Life Insurance Takes A New Turn with Changing Online Behaviours

According to a comprehensive research report commissioned by NobleOak Life Insurance, “Life insurance – The online shift in consumer behaviour” found that technology has been enthusiastically adopted in financial services, particularly in banking, where 95% of people have been impacted by the introduction of technology. All levels of general insurance have also seen high adoption rates with car, house, contents and health insurance cover rating highly for self-directed research and purchase.

However, the research found that Life insurance has been largely immune so far with 72% of those surveyed report not using technology for any aspect of Life insurance at all.

This is about to change.

During the past five years the community’s awareness for the need for Life insurance has significantly increased as a result of educational campaigns by regulators and professional bodies, as well as advertising by many direct Life insurers.

The survey found that 50% of those questioned did not actively seek any form of advice about Life insurance and 71% said they did not want to pay anything for advice.

This represents a huge opportunity as 79% of survey respondents also said: “With the right resources, they would be willing to make a Life insurance purchasing decision online without a financial adviser”.

Based on the findings of this report, we can assume that people are willing and able to purchase Life insurance online. They do however need better online information and tools to help them understand and calculate their Life insurance needs. This must be low cost and provide them with an accurate indication of what type of insurance will work for them and their families.

The revolution has started, and now it’s up to the Life Insurers to help consumers accelerate this online shift. If Life insurers can meet this challenge and help Australians become more self-directed in the research, the assessment and the purchasing of Life insurance, then the trend of Life insurance being more actively purchased by consumers will quickly accelerate.

Sources:

Taylor. M., 2016, ‘Educated, self-directed approach urged on life/risk’, Money Management, 4 February, viewed 4 February 2016

Aussies choose web over advisers for insurance needs, Risk Adviser, 8 February 2016, viewed 8 February 2016