FROM THE LEARNING CENTER
Growth Is a Big, Yet Solvable, Challenge for Life Insurance Carriers
by Lena Chukhno | September 08, 2022
2.5 Minute Read
This latest edition of our newsletter focuses on helping life insurance carriers solve their growth challenges. I talk everyday with carriers who know growth will come through modernizing their products and offering streamlined customer experiences to serve the next generation of life insurance buyers. Fortunately, they also have the capital to fund innovation. But a key challenge is that legacy technology is limiting the speed of change and fragmented vendor solutions are not only inadequate, they’re often making everything more complicated.
I recently wrote an article about the common growth problems I hear from carrier partners and, most importantly, how to address them. Some interesting themes have emerged.
- Among carriers with ambitious growth plans, the biggest obstacle is their existing technology infrastructure – it simply can’t support their vision.
- Modern customers’ expectations of the life insurance purchase process differ dramatically from just a few years ago. And so building a transactional product with an omnichannel enrollment and an instant or accelerated UW is on most carriers’ roadmaps. But the challenges of an in-house build are arduous. And according to industry research, 70% of technology transformations fall short of expectations.
- Carriers have a test-and-learn mindset. All too often, it’s prohibitively time-consuming and expensive to launch and iterate new products or features – again, mostly because of the technology that needs to support the changes.
Given the challenges we are hearing from our partners, I thought it might be helpful to also share a recent McKinsey report on how leading insurers identify competitive advantage and address challenges that limit their growth.
McKinsey Report TL;DR
“Insurers should carefully consider each part of the industry value chain and determine where they can and cannot reasonably have competitive advantage. And similar to other industries—such as auto manufacturers—life insurers now need to consider unbundling their value chains and doubling down on the right links.”
Our tech = your competitive advantage.
You Might Be Wondering…
Q: Why should we trust an insurtech company to power our new life insurance business initiative?
A: It’s simple. We make the process of innovating life insurance technology easier for carriers.
Carriers spend millions of dollars investing in innovation teams and projects that often don’t yield the desired business results. So it’s understandable that tapping an end-to-end, single-source solution for your next innovation effort can seem daunting.
But here’s the thing with Bestow. Our team has successfully built omnichannel products and experiences from the ground up. The result: delightful advisor and client experiences, improved product margins and operational efficiencies, and the opportunity to grow into new customer segments.
With Bestow for Enterprise, we take all those learnings to our partners and personalize builds for your business goals. We’re an extension of your team, with demonstrated expertise in building and launching what your business needs.
Thank you for reading, and we look forward to working together.
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Bestow is the first life insurance technology company designed to reach today’s digital life insurance buyers. We build instant, 100% digital life insurance products and buying experiences that unlock a massive consumer market. Companies of every size — from startups to public companies — leverage our software to sell life insurance and improve efficiency and profitability by managing the business online.