In our interviews, several executives said they believe they must create an organization-wide culture that supports change management and sustains it over the long term. But thus far, as our survey results indicate, change-management initiatives have been difficult to implement. Moreover, the industry has struggled to attract younger talent that is more open to new ways of working. For life insurance.
Customer Experience. Although the concept of customer centricity is hardly new to the industry, it may be new to some individual life insurance companies. The issue of customer centricity is becoming increasingly urgent as shifting consumer behavior and demographic change alter the market for life insurance. Advisors typically encourage people to purchase insurance at “trigger points,” when life events such as marriage, the birth of a child, or a home purchase introduce risk. But people are marrying later, having fewer children, and postponing home purchases. And when planning for long-term financial security, consumers increasingly are opting for instruments such as mutual funds, IRAs, and contribution plans such as 401Ks, which are much easier to understand and may yield higher returns. What’s more, most life insurance providers require applicants to fill out long paper forms by hand—and then, in many cases, wait a month or more for a decision.
Some providers—such as China’s Ping An Insurance—are racing into the digital age by offering consumers holistic, one-stop financial services through their platforms. But most insurers continue to focus on traditional life products. And because life insurers tend to sell their products through intermediaries, such as independent agents and financial advisors, carriers have fewer opportunities to collect and act on direct consumer feedback to improve the customer experience.
Aarp life insurance
Executives in our study cited a number of specific challenges, such as growth across new customer segments and the need to master new digital technologies, that relate to the perceived need for a more customer-centric organization. Executives recognize that understanding the needs and experiences of all customers—and creating a streamlined digital experience for them—is vital if their companies are to remain relevant and valuable over the long term.