The aftermath of the COVID-19 outbreak may have been the most epochal for the life insurance business since its privatisation two decades ago. Adversity has brought out the best in the life insurance industry and spawned a plethora of new ideas. For me, the previous two years have been a lesson in resilience, bravery, and the capacity to persevere in the face of adversity.
Since the epidemic, the demand for life insurance has grown significantly, as the uncertainties of life have become painfully obvious. The health and well-being of oneself and one’s loved ones has become a priority, making financial security a critical duty. Naturally, protection products such as life and health insurance have become a must-have in every financial portfolio.
The favoured means of purchasing insurance are also changing. Customers are not just comfortable purchasing online, but also connecting with advisers on a variety of channels. As millennials become a greater part of our economy, this tendency is expected to intensify, leading insurers to reconsider the client experience across all distribution channels.
As we approach 2022, life insurers will let consumers drive the change for the post-COVID future. Here are some important patterns we anticipate will develop in the next year.
Customer safety will continue to be a top focus.
The epidemic has highlighted possible threats to one’s life and income. Term and health insurance plans of all colours will continue to be in demand, as ensuring economic continuity for loved ones and an increased awareness of the need for fundamental protection has become a concern for many.
While there was already a growing awareness and desire for income solutions before to 2020, the epidemic has heightened the necessity to safeguard one’s income and generate an other source of revenue. As a result, life insurers will focus their efforts on solutions that satisfy these customer concerns about income fulfilment and other goal-related criteria such as retirement.
Digital technologies
Digital technology, like many other disciplines, will continue to garner major investment. Life insurers will use digital technology to simplify the purchasing of complicated products and the fulfilment of service requests. Customers from the insurance industry, who are used to an e-commerce-like experience online, will have a high expectation of an expedient onboarding procedure. As a result, insurers will spend significant resources in redesigning customer experiences over the lifespan of a policy. Life insurers will concentrate on providing a great client experience, from AI-enabled Chatbots to simple and speedy fulfilment of service requests.
Companies will also explore for methods to completely integrate their customer acquisition and service capabilities with those of their distribution partners in order to provide a unified customer experience over the next several years. These technological efforts will be crucial in encouraging innovation, achieving customer-focused company goals, and driving future development.
Data Science and Analytics investments will increase.
A greater focus will be placed on developing and cultivating data-related technologies, notably gathering, analytics, and protection. Artificial Intelligence and Machine Learning will aid in gaining a greater understanding of client personalities and, as a result, will open up new possibilities for catering to their demands. ML will also play a significant role in the optimization of other processes like as risk protection, client retention, advisor activation, and so on.
Protecting client information by implementing adequate security measures and access restrictions to information and applications will be one of the top technology-driven concerns for enterprises.
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Increasing insurance accessibility
Life insurers will continue to develop multi-channel capabilities to support and educate consumers whenever and whenever they choose. Simply stated, making insurance more accessible will be a critical business goal. Companies will seek out additional strategic alliances in order to greatly smoothen the life insurance purchasing experience for clients. Insurers will strive regularly to enhance the service experience in the coming years by investing in omni-channel capabilities over time.
The insurance advice approach is being strengthened.
As clients regard life insurance as a kind of financial protection, insurers and their distribution partners will take an insurance consulting approach. Understanding the requirements of customers and advising them on acceptable solutions to problems will become the norm.
In the short term, life insurers will continue to look for ways to rethink their product offerings, customer experiences, and business strategies in order to drive innovation and quicker growth. The development of digital technologies will provide a high level of customisation, assisting customers in identifying and meeting their specific demands. As insurers experiment with new and creative products, sandbox trials are expected to expand.
Overall, the year 2022 will pave the way for considerable investments and innovation in the insurance business during the following three to five years.