Life insurers are finding innovative, tech-forward solutions to meet customer needs in 2023. Look at this year’s top trends to see how you can gain market share this year as a forward-thinking carrier.
Life insurers are facing a litany of challenges this year, but none have hindered the pace of digital transformation in the industry. In fact, just the opposite is true — sector IT investments are due to reach $271 billion by 2025, up from $210 billion in 2021.
A volatile economy, the sharp rise of inflation, geopolitical disruption and the fall of disposable income have urged insurers to march into the new year with their sights set on progressive, tech-forward solutions. The top trends in 2023 revolve around speedier personalization, smarter automation and more efficient distribution. These trends that insurers should be prioritizing this year are as follows:
1. Advanced digital capabilities increase productivity, customer engagement: Insurers are developing predictive sales tools that empower agents with instant, data-driven customer insights to meet client needs. We expect more insurers to opt for digital tools that improve the customer experience and drive lifetime value for years to come. Insurers will offer agents more access to real-time customer data and tools to increase policyholder retention. Insurers will use sales and engagement activities data to improve distribution and agent sales performance, resulting in higher revenues across the board.
2. Ecosystem partnerships offer path to innovative value propositions: Artificial Intelligence and a seamless experience are key to future success in the insurance industry. Life insurers are teaming up with tech-driven counterparts to offer AI-enabled financial tools that help customers plan and prepare for the future. Ecosystem partnerships help insurers build long-term, trusting client relationships that both educate on and promote the relevancy of life insurance in a value-driven way.