1、1New customer trends in the global life insurance industrySay No to MaturityOver the past few years some members of the global life insurance industry have come to accept that the growth years are over.But not at ReMark.In 2014,ReMark is“Saying No to Maturity”offering clients and partners the latest

2、 thinking on how new technologies and smarter strategies can reinvigorate life insurance growth in developed and emerging markets.This report is the first part of that thought leadership initiative.Throughout 2014 we will be examining how insurers everywhere can manage the challenges of todays insur

3、ance marketplace and deliver greater security for their clients.For more research,insights and ideas visit New customer trends in the global life insurance industryA report by ReMark International and NMG Consulting(May 2014)2 ReMark International NMG Consulting.All rights reserved.Published by ReMa

4、rk International&NMG Consulting May 2014Principal Consultant:Tom DunbarResearch Team:Aidan Helmbold Jessica SbragiaEditor:John JoyceDesign:Kevin Franklin Christina Khohonggiem ReMark International 2014 3New customer trends in the global life insurance industryExecutive Summary 5About this research 6

5、KEY THEMES 1.Life insurance buying decisions differ between developed and emerging markets 72.Persistency management requires an integrated approach 93.Demographics and unbundling are key risks to growth and profits 114.Look beyond the channels to see big changes in buying behaviour 145.What do thes

6、e trends mean for your insurance business?17Research Partners 19Contents4 ReMark International NMG Consulting.All rights reserved.5New customer trends in the global life insurance industryExecutive SummaryIt is increasingly clear that the global life insurance industry faces demographic,economic,soc

7、io-political and consumer behaviour trends that could dramatically curtail future growth.This conclusion is not just a challenge for insurers.It is important to the hundreds of millions of individuals across the world who would benefit from the security life insurance provides.It also has implicatio

8、ns for governments and policymakers who increasingly understand the part a profitable,innovative and competitive insurance safety net can play in public policy.This research examines some emerging customer trends that insurers need to understand.Looking across both developed and emerging markets,it

9、identifies five key and often interlinked themes.1.Life insurance buying decisions differ across developed and emerging markets The dominance of the adviser in the sold not bought life insurance distribution model has tended to obscure significant differences between developed and emerging markets.A

10、s insurers around the globe seek new avenues of growth there must be an increasing focus on buyer behaviour and purchase motivation.2.Persistency management requires an integrated approach Improving persistency requires better management of adviser relationships and a deeper understanding of custome

11、rs and their motivations.One underexplored aspect of retention is a focus on retention potential at sale.3.Demographics and unbundling are key risks to future growth and profit Over the past decade,insurers have reaped a demographic dividend from distinct population trends in both developed and emer

12、ging markets.Those demographics are now changing and the industrys response to those changes and to the impact of unbundling in emerging markets could determine its growth profile.4.Look beyond the channels to see big changes in customer buying behaviour In both developed and emerging markets,channe

13、l structures are heavily influenced by the regulatory and market environment and over time,attain a level of equilibrium.Bound into these channels,insurers may miss big changes in insurance buying behaviours.5.What do these trends mean for your insurance business?The research findings are challengin

14、g for insurers and the industry.They highlight the need for a better understanding of customer motivations across different markets and demographics.They ask significant questions about how different distribution models can adjust to changing customer buying trends.To succeed,insurers need to improv

15、e customer management and address potential conflicts between advisers and other channels.They suggest that changes in demographics and consumer protection regulation will increase pressure on growth and margins in the major life markets.They highlight the need for insurers of all types to embrace g

16、rowth options like better use of datadriven digital marketing but to deploy these techniques strategically.I am pleased to announce that ReMark will further examine these issues in subsequent thought leadership material throughout 2014.Business Partners can access the complete research paper at Coll

17、ins Chief Executive OfficerReMark International6 ReMark International NMG Consulting.All rights reserved.About this researchThis research is based on online interviews with 8,000 consumers across 14 key life markets with fieldwork conducted in December 2013.The sample and methodology complies with b

18、est practice for each market based on a nationally representative set of demographic and economic parameters.CA500Emerging MarketDeveloped MarketUSA1000MEX500BR500SA500FR500UK500GER500RU500JP500CN1000MY500ID500AU500Figure 1:Breakdown of customer study sample by regionTruly global coverage:The 14 mar

