In the evolving world of life insurance, organizations are seeking innovative ways to meet the changing needs of consumers. One effective way is through embedded insurance, which has been transforming nearly every industry and is long overdue for life insurance.
Simplify the consumer experience
Traditional life insurance tends to be complex and time-consuming, leading many potential consumers to delay or altogether avoid purchasing life insurance policies. Embedded insurance, on the other hand, helps simplify the entire process by making it easily accessible.
By eliminating the need for separate applications and extensive paperwork, embedded insurance helps significantly reduce barriers to entry, encouraging more people to obtain coverage.
There’s been progress toward improving the consumer experience. However, there’s still an opportunity to improve – especially as more consumers are attracted to the convenience and ease of buying online. This year, for the first time, LIMRA’s 2023 Insurance Barometer Study found consumers would prefer to purchase life insurance online versus via in-person meetings1. One way to help meet this desire effectively is by moving from integrated experiences toward fully embedded experiences.
| Integrated experiences | Embedded experiences |
| One level of connectivity and experience | Deeper experience based on consumer-centric approach |
| One-way exchange of data and information | Two-way exchange of data and information |
| End user completes experience through multiple user interface (UI) transitions | Seamless end user experience completed in one UI |
| User experience happens where the company wants it to | User experience happens where the consumer is |
We live in a world of consumers who demand “Amazonification;” taking too long is not an option. Most insurance carriers are losing business due to abandonment.
Enhanced personalization
In the past, life insurance policies were often one-size-fits-all, lacking the flexibility to cater to individual needs. With embedded insurance, life insurance companies can offer personalized coverage that better aligns with the unique circumstances of each consumer.
This level of personalization not only helps improve consumer satisfaction but may also help life insurance companies better manage their portfolios and reduce risk.
Cross-selling opportunities
For life insurance companies desiring to better reach younger demographics such as Millennials and Gen Z, it’s important to consider they may tend to favor seamless digital experiences. Embedded insurance caters to this preference by offering coverage options during their everyday experiences within digital platforms, apps and other online services.
Think of it as digital bundling, enabling partners from virtually any industry to offer insurance policies as an add-on or feature.
Build consumer trust
Trust is a crucial factor in the insurance industry, especially when it comes to life insurance. Being the second highest direct writer of life insurance policies in the U.S. has taught us that consumer trust is key to a healthy relationship.2 That’s why TruStageTM takes a consumer-centric approach to everything we do.
Our embedded insurance capabilities help create a sense of trust by associating insurance with activities that consumers already engage in from companies they already trust.
Why partner with TruStage?
Backed by in-depth understanding of the mid-market and 85+ years of industry service, TruStage is a trusted life insurance partner providing market-leading, seamless API integration capabilities. We have developed a speedy 10-minute process that enables consumers to make informed decisions quickly and get essential coverage.3 The TruStage approach helps ensure that your company’s growth and stability are not compromised while maintaining cost efficiency.
Our services include fully automated underwriting, high acceptance rates, API-enabled integration and a one-and-done agent and consumer engagement.
1LIMRA, Life Insurance Fact Sheet, 2023 Insurance Barometer Study, 2023.
2LIMRA, Q1 2023 LIMRA New Business report, 2023, March 31.
3TruStage internal data, January 2022 – October 2022.
TruStage™ is the marketing name for TruStage Financial Group, Inc. its subsidiaries and affiliates. Securities distributed by CUNA Brokerage Services, Inc., member FINRA/ SIPC, a registered broker/dealer, 2000 Heritage Way, Waverly, IA, 50677. Investment and insurance products are not federally insured, may involve investment risk, may lose value and are not obligations of or guaranteed by any depository or lending institution. All guarantees are based on the claims paying ability of the underwriting company. Insurance products are issued by CMFG Life Insurance Company, MEMBERS Life Insurance Company, CUMIS Insurance Society Inc., CUMIS Specialty Insurance Company Inc., American Memorial Life Insurance Company, and Union Security Insurance Company.
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