Filed Under:Markets, Company News

Emergence of “nonstop customer” offers opportunity for life insurers

The evolution of the Nonstop Customer will have a particularly strong impact on the life insurance industry.
The evolution of the Nonstop Customer will have a particularly strong impact on the life insurance industry.

As life insurers know, customers have changed considerably over the past few years.  They are more empowered, have higher expectations, are more prone to switching providers, are more connected — to companies and to each other — and are more diverse, both regionally and globally. 

Yet, many life insurers still operate within a “one size fits all” sales and service model that prevents them from responding effectively to this rapid evolution in customer needs and behaviors. 

1.  Transforming the upfront “discover” process.  Insurers should play to their strengths by making available the advice and education that customers need to make an informed decision about a complex product.  This information must be easy to obtain and continuously available, and the customer must feel in control.  To do this, insurers will need to adopt strategies and techniques used in consumer product marketing, such as segmentation and propensity-to-buy models, as well as a strong presence on social media, to which consumers are increasingly turning for advice.

2.  Shifting from a product-based to a solution-based sale.  Carriers should shift their focus from selling products to providing solutions to customers’ problems.  This approach – combining product, service and experience – enables carriers to position themselves as approachable experts, valued by customers struggling to make a complex purchasing decision.  This also helps neutralize the trend to commoditize life insurance and treat price as the key determinant for choosing a provider. 

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Nichole Morford

Nichole Morford
Managing Editor

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