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How the life insurance industry is changing

Apr 09 2018 15:23

Source: Supplied

The insurance industry has never been easy to deal with, and no one really enjoys having to buy insurance – not only does it mean we usually have to face a “worst case scenario” situation and face our own fallibility. Both taking out an insurance policy and claiming one often means a long, tedious process, equaling to a ton of paperwork. But innovations in technology and within the industry itself is helping to change the negative reputation of taking out insurance.

From the complex system that is required in order to buy insurance products to the struggle if you cannot afford a monthly premium, insurance sometimes feels like that like that annoying family member that we have to see every major holiday – a legitimate part of our lives, needed but very tedious.

Like many industries, insurance is benefiting from the technological boom and the ‘consumer first’ type attitude. Insurances such as IndieFin are changing the industry as we know it, by making it easier for clients to buy their products and also to manage – if a consumer wants to skip a payment or change their plan, it is simple.

A problem consumers face is the additional costs of the financial advisors that is added premiums, digital-first insurance companies offer clients financial advice from financial advisors online, on chat, with no additional cost. In this way, they are cutting out the middle man and therefore cutting the cost of the insurance premiums.

Cover seems to not be enough for insurers to make sure that clients stick around, henceforth why many insurers have created products that redefine the value of insurance. A good example of this is Indie’s Bounty, which is a rewarding investment that clients receives whilst they are insured. Indie matches up to 100% of the monthly premium in an investment with no extra cost to the consumer. Therefore, the insurance will be generating future wealth for the consumer. Insurances can no longer just focus on making a profit, they have to offer products that are quality and reward consumers in more ways than just cover. 

Being able to sign up for insurance packages online, is a big draw which makes digital-first insurers more popular with millennials. It streamlines the process and makes the underwriting process go faster. Allowing prospective customers to have access to the industry’s website, to the chat, to social media and emails 24/7 keeps the company’s availability open so that the client can research and sign up in their own time.

Understanding the changes in the insurance industry, also means understanding millennials who will comprise most of the active workforce. It means taking into account the fact that millennials tend to get married later than previous generations, have less children, and are reluctant to become homeowners or to purchase other luxury goods. Millennials also put a lot of emphasis on their health and fitness in comparison to other generations.

Knowing what we know about millennials, it is almost impossible to serve them the same insurance packages in the same way that it was given to their parents and grandparents. Insurance, like all other industries needs to evolve to suit the consumer, which is what IndieFin has done.

As SA's first fully underwritten digital insurer, Indie has changed the Life insurance game. By designing products from the ground up for an internet generation, they've cut out the tedious admin and complex jargon, making everything more convenient for the consumer. Indie offers a customized plan with a range of products from death income protection, funeral cover, disability cover, critical illness cover and life insurance. And every policy comes with a wealth creating Investment at no extra cost. Find out more here.

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