BISA Magazine - Quarter 2, 2017 - 4

UP FRONT

Converting
Digital Natives to
Life Insurance
If banks are going to be true
financial advisors, they
must also know something
about life insurance.
- Stephanie Roy, Mintel

M

illennials are different. Stephanie Roy, who is
director of insights - insurance for Mintel,
calls them "digital natives." They have been
using computers and cell phones from an early age, and they expect to access information,
including insurance information, from their digital devices.
Many millennials believe that online sources can handle
most of their needs. Members of other generations are more
likely to value expert advice from a live financial advisor.
Fifty percent of respondents in a recent study of millennials
said robo-advisors provided financial advice equivalent to
that offered by live advisors, said Roy, who was a panelist at
a session on "Life Insurance - 2020 Vision Now in 2017" at
BISA's Annual Convention.
Roy has been following some of the new insurance startups that cater to the millennial generation. The type of life
insurance offered is usually a plain vanilla variety like simple
term life insurance. The online life insurance startup Ladder,
for instance, encourages customers to "buy term, invest the
difference," and its online materials present a quick, easy
way to understand insurance, Roy said.
A startup called Lemonade received regulatory approval in
New York to sell homeowners and renters insurance. The
company's website emphasizes simplicity and speed: "90 seconds to get insured," and, "We pay claims super-fast." Seventy-

4
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five percent of those who have
signed up for Lemonade's homeowners and renters insurance are under
the age of 35, Roy said, and 87 percent are
first-time buyers. The rest switched carriers, with
many coming from large companies like Allstate, State
Farm and Travelers, according to Lemonade's website.
The firm has only been live for four or five months, Roy said,
and its experience is much too limited to move the overall
insurance needle. But where property and casualty insurance
companies lead, life insurance carriers often follow.
A lot changes when customers age and have more complex
insurance needs like tax planning or long-term health care -
to say nothing about retirement, of course. But if banks are
going to be true financial advisors, they must also know
something about life insurance.
When Roy saw data suggesting that 31 percent of consumers
with life insurance didn't know what type they had, she said
that fact stood out to her. Even after they buy life insurance,
many consumers still don't know what it is.
The lesson in all this may be that banks need to provide insurance advice through various channels, such as live experts
for more complex insurance needs and web portals, perhaps,
for those digital natives, Roy said. - Andrew Singer


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Table of Contents for the Digital Edition of BISA Magazine - Quarter 2, 2017

Table of Contents
BISA Magazine - Quarter 2, 2017 - Cover1
BISA Magazine - Quarter 2, 2017 - Cover2
BISA Magazine - Quarter 2, 2017 - Table of Contents
BISA Magazine - Quarter 2, 2017 - 2
BISA Magazine - Quarter 2, 2017 - 3
BISA Magazine - Quarter 2, 2017 - 4
BISA Magazine - Quarter 2, 2017 - 5
BISA Magazine - Quarter 2, 2017 - 6
BISA Magazine - Quarter 2, 2017 - 7
BISA Magazine - Quarter 2, 2017 - 8
BISA Magazine - Quarter 2, 2017 - 9
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BISA Magazine - Quarter 2, 2017 - 11
BISA Magazine - Quarter 2, 2017 - 12
BISA Magazine - Quarter 2, 2017 - 13
BISA Magazine - Quarter 2, 2017 - 14
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BISA Magazine - Quarter 2, 2017 - 18
BISA Magazine - Quarter 2, 2017 - 19
BISA Magazine - Quarter 2, 2017 - 20
BISA Magazine - Quarter 2, 2017 - 21
BISA Magazine - Quarter 2, 2017 - 22
BISA Magazine - Quarter 2, 2017 - 23
BISA Magazine - Quarter 2, 2017 - 24
BISA Magazine - Quarter 2, 2017 - 25
BISA Magazine - Quarter 2, 2017 - 26
BISA Magazine - Quarter 2, 2017 - 27
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BISA Magazine - Quarter 2, 2017 - 30
BISA Magazine - Quarter 2, 2017 - 31
BISA Magazine - Quarter 2, 2017 - 32
BISA Magazine - Quarter 2, 2017 - Cover3
BISA Magazine - Quarter 2, 2017 - Cover4
http://www.nxtbook.com/nxtbooks/bisa/2017q4
http://www.nxtbook.com/nxtbooks/bisa/2017q3
http://www.nxtbook.com/nxtbooks/bisa/2017q2
http://www.nxtbook.com/nxtbooks/bisa/2017q1
http://www.nxtbook.com/nxtbooks/bisa/2016q4
http://www.nxtbook.com/nxtbooks/bisa/2016q3
http://www.nxtbook.com/nxtbooks/bisa/2016q2
http://www.nxtbook.com/nxtbooks/bisa/2016q1
http://www.nxtbook.com/nxtbooks/bisa/2015q4
http://www.nxtbook.com/nxtbooks/bisa/2015q3
http://www.nxtbook.com/nxtbooks/bisa/2015q2
http://www.nxtbook.com/nxtbooks/bisa/2015q1
http://www.nxtbook.com/nxtbooks/bisa/2014q4
http://www.nxtbook.com/nxtbooks/bisa/2014q3
http://www.nxtbook.com/nxtbooks/bisa/2014q2
http://www.nxtbook.com/nxtbooks/bisa/2014q1
http://www.nxtbookMEDIA.com