The Opportunities Ahead
Strategy Thoughts for Today’s Life Insurance Company Leaders
By Dean Lambert, Executive Director, LIC
A Look Back
I have been associated with the insurance business for a little more than 30 years, twenty-five of which I spent with a mono-line mutual insurer founded as a fraternal in 1906. At the turn of the 20th century, our company leadership concerned itself with technological, financial, and regulatory issues at the same time we embarked on an entirely new go-to-market strategy. Seemed like a lot at the time!
Think about what kept insurance company leaders up at night back in the late 1990s. To name a few:
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Industry News
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Celent: Digital Focus Should Be on the Agent
In a recent blog, "Life Insurance - Humans vs. Computer," Celent's Tom Scales discusses why online life insurance sales lag behind P&C and where insurers should focus.
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Magnifact Launches New Multi-Persona Mobile App for the Insurance Industry
Magnifact, a Chicago-based provider of DataIntelligent℠ solutions for the insurance industry, unveiled its newly architected AgentVizion2GO mobile app. This advanced technology offers extended capabilities and access for all personas across the insurance industry.
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Life Insurance Awareness Month #LIAM
Three Misconceptions May Deter Americans from Getting the Life Insurance They Need
Despite consumers' broad consensus that having life insurance coverage is important, ownership has been declining over the past decade. Today, just over half of U.S. adults (52%) report having life insurance, down from 63% in 2011.
According to the 2023 Insurance Barometer Study, conducted jointly by LIMRA and Life Happens, more than 100 million Americans believe they don't have enough coverage.
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Young People Want Life Insurance, But Aren't Buying It
InsuranceNewsNet offers its take on LIMRA's 2023 Life Insurance Barometer Study in this article by John Hilton.
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Celebrating Customer Experience during Life Insurance Awareness Month
ManageMy talks about Customer Experience in its Life Insurance Awareness Month, examining "why customer experience is pivotal in the life insurance sector and how it contributes to building trust, fostering long-term relationships, and ensuring financial security for families."
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 LIC Preneed Forum, November 15-16, 2023 - www.loma.org/preneed
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Sureify Partners with FreeWill To Broaden Access to Estate Planning Products
Insurtech leader Sureify and estate planning platform FreeWill have announced a strategic partnership that will help more of America's top Insurers provide estate planning benefits to their clients and prospects. This partnership will enable FreeWill's estate planning solutions to be integrated with life insurance tools that together offer a seamless way for individuals and families alike to create their end-of-life plans.
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Jonathan Rhoda Promoted to Executive VP of Bruce & Bruce
Bruce & Bruce is announce the promotion of Jonathan Rhoda to Executive Vice President. Jonathan joined Bruce & Bruce in January 2021 and quickly became an influential member of the Bruce & Bruce team.
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The End is Just the Beginning: Potential for Growth in Final Expense Coverage
RGA's Brian Sibley and Nathan Hill wrote about opportunities in final expense citing LIC's most recent Final Expense Survey Report. They noted that final expense insurance "can be an affordable option and a powerful bridge across a yawning coverage gap."
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Equisoft Webcast Addresses People-Centric Digital Transformation
In an August 23, 2023 webcast, now available as a recording, Equisoft noted: "42% of customers don't fully trust their insurer. 60% of insurers feel their company lacks a CX strategy." In "People-centric Digital Transformation: Create Superior Agent & Consumer Experiences," panelists revealed strategies, processes, use cases and technologies that are bridging the CX gap.
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LIC Welcomes Epoq
Epoq, Inc., a frontrunner in digital legal document preparation services, is proud to announce its new membership in the LIC. By becoming a part of the LIC community, Epoq, Inc. will directly provide its innovative digital services to LIC members, thereby enhancing the policyholder experience with efficient and accessible legal document services. Follow on LinkedIn @Epoq-USA.
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How To Increase Policyholder Satisfaction, Renewals, LTV and Profitability
Digital Insurance is offering a web seminar on September 12, 2 pm ET, titled "Maximize Retention To Survive Change." Panelists from Amazon Pinpoint and Precisely will discuss market challenges and economic impact of renewals; ways to increase policyholder satisfaction, renewals, LTV and profitability; and a demo of Amazon Pinpoint and Personalized Interactive Video Experiences.
