I’m excited to share findings from research that iptiQ by Swiss Re has sponsored with Insurtech Insights. Until March of 2020, if asked how consumer behavior shifted in relation to buying life insurance, I would have said, ‘Not very much.’
Around the globe, the infrequency of the life insurance purchase and the strength of traditional distribution held back progress in customer expectations, as compared with more frequently purchased property and health covers. Overwhelming, the majority of policies and premium followed traditional patterns and channels. Change was happening, but it was slow, and it wasn’t customer-led.
Covid-19 has changed all that. Suddenly, carriers and distributors are under immense pressure to modernize— by which I mean ‘digitize.’ As reinforced in this study, consumers are pushing strongly for a more efficient way of buying coverage. Mid-market consumers are now demanding accelerated life products and eschewing fluid-based underwriting. In the last six months, the industry has leaped forward 10 years. The research reveals the new mid-market baseline, which is that sales and servicing must be seamlessly digital and responsive to consumers’ omni-channel buying preferences.
This research also reinforces the need to solve for consumers who are looking for health product choices that exceed the vertical integration limits of any single insurer. The hot word in the industry right now is ‘co-creation’— carriers and platforms are coming together to create new possibilities. ‘Not invented here’ simply can’t compete with ‘best solution wins.’ At iptiQ, we’re connecting data, devices and people to enhance existing customer value chains.
Yes, the virus is reshaping our industry in real time, rapidly accelerating long-term underlying trends in the space of mere months. This research indicates that new consumer habits formed now may endure beyond this crisis, permanently changing what consumers value, and how and where they shop. By researching these changes that are happening now, we are sharing insights of what insurance businesses should do to start preparing today.
We welcome you in joining us for what’s next.