Life Insurers Miss the Mark on Clarity of Information and Personalization—Particularly Among Younger Customers, J.D. Power Finds
State Farm Ranks Highest in Individual Life Insurance Satisfaction
The life insurance industry is at an inflection point. Experiencing persistently slow growth and facing generational shift that is increasingly reliant on converting Millennial1 and Gen Z customers, the industry is working hard to improve customer communications and build trust with new customer segments. According to the
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20241010964448/en/
“Life insurers are facing new communication challenges as they court younger consumers,” said
Following are some key findings of the 2024 studies:
- Complexity keeps many customers from fully understanding their policies: Just 29% of life insurance customers say they “strongly agree” their insurer makes complex policies simpler and just 61% say their agent or advisor explains things in terms they can understand. Among members of Gen Z, that number falls to 57%. Overall, 64% of life insurance customers say they fully understand their policies.
- Rethinking the life insurance statement: When asked what insurers could do to make life insurance statements easier to understand, most customers say: “reduce complexity/make statements easier to read.” Among younger customers in the Gen Z and Millennial segments, customers are looking for a guide or diagram on how to read the statement or links to educational videos and materials that explain how to read it.
- Disconnect between current policy and future needs: Fewer than three-fourths (72%) of life insurance customers say their policy completely meets their future needs. Insurers can increase this rate dramatically by tailoring communications to specific customer needs, delivering the right frequency of communication and ensuring that the policy is completely understood.
Study Rankings
The
For more information about the
See the online press release at http://www.jdpower.com/pr-id/2024120.
About
About
_______________
1
View source version on businesswire.com: https://www.businesswire.com/news/home/20241010964448/en/
Media Relations Contacts
Source:
Wife gets life without parole for murder of sleeping husband
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News