19、kets in this research account for around 85%of global life insurance risk premiums and approximately 80%of global GDP.7New customer trends in the global life insurance industryKey Themes1.Life insurance buying decisions differ between developed and emerging marketsIn personal lines insurance,consume

20、rs approach purchase decisions with a clear understanding of their need and a broad understanding of their cover.As a result,the purchase process often occurs remotely(via telephone or online)and focuses more on provider selection than on establishing the need for cover.Sold not bought?By contrast,l

21、ife insurance is sold not bought.Face-to-face advisers are vital in helping customers to articulate and quantify their insurance needs.Global customer research validates this approach:Over 70%of life insurance customers say they use an adviser.More than 10%cite the adviser rather than a self-perceiv

22、ed need as the primary reason for purchase.Of the small percentage of customers who buy life insurance themselves,the vast majority were assisted by life advisers or call centre consultants.Why do customers buy?Despite the dominant role of the adviser in facilitating the sale,there is great value in

23、 understanding what motivates the customer and exploring how buyer values differ by market and evolve over time.In general,customers say they buy life insurance for four reasons:1.Debt management insurance to cover loans and mortgages.2.Family financial security to provide financial security for dep

24、endants.3.Health fears to cover the costs of accidents or ill health.4.Adviser because of an adviser recommendation(rather than a client need or fear).Research into these primary purchase drivers revealed some important differences between customer behaviours in developed and emerging markets.The mo

25、re tangible client needs such as debt management and family financial security are the dominant needs in developed markets.In emerging markets,clients cited health fears and adviser recommendations as key motivations(Figure 2).The impact of welfare provision and product structureThis difference betw

26、een buyer drivers is a rational one.Emerging markets have weaker welfare and healthcare provision and this deepens consumers health-related anxieties.Figure 2:Customer reasons for buying life insurance in developed and emerging marketsDeveloped MarketEmerging MarketHealth FearsFamily ProtectionFinan

27、cial LiabilitiesAdviser8 ReMark International NMG Consulting.All rights reserved.It is important to note that buyer drivers are crucially linked to the structure of the market.In emerging markets,risk products have traditionally been bundled with investment products.As a result,life insurance sums a

28、ssured are less closely linked to quantifiable financial needs such as a mortgage balance or to the family financial situation should the prime income earner die or be injured.The research suggests that these differences have a profound impact on the penetration of life insurance within developed an

29、d emerging markets(Figure 3&Figure 4):Penetration in emerging markets is broadly consistent across age segments and is strongly correlated to wealth(or affordability).Penetration in developed markets is more closely correlated to age,number of dependants and debt levels (as measured by mortgage pene

30、tration).Family finances are key in developed markets Sub-segment analysis in developed markets shows that life cover penetration is highest amongst middle income customers with mortgages and young children.Amongst less affluent consumer segments,life cover penetration falls as customers age and the

31、 need to insure for debt management or family financial security lessens.Key Finding Heightened customer understanding is crucial to sales and retentionUnderstanding customer motivations and how they differ between developed and emerging markets can help insurers fine tune product structures,underst

32、and specific customer segments and develop more effective distribution strategies.As shown in subsequent themes,how buyer values vary across different demographics is also important in analysing propensity to cancel(Theme two)and future market size(Theme three).This suggests a growing role for big d

33、ata systems and capabilities that provide deeper customer understanding and a heightened ability to segment on a behavioural as well as demographic basis.Figure 3:Life insurance penetration by age and wealth Developed vs Emerging MarketsEmerging Markets Only“Understanding customer motivations and ho

34、w they differ between developed and emerging markets can help insurers fine tune product structures,segment marketing and distribution strategies.Figure 3:Life insurance penetration by age and wealth for developed and Emerging MarketsDeveloped MarketEmerging Market(9%)30AgeAge:60Annual Income(USD p.

