These are not clients who have rejected the concept of life insurance. They are clients who have been failed by the industry’s communication approach and who represent a significant opportunity for advisors willing to meet them where they are.
“Consumers have high standards for their personal financial services products,” said Samantha Chow, Global Leader for Life Insurance, Annuities and Benefits Sector at Capgemini. “When it comes to life insurance, they recognize its importance, but complexity at the point of purchase and post-sale silence undermine policy ownership — putting customer relationships at risk and triggering exits that cost the industry billions.”
The AI question: augmentation, not replacement
One of the report’s more nuanced findings concerns the role of artificial intelligence in the client journey.
While more than half of consumers say they plan to use generative AI tools to research and compare life insurance products within the next three years, two-thirds still prefer to work with a human advisor when finalizing coverage decisions, and 85% want advisor involvement at some point during the purchase process.
Prudential Advisors has already moved in this direction, using AI to work through millions of proprietary leads, enriching data on past clients so that when an advisor reaches out, they are armed with far more relevant information about the individual. The report’s findings suggest this model — AI handling research and prospect identification, advisors handling the relationship and decision — reflects what consumers actually want.