American life insurance
American life insurance

American Life Insurance Trends 2023

In this guest article, we want to share the key trends in the American life insurance market and why insurance companies need to make their New Year’s resolutions!

Every year, millions of people make New Year’s resolutions. While the start of the new year has traditionally provided a positive or positive start for many and the opportunity to identify new goals or plans to shake off old negative habits, the stress and burnout associated with the pandemic has impacted the way in which we face life, relationships and maybe even our relationship. resolution.

ReMark’s latest Global Consumer Report (GCS) provides insight into the changing attitudes of American consumers driven by the pandemic. Life insurance companies and insurance ecosystem players may want to integrate this valuable information from reports into their marketing and product strategies. The main trends identified by this study are listed below.

Americans want to know more about life insurance.

Don’t be surprised to see the word “life insurance” on your list of people’s New Year resolutions this year. American interest in life insurance has increased tremendously in recent years, mainly driven by COVID-19. 61% of US respondents said they needed more education on life and health insurance. This is very high among millennials.

One in three said that COVID-19 has changed their attitude towards the risk and value of insurance. This was most significant among those who had known someone who died of COVID-19 (70%). According to the ReMark Insurance Literacy Score, the United States is ranked 11th out of 22 countries surveyed. Americans want to learn more about life insurance. But their insurance literacy lags behind other developed countries like Canada, Sweden, the UK and Singapore. It is the opportunity and responsibility of the US life insurance industry to increase the life insurance literacy of American consumers.

Many have purchased or upgraded life insurance coverage. Is there anything else to follow?
According to the GCS report, 64% of respondents said they had increased their life insurance coverage by 2021.

American life insurance

Approximately half say they recently bought a new product, especially whole life policies. When asked what led them to purchase, 19% cite recommendation from family and friends and 14% say it was due to COVID- related events. Then, It is uncertain if more Americans will follow this trend in 2022.

But it is very likely that as the COVID-19 crisis continues, so does people’s need to ensure adequate insurance protection. Then, It is up to each insurer to take advantage of this positive trend and actualize their potential customers’ desire to get more insurance protection.

Americans want to exercise and sleep better. Life insurers want the same for us.
Then, The report suggests 7 out of 10 survey respondents say the pandemic made them more proactive about their health. When asked what aspect of health they want to improve, “better sleep” has become the fastest-growing goal, ranked

After “more exercise.”

Wearable health devices, which track many health-related activities including steps, calories and sleeping patterns, are growing in popularity. Interest in ownership of wearables for health purpose has increased from 27% to 32% in two years. Then, This is good news for life insurers, as healthier policyholders will bring better risk profiles and overall positive financial outcomes.

Some insurers are already taking an active role in integrating HealthTech into their insurance customer journey value chain, from product development and underwriting to inforce management. Then, This trend is expected to continue as more ecosystem players including startups, vendors and incumbent players are joining this field.

Conclusion

New Year’s resolutions for insurers: Empower and educate consumers

This year, we suggest life insurers make their own New Year’s resolutions. Then, Amid the rising interest and sales of life insurance among American consumers. Life insurers have immense opportunities and challenges ahead, including the ongoing insurance protection gap.

Every insurer’s list should include action items aiming to empower consumers to improve their life insurance literacy. Then, Companies with visionaries and innovative consumer-focused approaches will gain a competitive edge – and a leading industry position for years to come.

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