The future of life insurance relies on engagement.
The historical, low-touch nature of the life insurance business makes it difficult for insurers to build strong customer relationships and create customer loyalty. Studies show that the more meaningful interactions insurers have with customers, the greater the customer loyalty. That means, insurers need to better engage their customers in order to build awareness, knowledge, value and trust. In doing so, insurers deliver real value to customers over the course of the entire relationship. The reward? Improved impression, conversion and retention rates and higher net promoter scores that result in a more satisfied and loyal customer base.
Ask anyone who has ever bought life insurance how often they hear from their insurer and the answer will likely be, “I’m not sure. Does receiving my premium notice count?” Even back in the day when agents met with clients at their kitchen table, the opportunities to connect with customers only surfaced occasionally – typically at the initial sale, the birth of a baby, buying a house or perhaps a check-in every few years.
The relationship between the insurer and the customer has traditionally been purely transactional and the blunt truth is that most customers don’t give a second thought to their life insurance policy once they buy it. In fact, only one in five people can name the life insurance company who issued their policy.¹