Life insurance offers a unique opportunity for credit unions to offer a service that may strengthen long-term relationships with members, while also helping improve their financial futures.
But as technology continues to influence consumer expectations for ease and simplicityâ€”think Amazon and Netflixâ€”life insurance has some work to do. It needs to be easy for all consumers to understand, compare, access, purchase and service.
The following consumer trends give us insight into how we can better provide options that meet evolving member expectations, ensuring youâ€™re there for your membersâ€”now and for many years to come.
Changing demographics. In the past five years, the multicultural member population at credit unions has grown 61 percent. This population is primarily composed of millennials or younger, and we know these consumers prefer digital tools and mobile apps.1
Fast, intuitive digital experiences are vital for attracting and engaging this shifting member base, but that doesnâ€™t mean it will be at the cost of your older members. All generations are looking for web-based solutions. In fact, 45 percent of seniors say theyâ€™ve visited the website of a life insurance company, and 36 percent say theyâ€™ve used search engines to find life insurance information.2 As this group ages, many will look for fast and easy options to cover their life insurance needs.
Massive shift to the web and mobile. In 2017, 55 percent of consumers visited a life insurance providerâ€™s website, and 52 percent used a search engine to find information on life insurance.2 Considering that almost four out of every five U.S. adults now owns a smartphone, itâ€™s no surprise that web and mobile use is the norm.3
Additionally, throughout their purchasing journey, consumers now switch between smartphones, laptops and tablets. Most start on their phone but complete their transaction through a different device or channel.4
Choosing a provider with strong search engine optimization (SEO) practices and a streamlined transition between devices may enhance your presence onlineâ€“â€“helping position you as a leader in the industry. Â
Demand for simplified purchase processes. In the age of Amazon, consumers expect every buying experience to be fast and simple. And because the average attention span is now just eight seconds, itâ€™s harder than ever to captivate consumers.5
With 10,000 brands vying for consumersâ€™ attention each day, only those who offer simplified purchase processes will stand out.6 That means making the whole experience easyâ€“â€“from researching, to purchasing, to servicing.
If you donâ€™t have what consumers are looking for online, theyâ€™ll simply go somewhere else.
The reason doesnâ€™t matter.
The need for life insurance for nontraditional reasons is growing. 52 percent of consumers are using life insurance to supplement retirement income and 54 percent plan to use it to pay off their mortgage.7
But what hasnâ€™t changed over the years is that most adults are either un- or under-insured. So, when one in three people admits they simply donâ€™t have enough life insurance overall, itâ€™s time to take a step back and think about what barriers are preventing your members from getting the coverage they need.7
Download our report at cunamutual.com/lifematters to discover ways to help simplify the complex life insurance process and better serve all consumers.
Â© CUNA Mutual Group, 2018