Consumer expectations regarding digital services continue to escalate, and brokers must respond to capture this younger demographic. “Technology has always been disruptive, now consumers are disruptive, too.”
“Technology has always been disruptive, now consumers are disruptive, too,” was the message from MIT Technology AgeLab Director Joseph Coughlin at the LIMRA Marketing Research Conference this year, and it’s one that’s resonating with many in the life insurance industry.
In fact, a recent LIMRA survey of policyholders revealed that nearly two in three customers who own mobile devices said they already or plan to use those devices to access services for their life insurance policies. Unsurprisingly, the younger the survey respondent, the more likely they were to expect that kind of digital service — more than half of Generation Y compared with just 15 per cent of Baby Boomers.
Male policyholders were also more likely to have accessed online services, as well as those with college degrees and those in high-asset households.
“I want local access (on my life insurance company’s website) to all of my insurance needs,” said one male respondent. “To me, using my mobile iPad is the same as my PC, so I want it all.”
Despite this preference, just 29 per cent of life insurers provide that level of mobile service. While 44 per cent say they plan to offer mobile service in the future, this indicates a mismatch in the industry — and one brokers may be able to help solve.
Asking consumers how important mobile access is to them will allow brokers to eliminate many carriers from competition and match consumers with providers based on a different set of criteria, providing service to the customer and a differentiation for themselves.