The New Solutions Group, formed by Swiss Re in 2015, is collaborating with insurance company clients to improve the financial security of American households, especially in the tragic event a primary breadwinner dies.
A 2012 Swiss Re study showed the average American household would need an additional $380,000 in life insurance coverage to meet financial obligations following the loss of a breadwinner. Taking the U.S. as a whole, that's a $20 trillion "mortality protection gap" — a potentially huge problem for unprotected and under-protected families, and an opportunity for insurance and reinsurance companies that offer life insurance.
Working hand in hand with Swiss Re client managers, subject matter experts, and dedicated clients, the Swiss Re New Solutions Group is leveraging data, technology, and analytics to ensure more middle-income Americans get the life insurance they need.
Our team is tackling the protection gap challenge in three ways:
• The New Solutions Group is helping clients attract new life insurance customers. It is pursuing relationships with start-up companies who are coming up with innovative ideas to bring new customers to insurance company clients. We consult with Swiss Re clients to tailor their products and approaches to specific market segments, meeting the felt needs of targeted groups of people. In addition, Swiss Re provides key tools for attracting new customers, including consumer research insights, digital marketing strategies, the Launchpad Marketing Cloud, and behavioral economic trials to improve communication with customers.
• The New Solutions Group wants to simplify buying life insurance by providing faster, more efficient underwriting tools. Traditional medical testing can be invasive, slow, and costly. The group is seeking to speed up the process by building strong predictive analytics capabilities, and developing access to data sources from electronic medical records and information collected from wearables and other sensor products. This way, insurance companies can assess customer risk quickly and efficiently without medical testing, creating a seamless customer experience with far less hassle.
• The New Solutions Group is committed to helping clients build long-term relationships with loyal customers. Swiss Re has a long history of assisting clients in managing the economics of policy premiums to encourage retention, especially at the end of a 15-, 20-, or 30-year term product. Swiss Re can help insurance companies adjust their prices to retain these customers. The group is helping clients better communicate with customers about policy renewals and other retention programs.
The Swiss Re New Solutions Group and partners have so far sold almost 100,000 new life insurance policies. The goal is to sell a million life insurance policies by 2020. Behind each policy is an American family safeguarding itself against financial loss.
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