* Increasing use of Internet and social media to compare and buy *
A new breed of customers, namely the digital natives, is expected to dominate the life insurance sector, according to PwC’s latest insurance report – Forcing the pace: The fast way to becoming a digital front-runner. These consumers are better informed, more connected and vocal thanks to SMAC (social media, mobile, analytics and cloud).
The report highlights how low-income policyholders, tech-savvy millennials and Generation X-ers are increasingly using the internet and social media to compare and buy products, with direct-to-consumer life policies expected to be a key growth area.
The PwC report shows that revitalising the life insurance sector starts with creating new opportunities with underserved markets, particularly young people and lower income consumers.
While only 11% of customers in the survey have made the move to purchasing life insurance online using a PC, laptop, smartphone or tablet, the report reveals that in the United States alone, more than 60% of consumers aged 18-54 would find this attractive.
According to a consumer poll survey conducted in combination with the life insurance report, consumers highlighted ease of access (63%), 24/7 availability (60%) and cost effectiveness (53%) as the top three reasons that would influence their decision to purchase life insurance online.
The report indicates that in comparison to other sectors – including non-life insurance – life and pensions businesses have been slowest to capitalise on the commercial potential of the digital age.
The report is available at http://www.pwc.com/insurance/digital-life
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