As the L&A industry enters a new decade, many recognize the significant need to improve, both operationally and innovatively, to create immediate business results and long-term value. However, many L&A insurers’ ability to do so has been hindered by significant legacy debt and prolonged low interest rates that have put strains on both profitability and the ability to invest in operations and innovation. Adding to these pressures are rapidly changing risk needs and customer experience expectations that require new products, services and business models such as:
- Portable employer benefits and growth in voluntary Critical Illness, Accident and Term and Whole Life.
- On-demand life insurance to cover specific events, rather than continuous coverage.
- Variable pricing based on continuous underwriting driven by behavioral, health and lifestyle data shared by customers.
- Simplified issue “fluidless” term life delivered digitally and leveraging AI/ML and third-party data for underwriting and pricing.
- Convergence of health/wealth/life as an ecosystem.
Smart, innovative companies will see these as opportunities to create new markets for growth. Others will see them as threats that may end up making their businesses irrelevant. Many of these are thinking of their scope too narrowly, only as providers of life insurance and voluntary benefits. Instead, they should be thinking of their scope more broadly, as playing a bigger role in the wider ecosystem encompassing their customers’ life, health and wealth well-being.
Majesco recently completed new research with consumers to surface insights about what they are already doing in the life/health/wealth ecosystem, and what else is coming up on the horizon. Watch this webinar to learn how your next generation of customers is changing the rules for L&A and voluntary benefits.