Part Three: Why Hybrid Distribution is the Right Choice for Fraternal Carriers
Part three of our series exploring the need for the Hybrid Distribution of life insurance products.
In part one of this series, we outlined a new approach to life insurance distribution that embraces technology to modernize the user experience, reduce costs, and process new business faster and more efficiently. We coined the term “Hybrid Distribution” to refer to a distribution model that leverages advanced technology and data-processing tools to provide a seamless, streamlined experience for consumers, advisors, and carriers.
With Hybrid Distribution, life insurance consumers are empowered to research products at their own pace, whether on the couch watching TV or in the Uber ride to the airport. Advisors can easily monitor each applicant’s journey in real-time, getting alerts when important steps are completed or if a client’s behavior indicates they need additional support. Carriers can instantly check the status of each applicant, a level of transparency that’s currently unprecedented in the life insurance industry.
Hybrid Distribution also produces demographic and behavioral insights into customers and what they care about so carriers can position products as the solution to their needs. Part two explores the power of data to target consumers who are most likely to need your services and bring them to your digital front door.
Today, in our third installment, we’re taking a closer look at how fraternal carriers can benefit from Hybrid Distribution.
For many years, the largest life insurance carriers have been undergoing a massive modernization effort known as “digital transformation.” Only the largest insurance carriers could afford to hire the army of consultants and developers required to make it happen.
Smaller insurers such as fraternal carriers have long assumed that digital transformation is out of reach for them financially, but it doesn’t have to be an all-or-nothing proposition.
Fraternal carriers have a unique bond with their members that traditional insurance carriers don’t have. As a result, fraternals can use this customer knowledge as an advantage as they reimagine the purchasing journey for today’s consumers.
Teachers Life is a member-driven fraternal insurer with a social mission to improve the health and wellbeing of its members and the communities in which they live. This defining mission has the team at Teachers Life re-imagining member benefits – and the ways they are delivered – for the modern consumer.
1891 Financial Life, formerly known as the National Catholic Society of Foresters or NCSF, is a community-based organization focused on helping its members plan for the future while also making a difference in their communities. Sales from its financial services products fund the social, educational, and volunteer programs that respond to community needs.
Both of these not-for-profit organizations needed to modernize the consumer experience, increase sales, and reduce costs as they continue to grow, support their members, and pursue their missions. Both chose to partner with Breathe Life, a best-of-breed InsurTech, to address their unique needs and budgets.
Using Breathe Life, fraternal carrier clients have increased their policy sales by as much as 90%. They’ve also been able to decrease their cost of acquisition by more than 30%.
Hybrid Distribution is the way life insurance will be bought and sold today and into the future – and it’s not just for the big carriers. Working with an InsurTech that specializes in life insurance, carriers of all sizes can finally embrace the digital revolution and meet the evolving needs of advisors and consumers.
To learn more, please join our Webinar on “How Fraternals are Handling Distribution in This New Normal” and download our Hybrid Distribution eBook.