35、a):31k6030-4545-60(2%)6%2%4%Above Market Average PenetrationLife Insurance Penetration(Difference from Market Average)Below Market Average Penetration0%(3%)(1%)Developed MarketEmerging Market(9%)30AgeAge:60Annual Income(USD p.a):31k6030-4545-60(2%)6%2%4%Above Market Average PenetrationLife Insurance

36、 Penetration(Difference from Market Average)Below Market Average Penetration0%(3%)(1%)Increasing Annual IncomeIncreasing AgeAbove Market Average PenetrationLife Insurance Penetration(Difference from Market Average)Below Market Average PenetrationLifestage10%(1%)(7%)Above Market Average PenetrationBe

37、low Market Average PenetrationChildren Living at HomeChildren Living Left HomeNo ChildrenFigure 4:Life insurance penetration by dependents(life stage)and debt(home ownership)in Developed MarketsHome Ownership13%0%(10%)Above Market Average PenetrationBelow Market Average PenetrationMortgageOwn Home O

38、utrightRentLife Insurance Penetration(Difference from Market Average)Lifestage10%(1%)(7%)Above Market Average PenetrationBelow Market Average PenetrationChildren Living at HomeChildren Living Left HomeNo ChildrenFigure 4:Life insurance penetration by dependents(life stage)and debt(home ownership)in

39、Developed MarketsHome Ownership13%0%(10%)Above Market Average PenetrationBelow Market Average PenetrationMortgageOwn Home OutrightRentLife Insurance Penetration(Difference from Market Average)Life Insurance Penetration(Difference from Market Average)Figure 4:Life insurance penetration by dependants(

40、lifestage)and debt(home ownership)in Developed Markets9New customer trends in the global life insurance industry2.Persistency management requires an integrated approachWhy do customers cancel?The research study highlighted five main reasons why customers cancel their life policy(Figure 5):1.Reduced

41、need as consumers pay off debt or dependants grow up or die.2.Affordability often driven by factors such as unemployment or divorce.3.Replacement consumers take out a new policy(upgrade or downgrade).4.Substitute consumers acquire new or increased cover from an employer.5.Adviser because of an advis

42、er recommendation.Emerging markets cancellations increase as employee benefits improveIn emerging markets,a large percentage of consumers will replace or cancel because they acquire cover via their employer.The higher relative growth rate in these economies and greater focus on employee benefits is

43、what drives higher cancellation rates amongst those younger and middle aged consumers.Developed markets cancellation driven by costs and ageThe majority of cancellations in developed markets are linked to affordability and a reduction in customer needs.Post the global financial crisis,real incomes i

44、n developed markets have fallen,making life cover less affordable.As we saw in Theme 1,life insurance penetration also declines as customers age and their need for debt management and family financial security protection decline.The adviser and retention issuesThe previous theme highlighted the impo

45、rtance of the adviser in the sales process.Research also suggests that advisers are critical in the cancellation process.Indeed,consumer feedback suggests that the adviser is nearly as influential for cancellations as for sales with 11%citing the adviser as the primary reason for a cancellation comp

46、ared to 12%for sales.This percentage rises to 12%across emerging markets and to 15%in specific countries.NMG persistency studies across a range of markets support these findings,revealing adviser driven lapsation spikes across the range of advice channels.Lapses in intermediated channels typically f

47、ollow indemnity commission periods often an increase in year three.In guided models such as outbound telemarketing,lapses are most likely to spike in year one as consumers reflect on their remote purchase.Figure 5:Reasons for cancelling in Developed and Emerging Markets Developed Markets Emerging Ma

48、rkets Reduced Need Affordability Replacement Substitute Adviser 10 ReMark International NMG Consulting.All rights reserved.This graphic models the propensity to lapse and buy for the following segments:Age(30,30-45,45-60,60),Lifestage(children at home,children left home,no children),Income USD p.a.(

49、31K)and Home Ownership(rent,own,mortgage)Increasing Propensity to BuyIncreasing Propensity to LapseAgeLife StageIncomeHome OwnershipThis age segment has the best lapse profile and is more attractive on an integrated basis considering propensity to buy and lapseThis age segment has the worst lapse pr

50、ofile and is less attractive on an integrated basis considering propensity to buy and lapseHow to manage retention do it before purchaseMany intermediated insurers have attempted to reduce lapsation by altering adviser behaviour through more effective incentives and to develop better product structu

51、res,segmentation and positioning than the competition.On the consumer side,persistency marketing tends to focus on reasserting the value of life cover despite statistics that suggest a significant segment of consumers cannot be turned.NMG research suggests the best but as yet largely overlooked appr

52、oach to persistency management is to consider consumer cancellation behaviours before the sale.Today,the right tools,big data analysis and smart consumer insights can help insurers avoid the customers most likely to lapse after purchase.Key Finding Manage persistency before you buy the customerFigur

