Insurers with flexible retirement products that can be easily configured to suit different consumer needs will be one step ahead of their competitors. The ability to develop these products quickly and efficiently is a critical feature of the industry’s top performers.
A wide spectrum of service needs
Looking to strengthen relationships with certain groups, including the heirs of Baby Boomers in particular, members of the wealth management industry are developing tailored strategies. Wealth management firms have begun bundling services based on a consumer’s stage in life, expanding the portfolio offering to include cash management, debt management and insurance services. Life insurers take note.
For customers who are having a difficult time saving for retirement, insurers should focus on developing simple, cost-effective products. These consumers are seeking a certain degree of protection from market volatility and the freedom to switch between products with little or no penalty should their financial circumstances change or they realize they have bought the wrong product.
For “mass-affluent” customers who are able to save for retirement, but reluctant to pay for advice, insurers must get creative with their offerings. These consumers are typically looking for products that more closely meet their specific needs. They are also receptive to innovations, including annuities that take into account the paid-off portions of their mortgages, and impaired-life annuities for chronic illness or disability.
Join me next week for a discussion on why insurers should embrace customer-centric advice models for retirement services.
Visit this blog every week for interesting insights from the Accenture Global Retirement Services Survey. Read other posts in our “closing the advice gap” series: