How life insurers will save the future

Are you adequately prepared for retirement?

I know what my answer is. Though I have contributed to a 401k for some time, other vehicles, such as investments, and especially life insurance, continue to elude me. In other words, I am on the right track, but I have a long way to go.

Even with more than 10 years of insurance industry experience, I plead ignorance when it comes to purchasing life insurance. The excuses mount up. I haven’t had the time, it’s too much of a hassle, or it’s too expensive.

The scary truth is I am not alone. Studies show that Millennials drastically inflate the cost of life insurance, in some cases by over 80 percent of its true cost, precluding them from making the purchase.

In fact, there is a $16 trillion coverage gap in U.S. life insurance coverage, according to LIMRA. No matter how you slice it, that is a huge number.

There is no excuse, especially when information is available at our fingertips. It is imperative, not only for yourself, but for your loved ones, that you know your options. And yet many of us do not.

Why? Is it a fear of the unknown?

Fear of the unknown sparks a retirement crisis

Humans, by nature, resist the unknown. Unfortunately, fearing the unknown has created a retirement crisis.

That’s not all. If we take a step back, we can clearly see other signs of this growing crisis: Ill-informed consumers and a laissez-faire “I’ll-save-later” approach to planning.

A whopping 75 percent of Millennial parents don’t have life insurance, according to data from Bestow, an online life insurance platform. Reasons vary, but in a nutshell, young American adult households are indifferent to the idea of having life insurance.

Yet, we live in an age when information is readily available, from digital channels (social media, email, presentations, and so forth) to traditional and robo-financial advisors. We should be fully equipped for what the future has in store. In doing so, we have an opportunity to avoid a retirement crisis and create a roadmap to future success.

The insurer’s role in saving the future

Although Millennials are still figuring out how best to approach retirement savings, once they start – and they will – life insurers should be prepared with the technology, tools, and resources needed to arm their clients with the information they desire.

So what do they want? For most, they expect immediate access to insurance services, any time and every time. That could be crowd-sourced peer-to-peer insurance pools or life insurance built for and customized to their demographic.

To achieve this, life insurers need robust solutions that can deliver information to the customers in the way they expect to see that, whether that’s via mobile, tablet, desktop or, for some, good old-fashioned mail.

If that sounds a lot like digital transformation, that’s because, in many respects, it is.

Rather than put off transformation, life insurers can bridge the gap between today’s core systems and the digital insurer of tomorrow. A solution that integrates with modern core systems and business applications while extending legacy systems can accelerate digital transformation.

To accomplish this, insurers need a way to manage the content, cases and processes that core systems can’t. This requires filling gaps in core systems with comprehensive content services capabilities such as enterprise content management, capture, document management, secure file sharing, workflow and customer communication management.

Insure the life of your organization

Another way life insurers should secure their future is to court the Millennials they are serving. Industry findings show that roughly 10,000 baby boomers will turn 65 today and every day thereafter, through 2027.

As an aging workforce moves into retirement, taking with them years of experience and expertise, Millennials have an opportunity to close the information gap, using their technical expertise to bring forth new age innovation that will evolve the way life insurers do business.

In today’s rapidly changing environment, your customers and employees demand access to pertinent information when they need it, and where they need it. Creating an omni-channel experience is no longer an option. It is an expectation.

That’s how we save the future.

Jake Basen

Jake Basen

Jake joined Hyland in September 2017. He grew up in Avon, Ohio, and moved to Columbus to attend The Ohio State University. Previously, he spent nine years with Nationwide Financial in Insurance Sales. He is now back in Avon with his wife, Alie, 4-year-old son, Cameron, and 5-month-old daughter, Penelope.

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