It’s been said that the battle between a startup and incumbent can end only in one of two ways: either the incumbent achieves innovation, or the startup successfully scales. However, Novarica has found that InsureTechs typically serve as advantageous partnership opportunities rather than industry disruptors. Incumbent life insurers are beginning to take a page out of the InsureTech playbook—by focusing on both the digital experience of selling life insurance products and empowering their agent force.
The rise of InsureTechs and the shift to direct online by innovative carriers are challenging the notion that life products can only be sold, not bought. Life carriers are starting to experiment with data-driven underwriting, product modularization, and language simplification in order to create a product that appeals to the ever-growing Millennial market. To further target this demographic, insurers are leveraging social media, segmenting the Millennial market into “personas,” and using gamification to target the right customer at the right time. And as the direct-to-consumer space continues to expand, insurers are focusing their efforts on optimizing their mobile platforms and partnering with InsureTechs to equip their agent force with tools to better serve their digital customers.
Incumbent life insurers gain market advantage by improving customer engagement methods, attracting new clients with cutting-edge technology and tools, and cultivating advantageous partnerships with InsureTechs. For more on the impact of InsureTechs on life/annuity product and distribution strategy, see our latest brief on the topic.
Add new comment