Life in the Fast Lane
Copyright: | (c) 2011 A.M. Best Company |
Source: | Proquest LLC |
Wordcount: | 1711 |
Life insurers use new tech tools to find customers and to leverage their existing client base.
The tool's actual name is
"It's on 100% of the time, and it does the job if you get it into the right place," said Britton, the chief executive officer of
Insurers, distributors and consultants are increasingly looking for ways to use websites and the many other tech tools available - smartphones, tablet computers, laptops, email, social media, texting and tweeting, for example - and consultants say that optimizing those resources requires some planning and coordination between insurers and distributors.
Britton seems sold on the value of
Britton said
"The problem is, we found that simply putting it onto a website doesn't work," he said. "You have to find a way to drive traffic to it. So, along with our producers, we've been finding new ways to do that." One is placing a banner ad within a website that directs a visitor to it. Another is buying a list of email addresses and then "blasting" a message to everyone on the list, he said.
One distributor apparently has found a proven way.
"We have one ace in our strategic distribution channel that's been keeping his technique quiet because he doesn't want anybody to copy it," said Britton. "He's got a young agent working it who's writing about eight policies a week with an average premium of about
Leveraging to Cross-Sell
In February,
Using information about the member, the system generates a simplified-issue life insurance offer and notifies the member online. The online offer requires the member to answer about 15 health questions, but does not require medical testing, said
"In a matter of minutes, the member can have up to
USAA's member service representatives were scheduled to help fill applications on the phone beginning
The company has also created a sweepstakes drawing to encourage policyholders to use social media to refer friends and family to USAA Life. "We have the best lapse rate in the business, so we're asking members to leverage technology to engage that word-of-mouth capability and get friends and family familiar with USAA life insurance," Blake said.
The sweepstakes will offer a cruise for up to 20 family members. Referring members and respondents who start the life insurance quoting process will be entered into the contest.
One consulting firm that promotes cross-selling and up-selling is GMC Software Technology, based in
Its customer communications management technology enables an insurer to incorporate targeted marketing messages on transactional documents like bills and account statements.
"Transactional documents get more eye- and brain-time than any other document," said
"One study showed a bill or a statement gets a minimum of two to three minutes of study on average, and 80% retain the documents, so there is a repeat exposure."
A well-targeted message leads to enhanced participation, but a poorly targeted message produces a negative effect, he said.
The communication channel doesn't matter, so long as it is the channel the client prefers. Cox said print mail is still the dominant channel, but digital technologies offer opportunities for an immediate response.
While email is commonly used, Cox said text messaging, mobile applications and social media are less about delivering transactional data and more about alerts and nontransactional target messaging.
Finding Clients Holistically
Finding new customers is a greater challenge than cross-selling or up-selling.
It says in a white paper that five new "disruptive technologies" (see box, above) enable insurers "to transform distribution and significantly grow sales."
Along with
Social media is an online place where people tell their stories. "We call them NARBS, short for narrative bits," said Kraft. Insurers can take advantage of this information by setting up what Kraft described as listening posts.
"People are telling you this information all day," said Kraft. "In the past, insurers relied on agents to ferret out this information. A high-performing carrier will need to determine which life events they want to plug into, how best to listen in, and connect to the ones that matter for their market strategies."
Agents can use social media to set up a presence, much like a storefront in a community, he said. He calls that the "crawl stage" of using social media.
In the "walk" stage, agents ask their customers to recommend them to friends. "This allows an agent to build a community much faster than he did in the past," he said. "And new agents will expect a carrier to have these technologies in place for them to build a referral book."
In the "run" stage, the network is working for the agent.
"You, the agent, are sitting in the middle," Kraft said. "The network runs for me and is managing my book. It's viral. It's developing new sources of business for me."
Gathering with Games
Digital marketing and gaming, another new technology, encourages prospects to use online tools or games to test their ability to make financial-planning decisions. Information they enter can tell an insurer a lot about their goals and problems and can shorten the sales process.
"Companies and agents have already gotten the benefit of knowing the context of what that person has searched for, and they can immediately focus on their needs," Kraft said.
"The old Game of life matches very well to the same lessons we regularly try to impress upon our clients: the importance of saving, of having protection in place," said
"So we thought it was a good fit, and everything we knew about
Pfaff said the game is not an integral part of the company's selling process, "but another tool we make available to help agents enhance their relationship with clients."
The game was initially available for a limited time through the New York Life website, and today agents can offer it directly to customers and prospects during sales calls.
New York Life's individual life insurance sales were up 38% in 2010, well above the industry's 4% increase.
Key Points
* The Trend: Advances in information technology offer new ways for life insurers to connect with prospects.
* The Significance: Experience in other industries shows that people shop for products online and make recommendations to friends.
* Watch For: Whether life insurers can find ways to reach prospective customers using new technologies.
CONNECTING WITH CUSTOMERS: Potential insurance buyers are using technology to post information about themselves online. It is up to insurers and producers to tap into it, say consultants.
Five 'Disruptive' Technologies
These technologies enable insurers to transform distribution and grow sales, according to
1 Mobile technologies and platforms
2 Analytical capabilities
3 Social media
4 Collaborative technologies
5 Digital marketing and gaming
USAA cross-sells life insurance whenever a member is approved for a mortgage or buys homeowners insurance for their primary residence.
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INVITATION TO A JOURNEY:
Agents can use social media to set up a presence, much like a storefront in a community
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