Chat windows, faster policy statements, intuitive agent portals and robotic technologies are among the new generation of weapons insurers intend to use to compete with “born-digital” companies.
One of the future challenges facing the life insurance industry is attracting human capital—finding the kind of high-quality employees it will need to be successful in a rapidly changing world. As Baby Boomers retire, companies must recruit, train and develop new generations who think, behave and work differently than past generations.
Welcome to the 7th edition of SCORacle, which contains some variation to the usual Underwriting and Claims focus and includes articles by 3 young students that spent some time with SCOR in the summer to provide their views of our industry. This provides a fascinating insight into the thoughts of our consumers of the future. In addition, we also have some interesting information from our Consultant Cardiologist on two commonly seen conditions that from an underwriting perspective we should keep an eye on and for our readers who are Claims assessors, we include some information relating to changes to death certification.
By integrating data and advanced analytics into their processes, life insurers can capture one or more lucrative niches, including millennials in the middle market, before the competition does.
Seeking to appeal to Generation X and millennials who value speed and convenience, Lincoln Financial has introduced a term life policy that aims for approval in as little as 20 days. That's half the time it takes to underwrite traditional term life coverage, the company said.
Demand for mortality protection is closely tied to life cycle. At the early stages of adult life, the need for income protection rises as people finish their education, start a job, get married, buy a house and have children. In a few coming years, the millennials—those born between 1981 and the late 1990s—will be the segment with the largest need for mortality protection.
(Article starts on page 28)
Millennials have shown a clear shift in interests and priorities from other generations. They are willing to pay more for a product so long as they perceive its added value.
- Appealing to Millennials - Think Smart, Not Hard
- Get Insured? Generation Y Asks "Why?"
- Appetite for Life Insurance - A Survey of UK Millennials
In just 10 years, by 2025, millennials will make up an estimated 75% of the global workforce. They will inevitably change the landscape of numerous industries and re-shape the way we think about work. With the average age of a U.S. insurance professional currently at 59 years old and one-fourth of the industry is expecting to retire by 2018 - this holds huge implications for the future of insurance.
Millennials expect companies to enable them to interact and buy online, for their websites to make everything easy and convenient. Yet relatively few companies make it possible for them to complete the entire purchase process online. Further, only 46 percent of life and annuity companies provide electronic signatures for customer service transactions. It seems clear that in many cases, companies are not meeting Millennials’ expectations.