Younger consumers are particularly wary of complex terms and reluctant to buy
Life insurance companies are trying to get younger people to buy their products, but they're having trouble because their communication is too complicated, a J.D. Power study finds.
The problem
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Confusing policies: Most people don't fully understand their life insurance policies.
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Jargon and long documents: Companies use too many technical terms and long, boring documents.
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Not meeting needs: Many people feel their life insurance policy doesn't fit their needs.
What younger customers want
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Simple explanations: They want things explained in plain language, with guides and diagrams.
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Easy-to-read statements: They want statements that are clear and concise.
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Personalized communication: They want companies to understand their needs and communicate with them in a way that makes sense.
What companies need to do
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Simplify their communication: Use clear language, visuals, and videos to explain things.
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Tailor communication to individual needs: Make sure customers understand their policies and how they meet their needs.
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Make it easier to do business: Simplify processes and make it easy for customers to get the information they need.
This study shows that life insurance companies need to update their communication style to attract and keep younger customers.
More about the life insurance study
According to the J.D. Power 2024 U.S. Individual Life Insurance Study, insurers still have a lot of work to do, with the majority of customers indicating their insurer makes things unnecessarily complicateda problem that is particularly acute among the youngest generation of customers.
Life insurers are facing new communication challenges as they court younger consumers, saidBreanne Armstrong, director of insurance intelligence at J.D. Power. Currently, only 29% of life insurance customers strongly agree that their insurer makes complex policies simpler, and Gen Z has the lowest incidence of saying their agent or advisor explains things in terms they can easily understand.
"The old model of text-heavy binders and jargon-filled informational packets will no longer cut it. Younger customers are looking for simpler guides, diagrams and easy-to-understand definitions when evaluating policies, Armstrong said.
State Farmranks highest among individual life insurance providers for a fifth consecutive year, with a score of 699.Guardian Life(685) ranks second andMassMutual(673) ranks third.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-10-14 17:26:44
