeal to that feeling. Suddenly, you’re thinking less about getting the item and more about missing it.

For insurance professionals, the useful lesson isn’t to manufacture urgency. It’s to make potential gaps understandable. Similarly, as you present insurance choices, remember that clients are likely to choose a “middle ground” option.  

3. Versioning for the female segment helped increase disability insurance sales by 85%.

Messages aren't one-size-fits-all. Behavioral science research shows some tactics are more motivating to either women or men.

For example, neuroscientists have found that men tend to be more risk-hungry and women tend to be more risk-alert.

When faced with a similarly stressful situation, men are more likely to take bigger risks when they see a glimmer of a highly rewarding outcome, whereas women are more likely to weigh the contingencies and select a smaller reward they can count on. Using messages customized to your target audience when marketing or emailing can support this tactic. 

4. Anchoring helped establish a 19% increase in disability coverage sales.

The first number or piece of information people see becomes a reference point that they measure everything else against.

That’s why a car dealer may show you the most expensive option first (so the rest of the options seem more reasonable) or a restaurant may list the least expensive items first (to give the impression their prices are reasonable).

The next time you're in a conversation, remember that the first figure you share deserves careful context. 

5. Information Gap Theory helped create a 248% lift in long-term care insurance sales.

When there’s a gap between what someone knows and what they want to know, they take action to close that gap.

A is for apple, B is for blueberry, and C is for…

Humans naturally seek closure and balance—so if you said “cranberry," you’re not alone. (We’ll accept cantaloupe, cherry, and coconut as well. No veggies were considered during the creation of this completely useless example.)

This is also why people feel inclined to answer questions, making probing questions great ways to steer conversations in a specific direction. For example, how do you protect yourself against cyber risks? Or what do you know about cyber risks?

Better understanding is the goal—because building stronger relationships is what matters.

The goal isn’t to outsmart your prospects. It’s to understand them better, explain their options clearly, and build relationships rooted in trust. 

At Glatfelter Insurance Group, our purpose is to help community-minded people fulfill their passions more successfully and safely. That purpose starts with understanding the people behind the organizations we partner with and what they’re working to protect. Because what you and your clients need matters to us.