Partnerships Fuel Digital Distribution Success
Strategic partnerships help keep our finger on the pulse of the industry, enabling the creation of meaningful products and solutions that fulfill our purpose to make financial protection accessible to all.
The old adage, “insurance is sold, not bought,” remains true today. The insurance industry is trying to overcome this long-standing challenge by testing new ways to make life insurance offerings more attractive, more engaging, more conversational, and more relevant. Digital distribution strategies powered by mutually beneficial partnerships within an expanding insurance ecosystem may hold the key.
In 2021, RGA EMEA partnered with various digital distributors and insurtechs to execute a number of projects and conduct future-focused digital experimentation, both within the region and globally. These activities revealed the following lessons:
- Paid traffic is expensive and generates low return on investment. Therefore, insurers and insurtechs must find ways to attract organic traffic to their sites. Relevant content production and an understanding of what types of content and messaging drive conversions are essential, which is a key area of focus within RGAX EMEA’s digital distribution initiative Money for Them.
- User experience is fundamental to success. We’ve seen that making simple improvements to the customer journey can make a significant difference in conversion rates. One example of this, which we observed via Money for Them, is that repositioning the call-to-action button to ensure it is always visible across devices can improve conversion rates two-fold. Similarly, incorporating behavioral science to improve choice architecture within a digital experience can prove invaluable.
- Product design is important. Products need to be easy to understand to gain traction in the digital world. Additionally, the more emotive a product is – that is, the more people can connect to a product on an emotional level – the higher the conversions. For example, an RGAX insurtech partner launched its most successful product to date: a digitally distributed cancer coverage that is both easy to understand and easy to relate to – everyone knows someone who has suffered with cancer.
- People do not always realize how much or what type of cover they need. Needs analysis tools within the digital journey help customers make the decision to purchase. In Canada, RGA and RGAX partnered with an insurer and a digital life insurance advisor to successfully integrate a financial needs analysis tool within a digital journey, leading to improved conversions and greater consumer engagement than simple aggregator sites.
Partnerships such these are key to RGA gaining a deep understanding of what customers need and how they make decisions. They also help keep our finger on the pulse of the industry, enabling the creation of meaningful products and solutions that fulfill our purpose to make financial protection accessible to all.