Google and Amazon are often viewed as threats to the insurance industry, but some insurers are embracing the digital assistants technology giants currently offer as a tool to help increase uptake of life insurance.
Products in the life insurance markets have long been described as sold and not bought – a reference to the reliance consumers have on the advisory channel when arranging a life insurance policy. However, recent trends indicate that consumers are becoming increasingly confident in purchasing without specialist advice.
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GlobalData’s 2018 UK Consumer Insurance Survey revealed that 14% of non-mortgage-related term assurance customers spoke to a friend for advice before purchasing. Insurers need to ensure the information consumers are seeking is readily available outside of the traditional areas.
One provider utilising the latest technology in order to answer potential customers’ questions is Australian company Real Life Insurance. Individuals can ask their Google device questions such as “Why do I need life insurance if I’m young and healthy?” If individuals want to receive a quote and purchase life insurance they then contact Real Life Insurance through more traditional methods.
Ladder is another provider that has recognised the potential of these devices in terms of customer engagement. It has developed a skill for both Google and Amazon devices allowing potential customers to ask questions about life insurance and receive a basic quote.
Despite digital assistants providing insurers with a new method to interact with and educate customers, the devices could also pose a risk to incumbent insurers. There has long been speculation that both Google and Amazon are interested in entering the insurance industry. With incumbents utilising devices from these companies, consumers may see their entrance to insurance as a natural progression and be less hesitant to purchase policies directly from either Google or Amazon.
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By GlobalDataBut findings from GlobalData’s survey indicate that only 7% of consumers would consider purchasing life insurance from either Google or Amazon. As a result, the current risk these devices pose to insurers is relatively low – particularly compared to the benefits they can bring in terms of boosting customer engagement.
