Life insurance has been around for so long that many producers may wonder if there are opportunities for further innovation in the space. The current suite of products offered by the major insurance companies is wider than it’s ever been, and it seems there is a specific product for every consumer’s individual needs. All that choice doesn’t mean that producers can stop focusing on creative new ways to drive business, however. In fact, increased competition throughout the life insurance space means producers must be more focused on innovation than ever before to differentiate their firm.
The need to innovate
Innovation is a tricky topic, and means different things to different executives and producers. In the life insurance industry today, innovation is rooted in embracing new technologies and using those advances to improve the consumer experience. Social media integration and other attempts to connect with consumers through new communication channels are important, but that’s really one part of the equation. True innovation will come from firms that take the information gleaned from technology outreach and integrate it back into their selling strategies.
Social media platforms as well as tracking services that count the number of people who visit a webpage and their activity provide enhanced insight into consumers’ behavior that can help a producer better target selling efforts. LifeHealthPro pointed out that analyzing all of the data new online platforms and systems can provide may be more than many firms can handle. Effectively collecting and integrating data may require the assistance of an outside firm that specializes in data aggregation.
Further disruptions on the way
The current life insurance climate is still in a state of flux. When surveyed by LIMRA, the majority of life insurance executives said they believe life insurance policies will be sold by a nontraditional source, such as Amazon or Google, within the next year.
Faced with this shifting landscape, producers need to create a more personalized experience for clients that prevent them from going to outside solutions. The increased client awareness provided by data analytics may be the differentiating factor that financial professionals need to set themselves apart during the coming decade.
As the economy continues to improve, the life insurance market will probably expand. Consumers will turn to the most convenient option for life insurance products, and producers can improve their service through data analytics that forge a more direct connection to individual consumers.