The financial industry might have been late to the digital transformation party, but they’re catching up quickly. From mobile payments to digital currencies, the industry is betting (and winning) billions on transformation efforts. Soon, adding digital life insurance to your product portfolio won’t just be a novelty, it will be a necessity. But with some smart investments and the right partner, your financial institution will be on the cutting edge of this emerging trend.
What It Is: A New Use for Established Tech
Digital life insurance combines technologies like machine learning and algorithm-based database scrubbing to assign risk factors based on a variety of automated factors, then offers consumers an underwritten product based on their risk factor. This ability to forego the traditional, lengthy medical assessment means a process that used to take weeks now takes minutes for the majority of consumers.
Because this process uses a model that has already proven successful in other insurance niches, financial institutions who embrace it get to forego the risk factors that usually come with new tech-based products while still harnessing the power of an emerging technology. That’s a big win-win.
There’s Opportunity in Early Adoption
As our lives grow more and more digital, we expect to interact with brands online. That makes the potential consumer reach of digital insurance huge, as it reaches individuals who may not ever set foot in brick and mortar institutions. This combination of meeting consumers where they are and giving them a quicker route to conversion allows early digital insurance adopters to profit, because interacting with consumers through their preferred channel drives higher conversion rates.
In one study, 50% of adults said they had searched for life insurance in the past year, with a third attempting to make purchases online.
An Immediate Route to Consumer Loyalty
When a consumer purchases more products from you, their loyalty can go up. That’s why providing a variety of insurance products is a keystone of a blueprint for smarter marketing.
Digital insurance is the perfect component of a smarter marketing platform for two reasons. First, it’s immediate. With Franklin Madison’s solution, customers can have an offer for an underwritten policy in less than 10 minutes. Second, life insurance is a product with inherent stability. Individuals who buy life insurance aren’t likely to jump ship anytime soon. And that consumer stability drives long-term loyalty.
A Better User Experience
Digital insurance isn’t just a win for financial institutions. It’s also a huge win for the consumers, who are able to avoid a highly personal medical history conversation followed by an in-person exam. That would then traditionally be followed by several weeks of waiting for coverage to go into effect. Conversely, for most potential customers who use Franklin Madison’s solution, the process is completed entirely online and results in prices that are comparative, if not cheaper, than traditional competitors. What used to take anywhere from 5-15 weeks can now be accomplished in 10 minutes.
If you haven’t added digital insurance to your product portfolio yet, now’s the time as consumers are adopting it faster than ever. And if digital insurance is in your company’s future, we can help. It comes with marketing support from the proven leader in building consumer security through insurance products.
To learn more about digital life insurance, download our eBook, Transformation Next: Digital Life Insurance, on the power of the next digital disruptor.