Life insurers have increasingly digitalised distribution channels in a bid to deliver convenience for customers and extend reach and advice options, according to a new industry-wide survey.
The report from Cap Gemini, looks at trends in the life insurance industry in the wake of the Covid-19 pandemic. It identifies the top 10 trends which also include: providing advanced tools to agents and brokers to help them engage with policyholders and sell more effectively, and using digital channels to supplement direct-to-customer connections.
The Cap Gemini report said more life insurers are also embracing cloud platforms to improve operational agility, speed up innovation and enable seamless collaboration with ecosystem partners. Life insurers are looking into new market opportunities by developing new products to cater to underserved segments such as low-income customers and gig economy workers.
The report also found insurers are increasingly leveraging alternative data sources and AI technologies to generate customer insights and improve the efficiency of processes across the value chain.
Promoting health and wellbeing is another notable trend. More life insurers are encouraging better health habits among customers through wellness initiatives and digital content to bridge customer disconnects and increase policyholder stickiness.
Innovative insurance business models are allowing for more efficient go-to-market strategies. Life insurers are experimenting with pay-as-you-go business models and blockchain to improve customer experience and profitability.
This 2022 Top Trends in Life Insurance Report concludes that this innovation is likely to continue into 2022 and beyond, with life insurers looking to capitalise on emerging opportunities and meet rising coverage demand and evolving customer expectations.