53、e 6 plots the attractiveness of different life insurance consumer segments in terms of their propensity to buy and lapse.The differences are profound.A better understanding of propensity to cancel could clearly reshape many aspects of life insurance distribution including marketing strategies,segmen

54、tation,adviser incentives and product economics.Figure 6:Propensity to buy and lapse within different demographic segments11New customer trends in the global life insurance industry-3%0%3%SudanNigeriaGhanaSaudi ArabiaCambodiaEqyptMalaysiaMexicoIndonesiaMyanmarBrazilAustraliaCanadaSouth AfricaUSAChin

55、aUKFranceJapanRussiaGermanyDeveloped Markets Emerging Markets Next Gen Markets 3.Demographics and unbundling are key risks to growth and profits Over the past decade insurers have benefited from three distinct demographic trends:Markets where population size was increasing saw increased premium grow

56、th.Markets where the demographic mix moved into age cohorts where life insurance penetration is higher.Markets where specific demographic segments underwent increasing penetration.Insurers have cited increasing population and an improved demographic mix as the strategic rationale for expansion into

57、high growth emerging economies,and this optimism has largely been justified even where insurer returns have fallen short of expectations.People change demographics turning against insurers?Changing demographics now mean that achieving real-term premium growth over the next few decades will be much m

58、ore challenging(Figure 7).Population growth trends will be significantly weaker in the largest emerging markets.Chinas demographic mix is expected to contribute less than 1%per annum to 2030.Across the seven major emerging markets in our study,growth from demographics (absolute and mix)is forecast a

59、t below 1%.Key Finding Growth will come from smaller,different placesWhile emerging market demographics look set to reduce the overall premium growth rate,expectations are that developed markets will deliver zero growth,bringing the overall rate of weighted premium growth down to just 1%.As a result

60、,insurers seeking the next demographic dividend need to target the next generation of smaller emerging markets in Africa,Central Asia and Latin America.Some insurers may not have the risk appetite,time horizon or capability to succeed in these markets.Figure 7:Impact of demographic segments on futur

61、e market growth(CAGR to 2030)“In developed markets,the primary risk is ensuring the next generation of life insurance buyers maintain current penetration levels given a changing regulatory and distribution landscape.Methodology:1.Population by age group projected using World Bank estimates by market

62、2.Penetration and average premium by age group estimated from ReMark Consumer Study(with no change over the projection period)3.Penetration and average premium for Next Gen Markets taken as average of Emerging Markets in study12 ReMark International NMG Consulting.All rights reserved.Risks to growth

63、 within the demographic mixThere are downside risks to current penetration levels within key demographic groups in both developed and emerging markets.In developed markets,the primary risk is ensuring the next generation of life insurance buyers maintain current penetration levels given a changing r

64、egulatory and distribution landscape.In many developed markets we see a muddled trade-off emerging.Regulators are trying to improve the quality of advice through tougher regulations but in doing so are reducing the number of advisers,and the number of consumers with access to appropriate insurance.T

65、he UK is one of the most extreme examples of this trend:The Retail Distribution Review(RDR)and the fines related to Payment Protection Insurance sales saw the number of qualified financial advisers fall 25%between 2010 and 2012.This number has declined further in 2013.The shift to Customer Agreed Re

66、muneration(part of the RDR)has encouraged advisers to focus on older clients with higher investable assets.As result,we estimate that over 30%of customers have lost access to advice from qualified financial advisers.The growth in non-advised and remote advice models has not offset the decline in the

67、 face-to-face market.Overall life insurance premiums are down by 5%over the same period and growth in term products those most relevant to younger age groups is falling faster than products designed for older segments.Whatever the merits of regulatory action focused on advice quality,the public poli

68、cy implications have been significant.In the UK,Canada and the USA,the research points to major drops in life insurance penetration rates amongst younger customer groups.This has significant financial security implications for these customers.It also raises public policy challenges including a misma

69、tch between debt and insurance levels in these demographics and the greater social welfare burden this underinsured demographic may place on already overburdened public purses.Risk to marginsChanges in the demographic mix in developed markets also create margin risk.In Theme 1 we noted that insuranc

70、e penetration falls as customers age.As a result we can expect the ageing of the huge baby boomer cohort to lead to higher industry lapse rates.These lapses may be priced into existing products but the Australian experience(where the lapse experience of annually renewable age-rated policies within e

