Digital transformation has long been on the horizon for the life insurance industry, but the last several months have rapidly shifted the market. With more Americans seeking life insurance and using online tools to find it, advisors are quickly adjusting to meet new demands and digitize many of their processes.
While we don’t know what the next few months will look like, we can expect this: Digital transformation is here to stay for the life insurance industry. Advisors who adapt to the digital landscape by offering best-of solutions can emerge from this situation better equipped for success now and in the future.
Consumer interest in buying life insurance online is high
More than half of all consumers are interested in increasing or buying life insurance, a new survey shows, but 90% do not want to do business face to face. Nearly 9 in 10 said they would prefer to shop online for life insurance.
The traditional thinking – that face-to-face interactions and in-person paperwork are always the best methods for life insurance – is going by the wayside. With banking and other insurance policies handled online, people are accepting more digital transactions via secure platforms in lieu of face-to-face interactions.
This appears especially true for the younger generations. In the same survey, 37% of people aged 18–39 expressed interest in buying or increasing life insurance, double the rate of those aged 40 and over. For many Millennials, it’s the first time they are seriously considering life insurance, and digital connectivity will be an important factor in their decision-making process.
Advisors must act now to meet consumer demand or risk losing market share, particularly among the younger generations. With Gen X and Millennials estimated to receive $68 trillion in assets from their Baby Boomer parents as part of the Great Wealth Transfer, it’s critical to capture these generations before it’s too late.
Advisors: Think beyond traditional online tools
Just a few years ago, “connectivity” simply meant an updated website, phone number, and email address. While these still remain important tools in interacting with clients and gaining new leads, it’s time to go beyond the standard methods.
Life insurance consumers are looking for more seamless and comprehensive digital services that are equally as engaging as in-person interactions. Some of the innovations that can facilitate online communication include
- video conferencing technology, which provides a more personal connection than a phone call or email;
- e-applications for life insurance policies, which can streamline processes for both advisors and clients; and
- dynamic document delivery services that allow advisors to securely send important documents to their clients online and allow clients to permanently and digitally store those documents.
Rather than a piecemeal approach to technology, advisors may want to consider adopting a more comprehensive digital connectivity platform. Look to some of the new insurtech platforms, like LegacyShield, which allows clients to safely store, manage, and share important insurance and financial information with loved ones at the time of their choosing. It also facilitates instant, transparent and secure communications between clients and advisors.
Whatever stage your practice is at with digitization, now is the time to review your business and see what you can adjust and improve upon. For more information on insurtech technology, read our blog on how it allows you to stay connected with clients, and grow your business.