Numerous studies show that there are problems with the demand for life insurance services in the USA. Despite the fact a significant part of the middle class has not accumulated enough funds for retirement, the industry lags behind other financial products in terms of growth. This suggests that insurers have not proved the need for their own services to consumers.
Insurance companies need to improve some models in the market. In particular, they have to prove that are able to provide Americans in old age, achieve better financial results for customers and win the war for talents.
“Life insurers should continue to focus on providing high-quality products that have very strong benefits and greater reliability,” said Ed Majkowski, EY Americas Insurance Sector Leader.
The EY report also forecasts that advisory services and paid customer communication models are likely to grow, while product sales will decline. Auditors are confident that subscriptions for access to tips, reviews and recommendations will increase. They also believe that companies providing flexible products to customers will benefit.
The life insurance industry also faces the need to improve the skills of its own personnel. Meanwhile, bots, artificial intelligence, and mechanical engineering will provide more services. “Insurers should continue to retrain existing personnel and attract new talents, - says Majkowski. – I think this industry is very attractive, but university graduates choose digital companies over financial ones.”
In the report, EY recommends lowering the costs of LICs and increasing the efficiency of business processes.
Source: https://www.usnews.com/life-insurance/how-does-life-insurance-work
