As the insurance industry evolves, customer needs are at the forefront of shaping its future. Growth strategies and innovation agendas must be informed by customer needs, objectives, and aspirations. It’s crucial to consider advisors and regulators as important stakeholders, essentially treating them as customers as well.
Enabling technology and strong partnerships are key for insurers looking to execute holistic value propositions. This involves deeper and more meaningful engagement with various customer types, addressing the needs of currently underserved groups like women, who will likely control a greater portion of wealth in the future. Ecosystems are emerging as the most effective models because insurers can’t meet consumers’ continually shifting needs across all life stages independently. The group insurance and employer benefits market already highlights the benefits of these ecosystems. Globally, insurers are creating ecosystems to broaden their offerings and address diversifying needs, particularly in mental health and holistic wellbeing. Solutions should integrate protection, savings, and investments, adaptable to customer needs across five critical life stages.
Getting Started on Financial Wellness
Insurers and annuity providers have long recognized the need to engage younger consumers, but have faced challenges in building connections. The initial step is to show the value of insurance in relation to financial goals beyond retirement savings. Addressing the increased post-COVID demand for protections against short-term economic shocks, such as income loss or unexpected hospitalization, presents an opportunity. Portable micro-policies and lifestyle insurance that adapts over time could appeal to young people beginning their careers.
To succeed, insurers must provide individuals with full digital experiences via their mobile phones. Additionally, brokers and advisors need incentives to develop and maintain relationships with individuals who have limited assets for investment.
