Life and annuity (L&A) insurance companies want to drive top-line growth through enhanced customer experience and innovative products. But this is easier said than done. Many consumers see life insurance as confusing, expensive and difficult to buy. Meanwhile, insurtech companies — start-ups offering new, digitally native approaches to products and distribution — are seeking to simplify the process and meet rising consumer expectations. To avoid getting “Uberized,” traditional insurers need to dramatically improve the customer experience that they deliver and develop new solutions based on timely, accurate information drawn from consumers’ specific needs and preferences. Doing this requires a deeper embrace of artificial intelligence (AI), big data and predictive analytics to better understand and then more precisely target customers based on their hyper-personalized needs.
Appealing to today’s consumer: Convenience plus support
An attractive way to spawn growth is expanding direct-to-consumer (DTC) distribution, while leveraging the latest technologies to provide customers with the convenience they have come to expect in other industries. Simplifying systems and operations is an essential first step to support direct-to-consumer selling as well as other potential distribution channels that are likely to offer a simpler transactional approach. Figure 1 offers a snapshot of the key elements of a successful DTC strategy.