5 Ways Life Insurance companies are prioritizing customers post COVID-19
The lingering COVID-19 pandemic has made Filipinos become more forward-looking and has driven them to set their sights on long-term preparations such as insurance and retirement planning.
As the COVID-19 pandemic disrupted the world, it has triggered a significant shift across all major ecosystems in the world. Some of the most impacted sectors are healthcare and life insurance. According to studies, around 4,000 people across the Asian region90% of Filipinos found retirement planning to have become more important since the health crisis began.
Above the region’s 73% average, the insurance companies say the Philippine average reflects its residents’ heightened focus on achieving financial security amid the uncertainty resulting from the pandemic. Let’s have a grasp of some of the major post-COVID shifts taking place in the life insurance industry across the world.
Leveraging digital
The Philippines has one of the highest numbers of COVID-19 cases in Southeast Asia, leading to more digital goals in the insurance sector. The spike in consumer interest to buy insurance has nudged insurance companies to make deep investments in digital transformation.
Insurance companies are racing to ensure that consumers can purchase insurance products online, pay premiums and conduct other transitions online in a seamless manner. The process of underwriting has also become swifter as companies can no longer afford physical visits and exhaustive approaches that take too much time.
The race to acquire more consumers has encouraged businesses to re-imagine the entire journey of consumer acquisition to retention and servicing. So, when buying insurance, ensure that you have a provider that leverages a digital interface to enable all your future transactions. Life insurers operationalize for the new normal as they adapt to the new normal, where staff is disbursed.
Customizable health plan
The customizable health plan allows an individual to choose and pay only for the health coverage they need while providing benefits and protection from over 100 critical illnesses.
Re-evaluating their business models, turning profits back to loyal customers in the form of rebates, and investing in new customer-friendly products and digital channels
Insurers have had their business continuity and operational processes stress-tested in response to increased claims and policy service volumes, exacerbated by lower sales activity, and ongoing workforce health and safety concerns.
Most life insurers in the Philippines have postponed or waived paramedical requirements for new applications. Some say they have added questions on COVID-19 exposure and travel to the underwriting process, others are requiring good health statements, accepting electronic health records, and allowing historical exams and lab data in lieu of current exams, to cope with the new normal.
Data, analytics, and social media have increased in significance
Traditionally, life insurers require new applicants to get blood tests at a nearby test center or have a paramedical professional perform a basic check-up at the customer’s home. With the social distancing norms in place, insurers are now relying on alternative data sources, such as historical medical records, data from pharmacies, and online lab reports. Sales and marketing professionals have begun analyzing time spent on social networking platforms and streaming content behaviors to devise marketing plans and strategies, focusing more on social media, paid searches, and online ads than traditional mailers.
The cost of customer confidence and trust
The future has rarely been so uncertain, and people are looking for backup plans and reinsurance options. The pandemic has given insurers an opportunity to draw closer to their customers to help them mitigate economic hardship.
