Buying life insurance will always be a sticky subject. In part, because the decision forces us to have a “worst case scenario” conversation and, in doing so, face our own fallibility. But also because “life-insurance companies are still selling the old-fashioned way, broker to customer, instead of empowering people to make their own decisions and participate in the process. Moreover, insurance-policy sales are still laden with excessive face-to-face interaction and mountains of paper”, notes McKinsey.
Like many industries, the life insurance space is making some changes all thanks to technology and digital innovation. This makes it easier for clients to buy insurance products and manage the cover they’ve taken out. Inevitably, going digital cuts out the “middle man”, which, reduces premium costs.
According to FNB Life, the trend is especially popular with millennials who favour buying life insurance digitally. FNB Life has noticed a significant increase in the number of people aged between 31 and 33 exclusively taking out life insurance policies via digital channels.
They reportedly generated over 10 000 life insurance quotes via digital channels during June this year. Lee Bromfield, CEO of FNB Life, says that this trend demands an omni-channel strategy, which gives customers the freedom to use the channel of their choice.
Below are three examples of how modern life insurers will have to keep up if they want to keep their millennial customers happy.
Modernise customer interaction channels: Social-media listening tools allow life insurers to sell products to people based on different life events. Just bought a new home? Had your first child? Now is the ideal time to take out life insurance. As part of using these innovations effectively, insurers must look to automate interactions with their customers so that they are quick and easy to navigate.
Connect channels to deliver a uniform customer experience: Providing your customers with a positive experience is no longer a nice to have, it’s a necessity. Delivering this successfully comes down to doing the necessary research around each customer’s unique pain points, motivations and aspirations. This entails tracking your customers across a number of platforms – from their activity on social media and purchase history to their household’s financial situation and demographics. By blending data from a range of sources, you’ll create a unified view of different customer segments. For example, some customers may be happy dealing with chatbots and feel comfortable using self-service offerings, while others prefer to have a sit down and chat with an advisor.
Create personalised products based on insights from customer data: In the near future, the life insurers that stay ahead will be those that are open to developing products and services, as well as digital experiences, that are personalised. When it comes to risk, millennials want their coverage to reflect their current life stage and risk appetite, with pricing dependent on their behaviour. This requires insurers to develop “product factories” where they can customise offerings based on each individual.
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