A large life insurance company needed to predict the future in order to position itself optimally in the rapidly evolving online insurance sales market.
A Fortune 500 insurance company needed to predict the future of online life insurance sales today. It recognized that fast-moving market-place changes required a thorough analysis of its sales and marketing strategies in the online space. Auto insurance sales had moved online quickly and become commoditized. It was essential for the company to understand and anticipate potentially similar changes in the life insurance market. The company sought insights on the potential size of the online market; the nature and timing of various drivers of change; possible customer impacts and barriers to market development, and how to prepare now for an online environment.
PwC helped the company use new sources of data and analysis to address three primary questions:
Using third-party microeconomic, consumer and technological advancement data, an analysis was performed and a five to ten year forecast developed. The impact of healthcare regulation and electronic medical records was modeled, as were barriers to customer acceptance and necessary technological and operational changes.
The company estimates that under certain scenarios that it can achieve $200 million in online term life insurance sales and substantial growth in its whole life insurance online sales by 2015. As a result, the company has increased investments in online sales and distribution, including investment so improve customer experience, ease of online use and accessibility and increased awareness of its products through its online channel.