Life insurers that adopt modern operating systems, allowing customers to move seamlessly between different distribution channels, will be the most successful in the future, according to a white paper.
The white paper, written by Bravura Solutions product manager for life insurance, David Loader, said the best-performing life insurers will transition their operations to an open enterprise architecture that supports sophisticated digital experiences.
“Modern operating systems will enable high-quality, real-time, ‘intelligent’ interactions between customers, advisers and the insurer, to allow customers to move seamlessly between different channels such as online and advised,” Mr Loader said.
“Robo-advice tools are beginning to fill this gap, allowing customers to consider their life insurance needs before reaching out for further support from specialists.”
Mr Loader said in the whitepaper, titled Life insurance megatrends: 10 trends reshaping the industry, that consumers expect an elegant online and mobile service offering in almost every aspect of their lives.
Consumers expect similar accessibility, simplicity and responsiveness from their life insurance provider.
“Online interaction must be ‘intelligent’, and this is facilitated by having consolidated, accessible data and workflow tools available through modern systems,” Mr Loader said.
“Providers that fail to adapt to the rapid pace of change in the digital economy will run the very real risk of disruption from more agile players.”
Mr Loader noted this shift has been largely driven by the rise of the Millennial generation.
“While Baby Boomer customers value prompt and courteous service delivered in person, Millennials expect the digital equivalent,” he said.
“Tech-savvy and educated, this new generation demands doing things their way.”