Life insurance 2.0: Innovations and digital strategies fuel growth

Like every industry, life insurance is rapidly transforming to meet the digital era. Technology has reshaped customer expectations, and every generation from Gen-Z to baby boomers is looking for an innovative experience that feels personal — and personalized. According to CoinLaw, "Seventy-six percent of U.S. insurance executives have implemented generative AI capabilities in one or more business functions, with 82% adoption in life and annuity insurers." Life insurance providers can keep pace with the competition and fuel growth by embracing digital innovations that can create simpler, faster, more customized experiences for customers.

Personalization is key

Automation and AI are offering more ways to tailor the shopping and management experience, but balancing digital interaction with human support is critical. While customers are looking for a smooth, intuitive experience, they also want to feel understood and valued. Deloitte notes that, "One in five consumers who expressed an interest in personalized products or services are willing to pay 20% more. Offering personalized customer experiences allows businesses to demonstrate the value consumers get from their personal data being used." Understanding customer needs through demographic and behavioral research in addition to detailed segmentation can help insurance providers understand what each audience is looking for and deliver a more personalized experience at each touchpoint.

Personalization also allows providers to proactively engage with customers. Anticipating customer needs and providing real-time solutions drives satisfaction. Whether an interaction is digital or human, each should feel meaningful, intentional, and respectful of a customer's time and needs. This can make customers feel seen and help grow engagement with insurance providers' brands and services.

Modernize with minimal friction

Start by rethinking and remapping the customer journey from initial awareness to long-term engagement. It's imperative to understand customer behaviors and how different segments want to engage. This can be achieved through intelligent content management systems that uniquely target and dynamically adjust messaging based on customer segments. Using automation and AI combined with unique personal communication can reach your customers on a customized level without requiring a vast amount of work to scale. Consider how you can make your outreach:

1. Relevant and personal

Understand what customers care about. Insurance Innovation Reporter notes that, "Insurers already have data to drive meaningful personalization; policy details, claims history, communication preferences and life stage indicators are all stored in your systems. The challenge is leveraging this information at scale without drowning in complexity." With these details available, insurers can find ways to congratulate customers for reaching milestones or offer sympathy in times of trial — and meaningful suggestions for products or tools that can support them.

1. Easy to understand

Most people don't "speak" insurance, so minimize jargon. Generative AI is one way to quickly simplify digital messaging and make it clear, concise, and easily digestible.

1. Customized and optimized to the customer's preferred channel

Recognize that not every audience will want digital communications and continue to leverage print, direct mail, and email in outreach to customers that prefer it. Equally important is making sure that each channel is optimized to its native capabilities. And with digital, speed matters. "To support these dynamic experiences, insurers need systems that support content delivery via high-speed APIs, enabling content to be retrieved, assembled and displayed in sub-second response times."

Think beyond Gen Z

The desire for richer digital experiences spans generations. Baby boomers, Gen Xers and millennials all seek improved digital engagement with their favorite brands. Boomers, especially, are a growing digital audience, showing a significant surge in adoption of digital platforms during the pandemic. They've become increasingly comfortable using technology for everything from ordering food to social engagement to shopping. But the key to meaningful engagement is not in replacing human interaction, but using tech adoption to improve the entire experience, meeting audiences where they are and giving them the flexibility to engage the way they want. That means offering choice and convenience and making offerings accessible across all channels and generations.

Build trust through data privacy and protection

As digital communications evolve, data privacy and protection are more important than ever. Users are becoming progressively interested in how their data is used, and they expect transparency and security. Protecting customers' data involves investing in secure systems, effective policies, and ethical practices. Deloitte reported that 81% of consumers now say trust in a brand's data practices directly influences their buying decisions. When customers trust that their information is handled responsibly, they are more likely to develop long-term relationships with an organization. Data privacy is not just a compliance requirement, but also a strategic imperative to safeguard customers and build trust — and brand loyalty.

Insurance providers can benefit from leading the charge and embracing digital opportunities in the industry. But it's important to remember that while new technology has changed customer expectations, human interaction will continue to be at the heart of relationship building. Providers can transform the customer experience by balancing digital innovation and thoughtful, individualized communication that shows them they're valued.