71、lder segments has significantly exceeded industry expectations)suggests this may not be the case(Figure 8).Can bundled policies survive in emerging markets?In emerging markets the primary challenge to current penetration levels is linked to consumer protection regulation.At the moment most life insu

72、rance sales are integrated(bundled)with the sale of an investment product on a whole life basis.Figure 8:Australian lapse experience by demographic segment (NMG Australian RDM Study and NMG Estimates)“In emerging markets the primary challenge to current penetration levels is linked to consumer prote

73、ction regulation.2013201013%Lapse rate(all ages)50-6561-6512%13New customer trends in the global life insurance industryMany customers in our study say they hold a life insurance policy which pays out on death but in reality this policy pays out the value of their investment policy only.The product

74、is offered by a life insurance company but only a small percentage(if any)of their premiums actually go towards mortality or morbidity risk cover.As a result,customers in our study struggle to distinguish between the benefits of life insurance and the benefits of an investment product.The sum assure

75、d is thus a function of affordability rather than matched to a financial liability.This explains why customers in emerging markets typically buy on health fears rather than specific financial needs.With these bundled products,the life insurer has an advantage relative to a mutual fund platform becau

76、se they can offer indemnity commission to advisers.In some markets this advantage is supplemented by tax efficiency.Over time this advantage could be eroded as regulators in emerging markets embrace customer-centric product regulation such as banning commissions on savings products,reducing tax adva

77、ntages for life insurance investment products and enforcing greater transparency between the investment and life insurance components of the product.Key Finding Emerging market insurers must prepare for the impact of unbundlingThe unbundling of life and investment products will have significant impa

78、cts.While commission payments on pure life insurance products will stay,premiums are likely to be much lower than for savings products.At these product margins,it will be difficult for companies to sustain the current life insurer distribution networks which are essential to access mass and mass-aff

79、luent customers.This creates two challenges a reduction in customer penetration across a number of demographic segments and persistency challenges for the in-force bundled books.Crowding out by the welfare state?A secondary challenge to future life insurance growth is the increasing impact of the we

80、lfare state in healthcare and pension provision.Customers in emerging markets cite fear of health and fear of accident as key reasons for purchasing life cover.These motivations are likely to moderate as government healthcare provision increases.This view is supported by the strong inverse correlati

81、on in developed markets between the level of government spending and the penetration of life insurance(Figure 9).While emerging market challenges are less immediate than those in developed markets,providers may be too complacent if they assume that historic rates will continue.Figure 9:Inverse corre

82、lation between welfare spending and lifeinsurance penetration in Western MarketsIncreasing Public Expenditure on Healthcare(%of GDP)Life Insurance Risk Premium Per CapitaAUSUKCANUSAGERFRAFigure 9:Inverse correlation between welfare(health)spending and life insurance penetration in developed markets

83、14 ReMark International NMG Consulting.All rights reserved.HistoricCurrentFutureCustomer does not conduct additional researchCustomer investigates other sources of information before purchasingFriendInternet ComparisonFinancial ForumSocial NetworkingEmployerNewspaperRetailerSources of Information in

84、 the Future4.Look beyond the channels to see big changes in buying behaviour Channel structures background and equilibrium As life insurance markets develop they typically form distinct channel structures:Direct channels typically involve banks and other affinity groups selling via outbound telemark

85、eting(remote)and direct mail(non-advised).(For the purposes of this paper we use remote sales and non-advised sales rather than the term direct because direct can mean non-advised or vertically integrated provider sales).Advised channels are initially dominated by direct provider sales comprised of

86、semi-professional life insurance agents selling on a face-to-face basis.Over time this channel professionalises and top performing agents form an independent intermediary sales channel.In each market the industry closely monitors the mix between these four distribution channels.In the early stages o

87、f development,this channel mix can change rapidly as channels develop at different speeds.However,in most markets an equilibrium is reached with the ultimate mix dependent on the market structure and regulatory environment.Perceived equilibrium can hide customer behaviourResearch suggests that this

88、channel equilibrium has made it difficult for insurers to observe big changes in customer behaviour.In the past the buying process was a single customer interaction:the customer learned about the product and purchased the product in the same meeting or phone call.Figure 10:Consumer research activity

