Two existential threats to the life and annuity industry
Traditional insurers are facing the new generation of digitally-savvy customers who are under-protected and unengaged. Insurers who are willing to self-disrupt, adopt nimble business models, and deliver value-added services will be the ones to write the story of their own future.
The life and annuity insurance market is experiencing a slowdown. The shifting product landscape, historically low returns on investment, legacy technology, and stringent regulations are increasing buyer reluctance in many markets. Additionally, the high-value, low-friction experience offered by Insurtechs appeals to today’s digital customer, and traditional players are looking at ways to keep up.
So, what can revive the insurance carrier’s business?
Deloitte Global studies the challenges facing the insurance industry, and discusses five key attributes that can help insurers retain customers and revive their business. They include:
- True customer centricity: An actionable customer segmentation strategy to deliver a unique value proposition across all stages of the customer lifecycle.
- Product agility: It involves building a modular product design in collaboration with partners in the insurance and technology ecosystem to support episodic and multi-product offerings.
- Real-time delivery through a personal mobile device: Providing readily discoverable value-added services that are available on the customers mobile device.
- Value-driven ecosystem partnerships: Collaborations with a network of independent providers who move beyond a product, and deliver value to the digitally-enabled customer.
- Relentless and continuous operational efficiency: Automation that leverages emerging technologies such as artificial intelligence and blockchain to eliminate value-depleting processes and improve customer experience.
Read the report to learn how insurers of the future can go beyond isolated investments in product innovations to creating segment-driven value propositions to beat competition—or convince non-consumers to engage.