How well being and wealth breathe new life into life insurance coverage

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Shoppers are sporting their hearts on their sleeves, their wrists and a bunch of different physique elements, because of present and nascent wearable applied sciences. At an estimated $84 billion by 20221, wearables, mixed with AI and its means to glean insights from an abundance of disparate information, current a possibility for all times and annuity carriers to deal with frequent strategic enterprise areas: progress and buyer focus.2 

The chance to deal with these strategic imperatives lies within the service’s means to stay related to policyholders by growing the variety of touchpoints all through the moments that matter in a policyholder’s life. Accenture calls this “dwelling companies.” If insurers are to maintain tempo with evolving client expectations, these companies have to be frictionless, hyper-personalized and satisfying. Residing companies and the well being wealth convergence present life insurers a possibility to create new income streams from services past insurance coverage.  

Change into an “on a regular basis insurer” to win new prospects

Because the strains between life, well being and wealth safety blur, insurers should join additional upstream with customers and all through the coverage lifecycle by way of alliances and partnerships with complementary safety and prevention companies. The chart beneath identifies key touchpoints in a client’s life that, with related partnerships, can deliver new alternatives for insurers and their companions.  

Take wellness, for instance. The insurance coverage business can entry many extra sources of third-party wellness information—some in actual time—together with wellness scores and threat engines that allow underwriters to present even extra correct pricing for larger variety of discrete segments. Expertise exists immediately that makes it potential to leverage wellness information to supply incentives for shoppers to enhance their general well being and monetary wellbeing. In keeping with Gartner Inc., the business will transfer more and more towards proactive well being monitoring over the subsequent two to 5 years, after which it’ll set its sights on interactive life / well being administration. To get there, the analysis home claims, insurers might want to shift not solely their enterprise focus but additionally their digital and know-how focus.three 

What’s required to achieve the brand new world of linked well being and wealth is a digital insurance coverage technique that leverages Web of Issues (IoT) platforms and a mixture of applied sciences starting from hyper-personalization and clever enterprise to clever automation and predictive disruption. These applied sciences, built-in with a digital insurance coverage platform, allow extra complicated interactions at scale than merely promoting insurance coverage alongside different services. This consumer-centric technique shifts the chance from promoting merchandise to delivering outcomes akin to higher well being and wealth protection by decreasing threat to each.  

Take into account the John Hancock Vitality®  program that rewards policyholders for wholesome dwelling and consists of using health trackers to confirm wholesome conduct. Policyholders on the Vitality program interact with John Hancock almost 600 occasions per 12 months. John Hancock claims Vitality prospects generate 30 p.c decrease hospitalization prices than the remainder of the insured inhabitants. This system has additionally proven its means to considerably scale back prospects’ morbidity and mortality charges. The intense engagement, along with a gradual circulate of rewards, builds buyer loyalty and satisfaction. The wealth of information that Vitality offers additionally permits the insurer to evaluate dangers and value insurance coverage with extra precision than carriers utilizing coarser combination information, subsequently doubtlessly turning into extra aggressive and worthwhile. John Hancock has now built-in Vitality into all of its life insurance coverage insurance policies. (Supply: AccentureTechnology Imaginative and prescient for Insurance coverage 2019)  

Insurers should shift to a collaborative digital enterprise mannequin and join with shoppers the place they’re digitally current and engaged, akin to with a health tracker, telehealth platform or procuring on an ecommerce platform. By means of APIs, insurers join the digital insurance coverage platform to information from the health or ecommerce platform, and vice versa.They then apply AI to construct digital personas for particular particular persons at particular seconds in time, at which level they ship related recommendation. As these touchpoints improve over the policyholder’s life, insurers and producers alike deepen their relationship with the customer, which might result in worthwhile new enterprise. The truth is, ourAccenture 2017 World Distribution & Advertising and marketing Shopper Examine discovered that shoppers are asking for the sort of service—and they’re keen to pay extra for it. Within the examine, 46 p.c of shoppers not solely indicated that they might pay extra for customized, real-time companies, but additionally that they’re keen to share extra private information to get them.

In contrast to a standard product-driven economic system, collaborative digital platforms present buyer suggestions to insurers that may allow them to supply related merchandise at particular touchpoints all through a policyholder’s life.

Picture Supply: Accenture Analysis based mostly on Accenture paper “Evolve to Thrive in Rising Insurance coverage Ecosystem”; Accenture Monetary Companies’ World Distribution & Advertising and marketing Shopper Survey, 2017

We consider that insurers who join well being and wealth will achieve a major aggressive benefit. The know-how exists immediately to make the connection. Accenture helps carriers undertake a digital insurance coverage platform that seamlessly connects with a wide range of ecosystems to uncover worthwhile alternatives, unlock trapped worth and breathe new life into life insurance coverage. 

Find out how Accenture might help your insurance coverage enterprise innovate and develop.

 

References:

Gartner, Forecast: Wearable Digital Gadgets, Worldwide, 2018, Alan Antin, Ranjit Atwal, Tuong Nguyen, Oct. 24, 2018.
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Gartner,The Convergence of Life and Well being Insurance coverage Requires Interdependent Ecosystems, Richard Natale, Kimberly Harris-Ferrante, Bryan Cole, Could 22, 2018.

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