Overview
There's a plethora of U.S. consumers just waiting to be drawn upon by the life insurance industry. Unfortunately, the life insurance industry has failed to answer such consumers call.
Who is this group? It's the middle market an underserved and potentially profitable market which has kept the insurance industry puzzled for a number of years and that no one is reaching out to. Such middle market consumers are trying to save money and are concerned about the price and complexity of products with such persons also being fixated on developing a suitable nest egg.
There are 48 million uninsured or underinsured U.S. households who say they want more life insurance. Cover would increase by $9.5 trillion and add an estimated $17 billion of premium to industry offers if the 48 million households bought the amount that they believe they need.(LIMRA International Trillion Dollar Baby: The Sales Potential of the Underinsured Life Market)
How does a life insurance company break into the middle market? - It ultimately comes down to a) Education (educate these consumers to understand insurance and suppress the belief that insurance is too complex by offering simplified products); and b) Choices (offering of choices - products and coverages - to tailor to the financial needs and budgets of this market). Such middle market consumers' financial needs are more simple when compared to those from more affluent households. They are looking for ways to protect their income for the loved ones of their family they want to ultimately take care of in case they pass away.
For those life insurers not already tackling this market or who seek further assistance with their current efforts, Swiss Re and PlanetSoft have partnered to bring you LifeGuideSI, the US insurance industry's most innovative entry into the world of simplified issue life coverage. Bringing together leaders in reinsurance and insurance technology, our combined expertise will allow life insurers' for groundbreaking opportunities.