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Upcoming LIC Events
LIC Laws & Legislation Committee Conference Call
September 22, 2023, 2-3:30 pm ET
LIC Operations Committee Meeting
Hosted by Catholic Life, San Antonio, TX
September 26-27, 2023
LIC Technology Committee Meeting
Hosted by GPM Life, San Antonio, TX
September 27-28, 2023
LIC HR Committee Conference Call
October 12, 2023, 2-3:30 pm ET
LIC Investment & Capital Management Committee Meeting
Hosted by Catholic Order of Foresters, Naperville, IL
October 18-19, 2023
LIC Annuity Committee Conference Call
November 2, 2023, 2-3:30 pm ET
LIC Preneed Forum
Hosted by National Guardian Life, Madison, WI
November 15-16, 2023
LIC ERM Committee Conference Call
November 30, 2023, 2-3:30 pm ET
LIC Supplemental Products Committee Virtual Meeting
December 7, 2023, 2-3:30 pm ET
Mark Your Calendar!
LIC Annual Conference
The Westgate Hotel, San Diego
February 7-9, 2024 (CEO Forum is February 6-7)
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LIC 2023 Premier Sponsors
Many thanks to the following companies! As LIC Premier Sponsors, they support all LIC events throughout 2023.
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About The LIC Bullet
The Bullet is the official e-newsletter of the Life Insurers Council, which has been providing networking and practical business solutions for life insurers since 1910. As a council of LOMA, LIC serves the unique needs of small-to-midsize member companies, offering a personal network of peers with practical solutions to shared challenges. The Bullet delivers immediate and relevant industry news and editorial.
LIC E-News Online Community: As a networking organization, we welcome dialogue and input from our readers – therefore we are transitioning the Bullet to its new home in the LIC E-News online community at LICConnect. All Bullet subscribers have access to this forum, and others can request access by contacting lic@loma.org.
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Feature Article (Full Text)
The Opportunities Ahead
Strategy Thoughts for Today’s Life Insurance Company Leaders
By Dean Lambert, Executive Director, LIC
A Look Back
I have been associated with the insurance business for a little more than 30 years, twenty-five of which I spent with a mono-line mutual insurer founded as a fraternal in 1906. At the turn of the 20th century, our company leadership concerned itself with technological, financial, and regulatory issues at the same time we embarked on an entirely new go-to-market strategy. Seemed like a lot at the time!
Think about what kept insurance company leaders up at night back in the late 1990s. To name a few: Y2K, abundant regulatory activity (who can forget Gramm-Leach-Bliley), the burgeoning Internet and what ended up being the beginning of a sustained decline in investment rates. Did insurance company leaders 30 years ago wake up thinking, “We need to get going on a website”? Much less, “We need a way for consumers to easily purchase our products online.”
“Unprecedented” Challenges (and Opportunities)
We’re nearly a quarter of the way through the new century. Could anyone back in the 90s have predicted today’s challenges? Do the challenges they faced even compare to what we’re contemplating today?
Artificial intelligence. Workforce concerns include recruiting, retention, and hybrid/remote employees. Diversity and inclusion. Industry consolidation. Cybersecurity. The customer experience (offline and online). Oh, yeah: COVID.
There are others that indirectly but solidly impact success. How much did we think about employee mental health before 2000, or even 2005? How confused and frustrated are consumers about their futures, and what’s the impact on insurance purchasing decisions?
Many of the issues with which we wrestle are the very same issues of concern to consumers. We all seek security and prosperity, just from different perspectives. Many insurers and fraternals are focused on strategies that adapt current models to digital strategies. This is not a “whole” strategy. As current policy owners and members age or max out the sensible need for coverage, we must reach new policy owners. But who? How?
Consumer Insights are Paramount
As far back as 2015, a study by Deloitte revealed the middle market is viable, interested and underserved. They found that most insurers were not using up-to-date products, sales, and marketing to effectively reach these consumers. They talked about the importance of being a “first mover” in terms of approaching this market, and they urged companies to be data-driven in their approach.
What has changed in the past eight years? Unfortunately, according to the latest research, not much. Deloitte avowed, “The life insurance ‘winners’ of tomorrow will likely be those that blend an advice-driven approach with a digitally enhanced engagement strategy to meet evolving customer expectations.”
How Are We Doing in 2023?
According to the 2023 Insurance Barometer Study conducted jointly by LIMRA and Life Happens, more than one hundred million Americans believe they don’t have enough insurance coverage. Nearly 40% of respondents say they intend to purchase life insurance this year. Traditionally underserved markets including younger people, women, and Black and Hispanic Americans all feel they do not have enough life insurance.
In other words, despite all the information to which consumers have access and all the websites that help potential policy owners get started down the sales funnel, annualized premium remains flat to slightly growing. The saving grace for some companies is an increase in policies issued, but not nearly as much as one would expect with such a large underserved market.
What is your organization prepared to do to educate, inform and serve people who need and want the protection and financial security offered by life insurance? How will you leverage your nimbleness to gain and act on consumer insights? Picture yourself looking back from the year 2030: What will be your success story?
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