The vision for Life.io was to help carriers rebuild their relationship with customers. The company’s customer engagement platform uses behavioral economics, social psychology, and personalized content to capture insights and help carriers build brand loyalty with their policyholders.
Founder and CEO of Life.io Jon Cooper spoke to Oliver Wyman’s Farooq Sheikh about how carriers can differentiate themselves in an industry of evolving consumer expectations and new competitive threats.
Life.io hopes to make cross-selling more common in the life insurance industry. The idea: help carriers better engage their customers through online loyalty programs, so the companies know what products would be most interesting to their clients now and in the future.
Jon points out that most of these carriers are not single product companies—they are large and diversified—but very few life insurance carriers are effectively cross-selling products. There are maybe only one or two exceptions where the average policyholder has also bought three to five other products.
Jon believes that companies selling term life insurance products need to regularly interact or engage with their customers, so they can collect data about customers’ circumstances and preferences. That way they can sell term life insurance and then in a few years’ time approach the same customers about investment or retirement products.
While these initiatives have an obvious appeal, Jon urges companies to be very thoughtful about the key performance indicators they want to improve before they begin to rethink their operations.
“When you think about an entirely new customer journey, you are thinking about underwriting, marketing, distribution and technology. If you don’t have a clear, established set of priorities, everyone has a voice at the table and you end up trying to be all things to all people and that makes it very difficult to succeed,” he said.
“Having a long-term outlook, with a clear, established set of priorities is a major differentiator for a successful undertaking.”