89、15New customer trends in the global life insurance industryHowever the research now defines four buying phases:Consumer research customers review a range of sources to better clarify needs and understand more about the price,features and benefits of the available products.Triggers customer-specific

90、reasons for life insurance purchase.Lead generation industry-led triggers for life insurance purchase.Purchase the channel the customer uses to purchase life insurance.Key Finding Buying behaviour is changing By breaking down the buying process into these four sections,we can identify five global bu

91、yer behaviour themes:1.More customers are researching products before they buy.As a result,customers are more aware of products choices and prices (Figure 10).2.Customers are increasingly involved in the lead generation process.The industry must invest in above-the-line marketing to complement datab

92、ase marketing.3.Lead generation is increasingly separate from purchase.Customer acquisition channels are not necessarily the same as the purchase channel.4.Customers increasingly want to interact via digital channels during the research and lead generation phases(Figure 11).5.Many customers want imm

93、ediate and transactional advice better suited to lower cost and more flexible remote advice models than traditional adviser channels (Figure 12).Watch these five changes but ignore these mythsBefore responding to these five buyer behaviour changes it is important to dispel some existing views which

94、are not supported by customer or adviser research:Increasing financial literacy is not yet encouraging more customers to buy protection via execution-only channels.Customers are keen to research products alone but the vast majority want advice at the point-of-purchase(Figure 5).The execution-only ch

95、annel will grow but remain niche.The growth of digital does not signal the death of traditional marketing channels such as TV,print,phone or mail.While online is the preferred medium for research,lead generation requires a multi-channel approach and online purchase does not meet customer demand for

96、bespoke advice at the point-of-purchase.Figure 11:Preferred lead generation channels current and futureCurrent FutureOnlineMailTVPhoneEmailPrint16 ReMark International NMG Consulting.All rights reserved.Social media is not yet a sales channel.Customers are using social media to assess products and b

97、rands but are unlikely to complete a purchase on social platforms.Even the small number of younger customers willing to transact via social media want to click through to the provider website rather than complete a purchase via social media.In short,digital strategies are empowering customers for re

98、search and they are integrating with traditional trigger channels.They are not yet a major purchasing channel.Key Finding Customers want to meet insurers as well as advisersThe key takeaway from the customer themes identified above is that customers want to interact with insurers as well as advisers

99、.Face-to-face advisers cannot now meet consumer expectations around product research.There is also a growing segment of consumers who want remote advice.The days when customers dealt with an adviser and the insurer was several steps removed are now over.Even intermediated insurers should be maintain

100、ing ongoing direct contact with customers updating contact details,monitoring payments and articulating price or benefit changes at the bare minimum.As customers start to migrate from face-to-face to remote advice models and existing advisers target a smaller number of more affluent clients,the insu

101、rers themselves may be best placed to deliver the scalable remote models that customers want.01020304050Embedded RelationshipComplexTransactionalSimple TransactionalLight TouchSource:NMG Consumer Study on future Advice Models in the UK27%16%14%43%Figure 12:Consumer demand for transactional advice(NM

102、G Future Advice Models)17New customer trends in the global life insurance industry5.What do these trends mean for your insurance business?Responding to the themes addressed above presents different challenges for the four different categories of industry participants:agency insurers,intermediated in

103、surers,banks and direct specialists.Agency insurersBased on this research,agency insurers with successful direct sales channels and a focus on emerging markets remain in a relatively strong position.They have benefited from demographic and economic growth,and while unbundling will have an effect,it

104、will take time to do so.As agency insurers own the value chain they are also better able to respond to unbundling and changing customer buying behaviour as they dont face the challenge of managing an intermediary relationship.They may also have the capability to reap the demographic dividend from th

105、e next generation of emerging markets.Intermediated insurersIntermediated insurers are typically weighted to developed markets and face the biggest strategic challenges.The decline in intermediary penetration as a result of advice regulation is already very real and intermediated insurers face big p

106、ersistency issues as the baby boomer cohort ages.Intermediated insurers also appear likely to have the most difficulty adapting to the changing customer behaviours discussed in this paper.For these businesses,meeting the research needs of clients is an additional cost with limited impact on sales.Ad

107、apting lead generation and purchase strategies to better suit modern customers may create conflicts with their intermediary partners.On a more positive note,there are strategies that can help intermediated insurers manage these challenges.Some include:Developing data-driven capabilities to allow mor

