Direct life insurer Frank.net’s research shows that 70% of Generation Xers (age 17 to 37 years old) indicate that they would use the internet to purchase life insurance and would not consider going through a traditional insurance channel.
The research found that the most effective means of capturing a share of the Generation X market is through technology and service delivery platforms aligned to these channels and not through a broker network.
This is according to Lenerd Louw, CEO of Frank.net who says that the Generation X market is not traditionally serviced by broker networks as they are a technologically savvy generation and have access to information to make their own informed decisions.
“Market statistics indicate that smaller niche players are taking market share from traditional players in the market,” says Louw. “Traditional insurers are losing dominance in the personal insurance space,” Louw adds. “We see this with the emergence of a number of direct players and the migration of banks and traditional insurers offering life insurance through direct channels.”
He says that larger players in the life insurance space are now setting up direct businesses in order capture the market that are not traditionally serviced by brokers, which has turned the industry on-its-head. “Life insurance is no longer just sold, it is also bought, with consumers investigating their options and making their own decisions,” he adds.
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