Is the life insurance industry evolving fast enough to meet consumer expectations?
The life insurance and annuity industry has been in a race to catch up with other industries in the adoption and use of digital tools and artificial intelligence. How much progress have life insurance and annuities made in that race to catch up? Two industry experts gave their views during a recent webinar by Sureify.
Andrew Burge, vice president of life insurance development at Nationwide, started his career in banking and was struck by how far behind the life insurance industry was in terms of using digital tools.
“A lot has happened since then,” he said. “We’ve gone from lots of forms and paper applications and paper underwriting to accelerated underwriting and online tools.”
“We’re now using data to streamline underwriting. We’re about to enter a new era where it is easier to do business.”
Burge called for the industry “to do more with digital and e-commerce and just making it easier for people to buy the product.” He said many of the processes in the insurance buying journey “are still rooted in forms.”
An aging population means an increased need for life insurance products. Burge said Nationwide is focusing on being more customer-centric.
“We’re trying to put the customer in the center and build the outcome in mind.”
Life insurance industry experiencing an evolution
The life/annuity industry has been experiencing an evolution in a number of areas, especially product design and digital engagement, said Don Desiderato, founder and CEO of Mantissa Group, a strategy consulting firm that serves CIO executives and their leadership teams.
One issue that has evolved is the growth in product design around the popularity of hybrid products, he said. “It’s the ability to combine benefits and create something more consumer oriented and less carrier oriented.”
“We’re seeing holistic, customer-first approaches and lifetime value,” he said. “With the aging population and longer life expectancies, we’re seeing products morphing into retirement solutions.”
Desiderato also cited increased use of online channels and platforms to reach underserved markets.
The digital world “was foisted upon us – it just happened,” he said. “I’ve been able to see how carriers responded to this. We’ve begun to respond and deconstruct this monolithic technology that was there for decades. We’re not there yet, but we’re taking actions to make it work.”
But an increased use of technology won’t replace the agent, Desiderato said, citing the complexity of life insurance and annuities as a major reason why consumers need human help.
“Life insurance and annuities are a critical component of any long-term financial plan. These are not things you navigate on your own over time. Human trust is a major factor in financial decisions like this, and agents are an important dimension of the overall puzzle. Agents are your financial wellness advocate and part of the puzzle.
“The most successful agents are the ones who embrace digital channels because it makes their jobs easier.”
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