Life insurance can be complicated. The underwriting process can be invasive. The jargon can be confusing. And many people don’t discuss the subject with family or friends.
This often makes life insurance products difficult to understand for some consumers. And when consumers don’t have the life insurance protection they need, the results can greatly affect their family’s financial future. Our challenge is to make life insurance more understandable and accessible for the next generation of life insurance customers.
Related: How to improve your clients’ life underwriting odds
The innovation needed to drive that change is, at long last, taking root. The product, process, and benefit changes beginning to take place in the industry could transform the way tomorrow’s customer views our products and services. We have an obligation to ensure life insurance is no longer confusing to so many people who absolutely need the protection it provides.
Here are 5 trends to keep an eye on as the industry rises to meet the challenges of the future:
Trend #1: Underwriting will be smoother. The most important change to the customer purchase experience in decades is arriving now. New data sources are providing life insurance carriers with the information they need to streamline the underwriting process.
Related: How to disrupt the high-tech disrupters
These new underwriting approaches will quickly evolve. Many consumers will be able to protect their families without having to complete a medical exam. Agents and carriers need to share the message about this new approach to reverse the decline in individual ownership of life insurance.
Trend #2: Innovative new products will be introduced. Increasing life expectancies will positively impact future policy designs. Tomorrow’s products may not exist today, or they may be something we are familiar with bundled in a new package. Hybrid products will continue to proliferate.
It’s possible life insurance will be incorporated as a feature of other products. New features and benefits that can meet the unarticulated needs of millennial consumers will emerge.
In fact, we are already beginning to see creative new riders hitting the market. The next few years promise to be fascinating, as new product development continues unabated.
Related: Innovative thinking vs. innovation: key differences uncovered