- Develop a proprietary, multi-factor analytical model that determines financial well-being from the customer point of view, especially to the moments that matter in their lives. It’s not enough for insurers to understand what customers want — they must also know when and how they want it.
- Understand customers’ financial stressors and review existing portfolios and the new product pipeline for those that can specifically address these issues. Offerings that deliver “quick wins” (both for consumers and insurers) can advance the dialogue on financial well-being.
- Adopt “evolutionary” and “revolutionary” in designing new products and experiences — that is, evolve existing products through simplification and basic enhancements and innovate boldly with new product types (e.g., portable group policies) and embrace digital transformation to offer entirely new experiences.
- Develop digital tools based on artificial intelligence and other advanced technologies but surround them with a human element, such as real-time access to financial advisers or customer service agents via phone or live chat. This way, firms can have the right conversations with consumers in the right way at the right time.
- Develop a platform strategy, recognizing that platforms designed to promote financial well-being may need to incorporate multiple external parties, including other financial services providers. Scalable platforms should reduce the cost to serve, support evolving technology sophistication and enhance customer experiences.
- Develop an integrated brand and marketing strategy to effectively communicate and drive demand. Consumers must come to understand that insurers want to help them live richer, less stressful lives, rather than simply selling policies to protect against losses and other unfortunate events.
- Design and build the necessary technology architecture, which likely requires digitizing legacy systems so next-generation tools and apps can be deployed. Most insurers today face serious legacy system constraints in at least some channels or lines of business. These constraints must be removed if insurers are to meet customer expectations for seamless and personalized experiences across channels.
- Orient all touch points around trust and transparency. It’s not enough to simply secure channels, assets and data to be compliant. To build trust, insurers must also share information transparently (like digital leaders in other sectors) and deliver high-quality, personalized experiences.
Financial Well-Being: Everyone Wants It
Insurers must develop digital tools and surround them with a human element, such as real-time access to financial advisers.