It’s that time of year again when the who’s who of insurance show up in the “Other City of Lights,” aka Las Vegas, to explore the latest and greatest breakthroughs in data and technology.
Insurers across the globe are looking for a glimpse into what the competition is doing, who the new startups are, and tools they can invest in to prepare for whatever the future holds. While things are a bit different this year — we won’t actually be in Vegas, but rather our own home offices — ITC promises not to disappoint. And with a bit of insider information to share, I thought I would try to get everyone psyched up and ready to watch.
Register for Insuretech Connect Digital: ITC Global
Even before COVID-19, the industry had enough going on. Some life insurers were just starting to evaluate digital transformation, some were in strategy mode, and some were in full-blown implementations. No matter where they were when the pandemic hit, the entire industry was flung into the 21st century and forced to fast track digital transformation. A big congratulations to each of you for transitioning so well given the many challenges you had to overcome! I’m super proud of my life insurance industry for your quick response and resilience!
So, let’s be honest. Outside of this slingshot experience, many life insurers already had made some great strides toward a more digital environment. And, many insurers already have made the shift to a customer-centric business model from being product-centric. But, with this “next normal” — thank you to Jena Kennedy at LexisNexis for sharing this insightful term, as there always will be another “next” — we need to realign our strategies to understand and meet consumer demands more than ever before.
Everyone is seeing things differently than before. How and where they do business, order groceries, go to school, entertain themselves, everything is different. As an industry, it’s time to listen to consumers’ changing expectations and begin meeting their new needs. And that’s what EIS has done.
We want to help life insurance companies align their compass with the consumer so that everyone is headed in the same direction. So, EIS recently conducted a consumer survey, taking a closer look at consumers’ motivations and preferences to better understand insurers’ opportunities. We also surveyed insurers to see how their digital transformation journey and priorities aligned with the current consumer expectations.
So here’s a teaser of what we learned:
- Globally, 96% of insurance companies report that digital transformation is a must, and the focus is or should be on improving the customer experience. But the transformation needed to address customers’ demand for product personalization isn’t happening fast enough. The main reason, reported by 85% of insurers across the globe, is legacy constraints.
- 20% of consumers report that their primary reason for considering switching their current insurance provider is a lack of personalization of their policies. Consumers just don’t want to pay for something that isn’t completely fitting their needs. Conversely, 58% of insurers rate the industry’s ability to offer personalized products and services as “poor” or “very poor.”
- Another interesting tidbit uncovered by our research is that there is a demand for bundled products, beyond home and auto, including life and health, to reduce the number of insurance companies a consumer does business with. More than 30% of consumers claim that the ability to bundle multiple products and services into a single purchase is one of the most important factors when purchasing products. That’s a great loyalty opportunity if a carrier could accomplish this. 88% of insurers believe that bundling is essential or important to the future success of the industry.
- Engagement brings a lot of different opportunities to the insurer as well as the ability to personalize, but this takes ecosystem development, partnerships, and “frenemies.” 75% of carriers are already partnering with non-insurance businesses, with a major focus on wellness and distribution.
I’m going to miss seeing everyone in person, shaking hands, and passing out hugs, as I tend to do! But don’t fret! You can find my colleagues and me at the EIS virtual booth, and you can register to receive one of the first “Customer Compass” and “Industry Insurer Compass” reports when they’re hot off the press.
And, you can find me on stage (in my own home), with EIS’ Joel Yarde and Daniel Deno, our PWC partner, as we elaborate on these and other stats.
Bookmark our session now!
ITC Global -The Future of Life Insurance: Consumers Voice their Demands
Wednesday, October 21, 2020, 3:45 PM – 4:30 PM EDT
Not able to join ITC or just hungry for more? Don’t fret! We’ll be covering this research and more in a four-part Insurtech Insights webinar series, entitled Life Insurance Reimagined (click the link to register).
Over this four-part webinar series (October 14, 21, 28 & 29), we’ll do a deep dive into each aspect of the customer experience along the entire life insurance value chain, discussing more research findings with a panel of industry experts. All attendees will receive priority access to these exclusive research reports, too!
Be well, everyone. I’m looking forward to the “next normal,” which hopefully includes seeing you in a face-to-face setting! For now, see you virtually at ITC Global.