Insurers Need To Get More ‘Hands On’ After The Sale: Pacific Life Exec

Pacific Life executive Nathan Jones has never seen his office.

Hired about one year ago as assistant vice president for advanced analytics, Jones started just as the COVID-19 lockdown was beginning.

"So I've never seen the office," Jones said. "Last I heard they were tearing down the interior of the building for kind of a reimagined post-COVID space."

Jones seamlessly immersed himself in the Pacific Life culture by relying on technology and other innovations. It's those "touchless" innovations that customers love and are expecting insurers to continue in the post-pandemic world.

Jones discussed those expectations and more as part of the panel discussion, "New Technologies Accelerate Insurer Innovation and Regulatory Modernization" on Tuesday afternoon at the virtual Life Insurance Conference from LIMRA, LOMA and LL Global.

"We're having to rapidly evolve to a new normal that's still not really well defined," Jones said. "We've shown that we can operate in a hands-off kind of post-COVID way. But there are real challenges to be sure. And I think it's forced a pace of innovation that maybe hasn't been seen industry for a while."

Hands On, Hands Off

Traditionally, life insurers have been "hands on presale and hands off post sale," Jones said. "That may be flip-flopping."

"I think there's real, ethical and business reasons to kind of change that," he added. "And I think the world is expecting it. Now."

A 2020 pwc survey revealed that life insurance customers expect digital service -- and they are not satisfied with what they see.

As customers looked for alternate ways to update accounts, renew policies or resolve issues, online options came up short, the survey found. Of those who expressed difficulties in dealing with their carriers during the crisis, 41% said they would be likely to switch providers due to a lack of digital capabilities.

When traditional channels shut down because of the pandemic, 19% of customers said they anticipated more interaction with their insurer through video chats with agents or chats via a website, the pwc survey found. They also planned to make more use of email and, especially for younger users, mobile apps.

Young consumers were most vocal about expecting digital options. Among the 18- to 24-year-olds surveyed, 53% said they were likely to use digital channels to engage with their insurers within the next 90 days.

A Partner For Life

Another conference session focused on what life insurers can do to partner with customers on life goals. John Hancock includes with each life insurance policy access to the Vitality program, a technology-based wellness program that rewards healthy habits. Vitality focuses on three pillars of good health — nutrition, physical fitness, and mental well-being.

There are opportunities across the spectrum to reinvent the insurer-customer relationship this way, Jones said.

"If you look at what the banking experience was 20 years ago, compared with today, banks are much more positioning themselves as partners in what a person is trying to achieve with their lives," he said. "I think with insurance, the exact same thing applies. I'm really excited about the next year and the coming five to 10 years."

Additional surveys show that young people are definitely waiting and willing to have the discussions about life insurance and overall financial planning.

"We are seeing a lot of resonance with products and services that you either directly partner with the insured and it helps you understand their needs, and then tailor it to where they're trying to go," Jones said of Pacific Life's experiences.

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.

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