The opportunities in the retirement services market are immense, but life insurers must take time to understand consumers’ needs before diving in. Customers are increasingly demanding retirement advice and products that are relevant to their specific circumstances and preferences. Sophisticated segmentation—and the ability to translate this information into tailored responses—will play a critical role in your organization’s success.
A continuum of consumer needs and insurer responses
Accenture research suggests that the retirement services needs of customers generally fall into three categories:
- Simple needs requiring savings advice. These individuals recognize the need for savings and protection, but struggle to afford it. They need basic retirement products—and advice on managing their finances to create the room in their budgets to afford those products.
- Diverse needs requiring relevant advice. These individuals recognize the need to save and can afford to do so, but tend to be unwilling to pay for advice. Insurers must be able to provide tailored and branded services, or risk getting disintermediated by aggregation or online advice services.
- Complex needs requiring customized advice. These affluent individuals need investment advice and are willing to pay for it. Insurers that want to succeed in this mature market must be prepared to provide sophisticated and personalized retirement products and advice, and compete against some well-established brands in private banking and wealth management.
Next week, we’ll take a closer look at how life insurers can leverage digital technologies to create compelling customer experiences.
Visit this blog every week for interesting insights from the Accenture Global Retirement Services Survey. Read other posts in the series:
- Consumers wake up to retirement reality
- Anxiety over retirement savings soars
- Inadequate funds and information jeopardize retirement savings
- Life insurers: First stop or last resort for retirement services?
- Where’s Superman? Retirement worries may make heroes out of financial advisors
- How insurers can make a name in retirement services