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{"id":9909,"date":"2020-09-07T23:25:29","date_gmt":"2020-09-07T23:25:29","guid":{"rendered":"https:\/\/sviaccelerator.com\/?p=9909"},"modified":"2020-09-07T23:25:29","modified_gmt":"2020-09-07T23:25:29","slug":"life-insurers-can-provide-better-insurance-to-next-gen-customers","status":"publish","type":"post","link":"https:\/\/sviaccelerator.com\/life-insurers-can-provide-better-insurance-to-next-gen-customers\/","title":{"rendered":"Life Insurers Can Provide Better Insurance To Next Gen Customers"},"content":{"rendered":"
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Life insurance margins continue to be squeezed due to the plunging interest rates, as well as the precipitous drop in the stock market and global economic crises. The much-awaited rise in interest rates has not materialized, and recent events such as COVID 19 and high unemployment rates make it clear that they will continue to plunge. As a result, it is crucial for life insurance providers to find new ways to maximize revenue opportunities. Those opportunities abound.
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Opportunities<\/strong>
\nRevenue growth opportunities include locating current policyholders who possess the potential for substantial upsell, and Next-Gen customers that are looking for personalization, all are likely to purchase better life insurance, and to become a Very Important Policy (VIPs). A tailored approach for these VIP customers will be exponentially valuable in the current turmoil.<\/p>\n

While insurance companies are aware of who their current important policyholders are, how can they better understand the identify the policies that have the potential, and once identified, how can the optimize methods for best engaging and converting them?<\/p>\n

The answer lies in optimizing the data they already have to generate insights on the life cycle of their policyholders. Understanding and predicting policyholder behaviors and alerting the agent at the right time to a potential change or discrepancy in the customer\u2019s profile could be a saving grace for life insurance providers in times of economic uncertainty.<\/p>\n

Looking Inward for New Revenue
\n<\/strong>Now, more than ever, insurance companies must pay more attention to the untapped potential in their book of business. Interest rates have dropped<\/a> significantly, drastically affecting the assets and liabilities of providers, and as lower interest rates make the insurance company’s products less attractive<\/a>, sales continue to drop, further reducing the revenue available for investments.<\/p>\n

While insurance companies may choose to address problems in the market by looking for new opportunities for growth to ensure efficiency and profitability, they should be focusing on optimizing what they already have \u2013 starting with their book of business.<\/p>\n

Finding Gold in a Mine of Data
\n<\/strong>How can carriers find untapped segments? They already have the answer at their fingertips within the vast stores of data they already have that can assist them in clearly identifying the opportunities for upsell.<\/p>\n

New technologies can transform the data into actionable insights and predictions data, enabling providers to empower their agents to address the unmet areas and optimize their books of business:<\/p>\n

Why is it still so hard to identify the most important users? Many agents are still largely relying on subjective memory and personal experience rather than basing actions on statistics and data.<\/p>\n

By having amassed massive quantities of data, life insurance providers have the ultimate big picture of their customers. Consumers and providers, however, lose out when carriers don\u2019t zoom in on segments and nano-segments and therefore fail to identify opportunities for upsell. Even when potential upsell is identified, if agents are not informed with actionable insights, none of it matters.<\/p>\n

Insurances carriers know a lot about every policyholder, based on the data they hold. Utilizing predictive analytics to dig into the data and identify the opportunities for upsell \u2013 AKA the underinsured policyholders can create a win-win-win situation for policyholders, agents, and carriers alike. The segments that can be revealed include those that answer to the following questions, among others:<\/p>\n