108、e sophisticated customer management around sales and persistency.This could support lead generation activities by intermediaries and improve the persistency of intermediary sales.Developing remote advice models to attract the next generation of life insurance buyers.This channel is a growth segment

109、which has limited conflict with their face-to-face intermediary franchise.The next few years are likely to reveal which intermediated insurers have the expertise,capital and value chain capabilities to address these challenges and compete with the emerging specialist players.BanksThe outlook for ban

110、ks is uncertain.Their customer franchise puts them in a unique position to adapt to new customer trends across emerging and developed markets.They have the ability to meet specific client life insurance needs at lower acquisition costs and with better risk selection than competing models.However,the

111、ir existing remote advice models have focused on top-line revenues and they now face regulatory pressure particularly in developed markets.Banks should be testing new models that help them manage customer equity such as:looking at propensity modelling around purchase and cancellation,upgrading chann

112、el strategy to match new buyer behaviour models,and research triggers,lead generation and purchase motivations.“The outlook for banks is uncertain their existing remote advice models have focused on top-line revenues and they now face regulatory pressure particularly in developed markets.18 ReMark I

113、nternational NMG Consulting.All rights reserved.Direct SpecialistsThe direct specialists who operate remote advice and non-advised models are strategically well-positioned as advice regulation forces advice upmarket and customers seek more flexible engagement models.First movers using this business

114、model have captured high returns,especially where they have been able to aggressively squeeze other parts of the value chain.However,short-term lapses continue to be an issue and they need to do more work to integrate propensity modelling across sales and cancellations.Competitive intensity in this

115、segment is increasing and will increase further as mainstream insurers(with big cheque books)enter their space.We have seen that channel preferences are changing and future winners will be those who are most effective at integrating digital channels into the lead generation process.19New customer tr

116、ends in the global life insurance industryResearch PartnersReMark is a world leader in alternative and direct distribution of insurance products with a single focus maximum value creation for our business partners and their clients.For more than 30 years,in 40 countries and 21 languages,we have been

117、 turning that strategic expertise into customised direct distribution programs for the worlds most innovative and ambitious financial services organisations.By constantly refining lessons learned from decades of global industry experience,we are an active participant in reshaping the way insurance p

118、roducts and services are developed and distributed,while generating outstanding returns and lasting competitive advantage for clients.Operating business models from B2B,B2B2C and D2C,we offer marketing,product and technology solutions throughout the value chain,in a diverse range of market segments

119、including Bancassurance,traditional Life&Health,Takaful Banking and Affinity groups.With a simple philosophy grounded in partnership,we actively invest in all of our programmes.This unique commitment delivers more effective marketing outcomes and,together with our knowledge transfer process,guarante

120、es clients access to the best practices and competitive advantage available in the world.ReMarks customer-driven marketing culture informs all we do,to maximise the lifetime value of your customers in an era of demographic change and digital disruption.ReMark is part of the SCOR Group,one of the wor

121、lds foremost reinsurance groups.Shape your thinking on the decisions that matter.Our specialist focus,global insights,programmes and unique network give us the inside track in insurance and investment markets.We translate insights into opportunities.NMG Consulting is the leading multinational insura

122、nce and wealth management consultancy,integrating consulting,insights and analytics.We provide strategy and management consulting,insights programmes and actuarial services to financial institutions including banks,insurers,reinsurers and fund managers.NMGs evidence-based insights programmes carry o

123、ut interviews with industry-leading experts,top clients and intermediaries as a basis to analyse industry trends,competitive positioning and capability.Established programmes exist in wealth management,life insurance,healthcare and reinsurance across North America,Latin America,the UK and Europe,Asi

124、a-Pacific,South Africa and the Middle East.Our Insight Reports are published annually,drawing on our insights programmes,analytics and consulting experience,to help distributors to make informed decisions on provider usage and demonstrate our consulting credentials to providers.NMG Consulting is a p

125、art of the NMG Group,an independent,well-established global financial services business with approximately 800 employees.The NMG Groups core business is the provision of consulting,insights programmes,employee benefits and advisory services to insurance and investment communities globally.The NMG Group also holds a number of strategic shareholdings in several companies within the financial services sector.Stephen CollinsCEO ReMark InternationalMark PrichardCEO NMG Consulting19New customer trends in the global life insurance industry