Skip to main content Skip to Footer

LATEST THINKING


Connected Wellness: Livening-up Life Insurance

OVERVIEW

Most people rarely engage with life insurers after purchasing a policy, aside from making billing inquiries or updating contact information. With customer interactions so infrequent, insurers cannot be customer-centric, especially by the standards of today’s always-on digital landscape.

They face a compensation value proposition dilemma. Carriers cannot afford to pay out more claims to increase customer interactions. But without more interactions, higher cross-sell rates, product and relationship stickiness—even relevancy itself—are at risk. So is growth. With connected wellness, insurers can improve frequency and quality of customer interactions to cultivate more meaningful customer relationships that touch people’s daily lives.

READ THE REPORT [PDF]
Connected wellness is a natural fit 65 percent of millennials globally would consider a connected life insurance product.

WHAT IS CONNECTED WELLNESS?

Four components of connected wellness change the value proposition to include risk prevention:
What is connected wellness?

KEY FINDINGS

The fundamentals of connected wellness offer new advantages to life insurers and consumers.
  • Different relationships. In addition to more intense customer interactions, carriers can create value by influencing risk throughout the policy term, improving insured population risk profile through self-selection, gaining more insight into customer behavior and developing ecosystem partnerships.

  • New markets. Connected wellness can help life insurers approach new markets, interacting with underserved customers more often, improving underwriting results and increasing share of wallet—and share of mind. Our analysis suggests that millennials and seniors are top targets for connected wellness.

  • Ecosystem power. Carriers do not have to—and should not—attempt to choose one winner. Nor should they go it alone and attempt to build from the ground up. Instead, insurers need to develop an open business architecture that creates a backbone for orchestrating or participating in a connected wellness ecosystem.

44 percent of consumers are likely to consider connected insurance services to help them become and stay healthier.
78 percent of consumers are interested in insurers helping them or aging relatives live safely in their homes.

RECOMMENDATIONS

The move to connected wellness goes beyond putting devices into customers’ hands. Carriers must:

Crystallize the connected wellness value proposition.

Crystallize the connected wellness value proposition.

Leverage data to create more consumer interaction points and provide better risk selection among applicants.

Lay the groundwork to innovate for top targets.

Lay the groundwork to innovate for top targets.

Ensure the business has a flexible operating model, digital acumen and sufficient depth and key skills to innovate and scale.

Manage, monitor and monetize the data flow.

Manage, monitor and monetize the data flow.

Leverage data to create more consumer interaction points and provide better risk selection among applicants.

Adapt to outcome-based rewards sharing across ecosystem partners.

Adapt to outcome-based rewards sharing across ecosystem partners.

Consider apportioning a part of acquisition costs saved through partnerships to offset costs for ecosystem partners.

AUTHORS

CONTRIBUTORS

Andrew Greenberg        Connect with Andrew Greenberg's Profile on LinkedIn. This opens a new window.
Nicholas Melvin        Connect with Nicholas Melvin's Profile on LinkedIn. This opens a new window.
Priyanka Wadhwa        Connect with Priyanka Wadhwa's Profile on LinkedIn. This opens a new window.




SUGGESTED CONTENT