It is Life Insurance Awareness Month once again! This is a time when the life insurance industry reflects on the magnitude of the mortality protection gap, while making conscious efforts to educate the general population about the importance of life insurance and assisting people obtain the appropriate coverage they need.
Did you know that 1 in 3 households would have immediate trouble paying living expenses if the primary breadwinner died? According to a Swiss Re study, life insurance sales has declined at a dramatic rate and currently at a 50 year low. This situation is mostly pronounced with the middle market and millennial households relative to the affluent population. It is interesting to note that close to half of the millennial population belong to the middle market according to data from US Census Bureau and about 70% of the middle market have been identified as underinsured.
So the question for our industry is how can we effectively engage this particular segment of the population? There are clearly new and innovative ways today to connect and attract, transact, and keep them insured (retain), utilizing some the new data sources from big data, digital technology, the internet of things, behavioral economics etc.
With millennials being digital natives and shaped by the seamless shopping experience of technology, one effective way to engage and sell life insurance to them is by using fluidless underwriting with predictive analytics. Combining these two powerful technologies can help reduce the friction in the current buying process, cut down the wait times of paramed and medical exams, reduce the cost of underwriting and, ultimately insurance premiums, and finally reduce the current invasiveness of underwriting, thereby improving their overall buying experience. Leveraging predictive analytics tools and new data sources with fluidless underwriting complements the protective value of the traditional underwriting process. Transitioning from non-med underwriting to fluidless underwriting with predictive analytics has shown to help bring mortality levels closer to fully underwritten mortality. The process creates a win-win situation for both the insurer and consumer.
The increased usage of wearable devices has presented new opportunities to engage consumers and build long-term relationships by motivating and rewarding healthy behaviors. Data collected in real time will become increasingly relevant in risk measurement and assessment, and may radically transform underwriting. The good news is 51% of millennials, according to a study by LIMRA and Life Happens, are willing to share wearable device data with insurance companies provided they will receive financial incentives for doing so.
To hear more about how to engage the middle market, please join us on Sept 21 for the Swiss Re L&H webinar on the subject "5 Ways to Engage the Middle Market". To
register Click here
Category: Funding longer lives: Health/medicine, Social contract
Location: Fort Wayne, IN, United States