What the Future of Life Insurance Looks Like
Predictions for the Life Insurance Industry,
As is the case with so many industries, the life insurance industry is changing at a rapid pace. As the advancement of technology continues to increase at an accelerated rate, so does the market and the way we sell life insurance policies.
There are many factors that will affect the future of the industry, including a decreasing agent workforce and increase spend on digital marketing. This shift in strategy not only effects who sells life insurance, but what types of life insurance plans will be sold.
Products like term life insurance will be sold at a higher rate due to the fact that they are easy to understand, affordable and simple to attain. On the other hand, cash value plans that have an investment focus are not designed to be easily sold or promoted online. These complex plans will see a decrease in focus and sales, as agencies look to spend more on digital marketing.
Comparison Shopping
Comparison shopping is on the rise as access to information and pricing is made more easily available online. As Millennials age, they’ll use their savvy online shopping skills to perform price comparison research before choosing a life insurance policy. The future life insurance customer will want to compare coverage and rates before choosing a provider. The winners of the space will offer unbiased comparisons of life insurance products on the market. Mastering this skill is one way independent agencies can succeed in the new life insurance market.
Selling in the New Age
With the creation of marketing automation and intuitive software, selling life insurance today looks nothing like it did in the past. Insurance agents today have access to screen sharing tools, where they can provide intuitive reports and customized quotes in a professional manner. With marketing automation, agents can schedule outreach days, weeks and months in advance. Logic can be used to determine how many touches clients should receive in order to close more life insurance leads in a shorter amount of time.
Underwriting in the World of Tomorrow
In the future underwriting will probably be a hybrid of technology and human review. Insurance agents can close more deals the faster the underwriting process becomes. It will also improve customer experience and satisfaction.