Life cover should go beyond the policy
As online sales of life insurance soar due to COVID-19, the industry questions whether the surge will continue after the global pandemic. What this spike demonstrates is that there has never been a more pressing time to get our affairs in order. But while life insurance is vital in today’s world, many do not consider the product a necessary expense. This is our moment to educate customers on the importance of life and annuity services and to impress upon providers the importance of adjusting business operations to meet new customer behaviors.
For every life there is a beginning and an end. It’s inevitable for us all.
Throughout the time in between we expand our families, invest in property, take out private pensions, save… and the list goes on. And for every milestone in our lifecycle there is a need to plan for what happens to ourselves and our families should the worst come to pass. Estate planning services – Wills, Powers of Attorney and Healthcare Directives – are essential for everyone.
In a recent survey by the Life Insurance Marketing and Research Association (LIMRA) on how COVID-19 is affecting life insurance[1] in the US, results showed that there was a shift in how consumers applied for policies, A quarter of respondents reported an increase in online applications and twenty-four percent of companies with online services experienced an increase in applications.
[1] https://www.limra.com/en/newsroom/industry-trends/2020/limra-how-covid-19-is-affecting-life-insurance-in-the-u.s.-and-canada/
Regrettably, life insurance sales are usually slow and the struggle to capture an evolving market continues. Hyper-connected, digital-savvy millennials have replaced previous generations as the primary buyers of insurance and because they are constantly connected they expect immediate responses and gratification, so insurers are looking for new ways to turn business around and meet these changing consumer needs.
The market is no longer settling for the status quo. Customers want to be engaged with. They want to hear from insurers more frequently with personalized touchpoints and cover options; but above all, they want feedback fast and applications to be easy.
Enter the technological revolution. In this age of technology and abundant innovation, traditional insurance models need a serious revamp. It’s time to add services and tools that go beyond claims but rather extend the customer experience and increase the perceived value of their package.
Once seen as out of reach; technology such as Artificial Intelligence, machine learning, blockchain and gamification are becoming part and parcel of business infrastructure and customer service. Adding a technological component to a traditional insurance package will ultimately mitigate risks, cost less and be accessible anytime, anywhere. But not only does this appeal to customers, it can also play a significant role in operational efficacy for insurers.
Across many customer surveys over the past few years, customers have remarked that they would be more likely to purchase a life insurance policy if the insurer offered benefits such as loyalty programs, wellness rewards, cash back, additional coverage and lower premiums. It is now that life insurers should be responding to shifting market dynamics.
Digital legal document preparation is yet another example of an insurtech ‘allied service’ that adds a top layer to the traditional insurance model and increases the value of a life insurance policy. Insurers already have open dialogue with customers centred around planning for the future and protecting families. Estate planning and its accompanying documents are closely aligned with this and can form an essential part of the life offering.
With Epoq’s logic-driven automated document system, insurers can offer life customers a quick and easy way to make a Will or Power of Attorney from the comfort of their own homes as the platform is conveniently accessible online across a range of devices. Essentially, the document software makes the process of creating complex legal documents quick, easy, consistent and affordable. On the left panel of the screen customers will find a series of logic driven questions, the answers to which determines the next set of questions. As these questions are answered the document drafts in real time on the right panel where clauses are inserted, removed or altered resulting in a document that is completely tailored to the end users’ needs. These documents are then stored securely online for easy management and access.
To provide two examples of companies offering Epoq’s digital document service to their policyholders:
- Mutual of Omaha recently introduced a digital Wills and estate planning service for their life insurance customers
- Foresters have announced they are offering a digital estate planning service for their members in three countries simultaneously (U.S.A, Canada and the U.K)
Future-proofing business with modern applications reduces the reliance on legacy systems and business models that are no longer performing. This does not mean that you have to work harder. It means working smarter and more efficiently with the introduction of insurtech elements that will work for your business whilst meeting the needs of an evolving group of consumers.
Responding to shifting market dynamics, the key is to view technologies and concepts that will push the industry forward as essential. Next-generation insurers should do well whereas legacy-minded insurance companies will need to adapt to stay abreast of their competitors. Start now by making it easier for consumers to apply for a policy under very unusual circumstances.