Would you be surprised to learn that Gen Z consumers – the oldest of whom are turning 24 this year – are the most likely of all demographics to seek out information on life insurance? Coming out of the COVID-19 episode, few things are really surprising – but this discovery is.
PYMNTS ‘new Life Insurance Engagement Report: Consumers, FIs, and the Digital Path to Life Insurance Purchasing, a collaboration of Franklin Madison, is full of these types of openings because banks and financial institutions (FIs) view insurance as a new revenue stream.
Researchers surveyed more than 2,300 consumers about their behaviors and attitudes towards life insurance for the report, concluding that “the increase in the number of new policyholders, young consumers and an increased general interest in insurance products -life among young people have had a significant impact on the insurance industry landscape. Opportunities now abound for insurers to engage new audiences and build lasting customer relationships over time.
It is clear that “consumers want to compare prices, pay and interact with their suppliers however they want and when they want”, but they want to close the deal with another human being. According to the report, “our research shows that consumers prefer to discuss their life insurance choices in person before purchasing, even when the decision-making process that leads them to a particular insurance product passes through digital channels.” .
This means new flows of money and a deeper engagement for banks and FIs who decide to leverage their trusted positions, giving consumers the cover they seek after COVID.
Consumer confidence, a decisive factor for post-pandemic insurance
While researching for the new Life Insurance Engagement report, we found that 60% of respondents say they have life insurance. This is an interesting group, but what is even more interesting are the 40 percent of consumers who said they had little or no life insurance.
According to the report, people without life insurance include baby boomers and seniors (38%), Gen Z (40%) and Gen X (36%). These groups “represent audiences that are considerably underexploited for insurers. Consumers who chose not to purchase a policy gave reasons that were primarily the result of exposure to poor or no marketing messages, such as a lack of clarity on their life insurance options or concerns. regarding premium costs. Most of these consumer concerns could be addressed by insurers implementing effective consumer marketing and education plans that address key consumer concerns about life insurance.
The way people learn about insurance is where the rubber meets the road for banks and FIs. Consumers use a mix of social and online sources, such as friends and family (25%), customer comments and reviews (19%), and social media (10%) when searching for information on the market. ‘life insurance. “Insurers can leverage these connections by creating a 360-degree marketing strategy based on data and content,” according to the report.
Access to information is a “critical determinant in the life insurance purchasing journey of a significant number of consumers,” the report said, adding that around 37% of consumers are uncertain whether their FI offers life insurance, and 32% of consumers want more information about the life insurance products of their FIs. “The possibility for insurers to ‘do it right’ is clear: information on life insurance products must be readily available, easy to understand and unambiguous about affordability, product function and relevance by in relation to the unique needs of each audience, ”the report says.
People who need people
With 35% of life insurance clients preferring live human interactions with brokers and advisors over other means of purchasing insurance (self-directed web searches are the second most popular method at 31%), banks and FIs are rarely faced with such easy product decisions.
According to the Life Insurance Engagement Report, 38% of consumers think life insurance should be more affordable, while 30% think buying it should be easier. More importantly, “… 29% of customers who had previously purchased insurance from their major financial institutions said they wanted better information from their suppliers. This means that insurers have an open invitation to deliver meaningful marketing messages to consumers motivated to hear about new life insurance products and payment solutions that make those products more affordable.
To this end, the report states that insurers and financial institutions wishing to engage in this business “must provide an efficient hybrid model of customer service, one that combines clear product information with live chat or SMS support. for independent customers interested in human-centric insurance. – shopping experience.