1. More interest than ever from millennials in traditional term life insurance
COVID-19 has raised consumers’ awareness about the importance of having life insurance coverage. A LIMRA survey found that about 31 percent of consumers said they are more likely to buy life insurance because of the pandemic, with an actual 21 percent increase in total U.S. life insurance premiums in the second quarter of 2021.2
Greenwald Research, a Washington, D.C.-based consumer research group, recently released survey research describing how millennials have responded to the COVID-19 pandemic with renewed interest in life insurance. Concerns regarding personal well-being, family health, and safety amid the pandemic have driven millennials to explore life insurance options.3
LIMRA’s survey found that 45 percent of millennials are more likely to buy life insurance because of COVID-19.2
2. The power of education
With the changing demographic of insurance purchasers, communication styles need to be changed.
Research has shown that while these younger customers will go online to research their needs and products, they don’t want to do everything online. They prefer to talk to someone. They want research and information from trusted advisors who can point them to the products that meet their needs. Agents and brokers will find them more knowledgeable when they meet.3
Experts recommend that insurance marketers respond to the concerns of their customers and use education as a marketing tool.3
Which brings us to the third trend.
3. Enhanced customer experience
In recent years, consumer behavior and trends have shifted dramatically, heavily impacting the health and life insurance markets, and insurers are looking to keep their finger on the pulse of their consumers’ needs.4
The next decade could see a fundamental reorientation of the insurance business. The traditional focus on products, policies and paying claims will shift to services, experiences and creating value. Put another way, what customers want and need will be the dominant driver of innovation and growth, not what insurers want to sell or have always sold.5
Many insurers will shift from a policy-centric business model to a customer-centric one, ensuring that the customer is at the heart of everything they do. The carriers that do this well will likely find success in 2023 and the long term.6
Underwriting is already the area of greatest transformation within the insurance space. This trend looks set to continue into 2023 and beyond. New technologies are driving fully automated or data-driven programs that streamline the process. Speedier underwriting processes can enhance life insurance carriers having a modern agent/customer experience that is fast and self-service.7
So, while life is short(er), the right life insurance policy — with agile, innovative and empathetic service — can make it easier to live well.