Are you ready for what life insurance may bring in 2020 and the following decade?
Just as trends and seasons change, so does the life insurance landscape and the corresponding ecosystem. As a professional and motivated insurance agent or agency, it is your job to understand the needs of your customers and how those align with any emerging trends. Below, we highlight some things to be aware of as we head into the new decade.
1. According to research from Ernst & Young, demographic shifts in the coming decade will bring both challenges and opportunities to insurers across the globe. “The mass retirement of baby boomers will challenge the balance sheets of life and health insurers in particular. On the other hand, as governments pull back from providing pensions and the retirement savings gap grows, insurers can develop new products to deliver the security many consumers are looking for. As millennials and younger generations in the developed world delay marrying, buying homes and achieving other traditional milestones, incumbent insurers will have to find new value propositions to build enduring relationships with them.”
Be sure you are ready with solutions for your potential clients that include substitute income streams in case of emergency in lieu of traditional pension plans and IRA’s.
2. As digital disruption continues to upend many industries, insurance included, insurance agents should understand how technological advances of data systems will ultimately impact interactions with current and future policy holders. “AI and machine learning have already begun to transform product development, underwriting, pricing, and fraud prevention. Data collected and analyzed by AI informs product design that truly meets demand, further customizing insurance offerings. Underwriters will continue to receive assistance from more refined tools that aid them in setting accurate prices and reducing risk. And AI can learn and adapt to thieves’ behavior in real-time, shifting quickly to block fraudulent claims.”
3. Advanced analytics will fuel advertising spend and innovation even further, resulting in higher quality leads and prospecting practices. As Deloitte’s recent analysis points out, “Targeting consumers during transformative life events can significantly increase the likelihood of consideration of an insurance marketing message.” The takeaway here: Know where and when to look for new customers, and approach on their terms. If you’re not fully equipped with the know-how or technologies to do this, don’t fret it, as we are.
*Read the Ernst & Young article here - https://go.ey.com/38oTmvd
*Read more about digital disruption here - https://bit.ly/31OpKVv
*Read up on the Deloitte research here - https://bit.ly/31Ugyiv
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