A new report has
recommended that life insurers in Asia use simple language,
multi-media and a well-organised menu structure that allows
prospects to easily analyse how much of one type of insurance
protection they need as key points in the online sales
process.
The report, which was
recently published by consulting firm Celent, explained that
although the internet has entered the sales process for life
insurance in some Asian markets for about 10 years, its use and the
premium generated through this channel are minimal.
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For example, it said that
many companies that have agents as their major distribution channel
are cautions about channel conflict and reducing agents’
motivation.
Furthermore, the report
said life companies that already have online distribution in Asia
do not generate much premium income through this channel yet, so
other life insurers are concerned about the return on investment
when they start thinking about developing the channel.
Given these challenges,
the report argued that an insurance website serves more functions
than direct sales, and it can be used as a marketing tool as well
as a lead generation tool. It is also a platform for customer
service and agent service, noted the report.
Other recommendations from
the report included:
- Adequate personal
data protection and disclosure policy are essential, since the
report says customers’ consciousness of privacy protection is
intensifying. - Allowing consumers
to send an SMS to ask a question - Using real-time
communication tools, such as live chat and a live video
helpline.
