More resilient REAL ESTATE AGENTS: Selling Pure Life Insurance to increase real estate transactions

The real estate sector, already severely affected by market uncertainties, has found a lifeline in the support offered by the insurance industry, in particular through credit protection insurance and pure risk life insurance policies. In this article, we explore how the distribution of pure life insurance policies can increase the resilience of real estate agents and stimulate real estate transactions in a context of economic uncertainty.?

Current state of the housing market

Estate agents were already navigating turbulent waters due to post-Covidian economic uncertainty, higher interest rates and households undecided about buying property. The situation was exacerbated by the Russian-Ukrainian war and then the Israeli-Palestinian war. This professional category risks seeing its margins eroded. The cost of money is much higher than in the past, and many families are very reluctant to buy property, often fearing that they will not be able to meet their financial commitments.

The role of insurance in supporting the property sector

In the same way that the banking sector provides mortgages to finance the purchase of property, the insurance sector provides support to the property world (not just estate agents, but also builders, surveyors, architects and engineers) through credit protection and life insurance - pure risk. The result is greater peace of mind for customers when taking out mortgages and financial protection in the event of the death of the insured. In this case, we will focus on Pure Life Insurance. This very simple product guarantees a lump sum in the event of the death of the policyholder, for the benefit of their family or those named as beneficiaries.

Importance of financial security for the client

Recent surveys and focus groups conducted by our team have shown that estate agents are interested in selling pure life insurance policies as sub-agents or business carriers. This is not only to increase their profits by diversifying their income, which is no longer limited to brokerage and advisory commissions, but also to the commissions paid as a result of second-tier insurance sales. The main objective is to increase the client's confidence in buying a property, to facilitate transactions and to guarantee the agreed commission. Often the insurance commission is of little importance to them, what matters to them is that this practice increases the customer's confidence in the purchase, unlocks the property sale and brings them the agreed commission (be it 1, 2 or 3% of the property value).

The sale of pure life insurance policies by estate agents is proving to be a successful way of increasing the resilience of the property sector in an uncertain economic environment. The importance of providing financial security to clients can be the key to stimulating transactions and ensuring the economic sustainability of estate agents.