Capgemini’s “Life Insurance Top Trends 2023” report highlights the importance of digital evolution in the life insurance industry. By putting customers first and addressing pain points, insurers can see significant positive impacts on their business and retain customers.

The report stated that the first step in enhancing customer experience is empowering agents and customers with advanced digital capabilities. “The agent-customer relationship has already evolved to be digital. Widespread technology adoption by customers of all ages has raised the bar for policyholder expectations and demand for a seamless experience. ” it said.

If it’s overly complicated to access and update one’s policy, data goes unchecked and the experience worsens for both the carrier and the beneficiary when it’s time to access the policy.

Life insurers must pay attention to millennials

Capgemini’s analysts also noted that the opportunity to earn Millennial business, as over half (55%) of Millennials do not have or need more life insurance coverage, was also a priority.

The report went on to detail ways to transform the claims process, saying that insurers can focus on three pillars

• Improved customer experience through automation – this involves empowering agents and customers with advanced digital capabilities to meet policyholder expectations and demand for a seamless experience.
• Beneficiary engagement – insurers can provide options for beneficiaries to opt into one-on-one engagement with the carrier to validate information and update it when changes occur. Third-party monitoring can also be deployed for data maintenance.
• Asset retention – as we head into a high-payout period where asset retention is key, the relationships built with beneficiaries can be a way to close the insurance ownership and retirement gap. Carriers can guide beneficiaries through the claims process and offer phased payout options to retain customers.

Speaking about the new report, Samantha Chow, VP and Global LA&H Sector Leader at Capgemini, said: “According to Capgemini’s research, improved customer experience through automation empowers agents and customers with advanced digital tools. This helps form authentic relationships with beneficiaries as early as possible and guides the next generations of policyholders through upcoming asset transitions.”

She added: “By embracing the three pillars (automation, beneficiary engagement and asset retention) insurance companies can drive greater efficiency, reduce costs, and ultimately improve their bottom line.”