Benefits Of Family Income Protection Insurance
It seems that families in the UK may finally be making income protection a top priority according to an Aviva insurance company survey.
The study found that compared with an average of 36 per cent, UK couples with at least two children are more likely to have family income protection cover, with 45 per cent of them purchasing protection.
Since August 2012, single UK parents have increased their cover to 21 per cent. Increasing incomes since 2011 and the ability to save more money may be responsible for this positive trend.
Family Income Protection Trends
Aviva found that private health insurance is most popular with couples who plan to have children. Couples with at least two children are most likely to have critical illness policies while income protection is most popular with parents who have only one child.
Louise College, protection distribution director at Aviva, commented that the recent savings movement has positive implications for the future. She noted that despite restricted budgets, more families are establishing financial safety nets and these often include a family income protection policy.
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Insurance Firms Failing with Customer Data
Some life insurance policies can be established as family income protection plans, making regular pay-outs to beneficiaries over time rather than issuing a lump sum payout following the death of the insured. Though providers may offer convenient options, they could do even better if they used consumer data more effectively.
An IBM survey revealed that 84 per cent of the UK insurance companies surveyed did not consolidate customer data into one database.
The ability to offer personalized services is essential in the life insurance industry. Providers are seeking ways to market products more effectively to target audiences. Unfortunately, 54 per cent of the 50 companies participating in the IBM survey used at least six information technology systems each and stored records in multiple systems.
They are doing themselves a disservice by failing to integrate customer data. Integration would provide a single view of each customer, making it easier to weave communication channels together.
Thirty-eight per cent of the companies surveyed had no integration, with each broker or line or business using a different database. At only 24 per cent of the organizations was data generated by quote engines across mobile apps, websites, and call centres integrated.
Only four per cent of the companies surveyed claimed to capture and retain all customer transactions. The average amount of customer data retained was 64 per cent.
Detailed Survey Is Quite Revealing
According to the 2015 IBM survey of chief marketing officers, lack of data integration was noted as the main barrier to technology use for marketing improvement. Customers want to deal with companies that know them personally. This movement, driven by the retail sector, must be embraced by the insurance industry.
Of the respondents to the CMO survey that used basic spreadsheets and databases to collect, analyse, and manage customer data, 57 percent said they were performing poorly when it came to getting new customers or retaining existing ones. Nearly nine out of every ten were concerned that sales could be affected by a lack of integration of customer data.
At an insurance company, the information technology and marketing departments enable the organization to create consistent experiences for customers. They look at each customer holistically across life insurance and other lines of business. Without the right systems and tools in place, this is not possible.
The majority of companies surveyed are focusing on streamlining processes, placing this endeavour ahead of cost savings.
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Steve Case is a seasoned professional in the UK financial services and insurance industry, with over twenty years of experience. At Insurance Hero, Steve is known for his ability to simplify complex insurance topics, making them accessible to a broad audience. His focus on clear, practical advice and customer service excellence has established him as a respected leader in the field.
