The evolution of life insurance

Jul 09, 2012

Over time, life insurance has evolved into a versatile financial product.

As consumers prepare for retirement, they start setting aside money into savings accounts, 401(k) plans, annuities and other financial products. These consumers should also look into life insurance as a means to distribute their assets when they pass away, as well as create another financial safety net to help support their families should they pass away.

A myth many consumers believe is that life insurance is not important at all stages of life. While many young professionals may not realize the value of life insurance when they do not have any dependents relying on them for financial security, however early on is the best time to apply for term life insurance. The younger and healthier an applicant is, the more likely they are to find lower life insurance rate quotes.

Many life insurance providers are increasing the role of technology in their business models so as to reach out to younger consumers to create awareness of the alternative uses of life insurance.

In an interview with LOMA, a panel of five life insurance chief information officers agreed that technology is having a greater impact on the business strategy of life insurance providers, and agents and brokers are looking for more insight into technology trends, initiatives and challenges based on consumer behavior and overall economic confidence in the country. Technology can help break down communication barriers between providers and consumers as they work to drive sales and awareness of life insurance benefits.

The CIOs said mobile applications, social media, cloud computing and other emerging technologies are helping insurance providers reach new customers.

"What we see in the macro environment must be continually considered and assessed," said Greg Driscoll, CIO. "Market penetration of mobile devices and the ability for connectivity everywhere is fueling a growing expectation across all our stakeholders."

 

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