The move to remote working and operation driven by the impact of COVID-19 has led to a fundamental shift in consumer demands for life insurance products.
US insurance group Lincoln Financial has revealed the results of a survey which found a growing number of clients want to buy their insurance and protection products online.
Over a third of consumers questioned believe life insurance is more important and a similar number say they have or are planning to purchase life insurance according to the study.
It also found that digital options increase the likelihood to purchase life insurance — especially among younger consumers. While 29% of all consumers surveyed would be more likely to buy life insurance if they could do so completely electronically, that number jumped to 40% among millennials.
Lincoln said the results support its decision to move toward a completely electronic process and is now offering the option of a secure online interview tool that allows customers to answer health questions more conveniently and resulting in faster application turnaround times.
“Digital capabilities are more important than ever as we work to meet the evolving needs of our customers and provide experiences consistent with what consumers are used to from other industries,” said Heather Milligan, Senior Vice President, Underwriting & New Business, Lincoln Financial Group. “The global pandemic has increased awareness around the need for life insurance and now we have to make sure the process is streamlined and convenient. Our online interview tool is the next step in our digital evolution.”
“The COVID-19 pandemic has clearly highlighted the importance for life insurance carriers to digitally transform manual processes and partially digitized ones,” said Robert McIsaac, Executive Vice President, Research and Consulting, Novarica, Inc. “Another reality is that the pandemic has accelerated the adoption of digital capabilities which were already well along in other aspects of financial services. Moving aggressively to address these matters allows carriers to improve the customer experience, make it easier to do business and create competitive advantages in key areas – advantages that we expect to be critical in an increasingly competitive future.”