This is the second of three blogs in The Life Insurance Landscape series.
A study of the life insurance marketplace reveals some interesting facts. There is no doubt it has become more competitive, as consumers increasingly demand faster and more simplified policy binding. But there is a plethora of missed opportunities in terms of meeting consumers’ needs at the right times in their lives. And this is particularly true when insurers aren’t leveraging data that’s easily available to them.
The key to long-term customer engagement
Acquiring and retaining life insurance customers over the full span of the policy lifecycle involves much more than just facilitating the application process; it means connecting with consumers as a trusted advisor and speaking to them in a language they understand.
Life insurance agents have a unique opportunity to get to know their customers. Doing so can put them in a position to guide their clients to purchase the coverage they need as their lives (and protection needs) change. A young, single professional will have very different coverage needs from a couple raising children, buying a home and eventually planning for retirement. These types of life events can open the door to ongoing customer engagement that benefits both insured and insurer, but only if the producer knows about them. That’s where the data comes in. It enables your producers to effectively stay on top of what’s happening in your customers’ lives.
By managing your business in a way that keeps pace with the changes in your customers’ lives, your producers will have the information they need to effectively grow your business, while helping their clients reach their financial goals and feel more confident about their financial planning.
Leverage your in-force book to create customers for life
It’s common knowledge that it is much costlier to acquire a new customer than to retain an existing one. LIMRA’s 2017 Insurance Barometer Study1 indicates that consumers recognize the value of life insurance, and understand that their coverage needs will change over time. But they need help from insurers in fulfilling those needs throughout their lives.
Interestingly, LIMRA’s study revealed that 20 percent of the respondents said they don’t currently have enough coverage. This insight points to a veritable gold mine of new business within existing books of business, for those insurers that know how to mine the information that’s already at their fingertips.
Technology-driven data and analytics management of your in-force books of business are key. It can bring valuable life event-driven information to the forefront, allowing you to open the door to new business opportunities for your producers, while running your business more efficiently—and pleasing your customers.
In my next post, I’ll explain how easy it is for insurers to leverage technology and do just that.
LIMRA’s 2017 Insurance Barometer Study1