Customers are at the centre of everything we do at MLC Life Insurance.
The typical life insurance customer is between 45 and 55 years of age. Generally, they would have purchased their life insurance through financial advisers as retail products or have their insurance through superannuation as a group policy.
Since the removal of automatic cover for members under age 25 through changes within the Protecting Your Super package and Putting Members Interests First legislation, fewer people under 25 have insurance who would have otherwise accessed this through super.
The future life insurance customer is under 25, has different insurance needs and will need to be engaged in other ways.
Competition question: Please consider how life insurers will need to adapt various aspects of their offering to meet the needs of younger generations (under 25), now and in the future?
Some things to consider are:
- Product design. What products may be most effective for this age group? Products sold by life insurance companies today generally include:
- Life cover: pays a lump sum benefit if the life insured dies.
- Total and permanent disability (TPD): provides a benefit if the life insured becomes totally and permanently disabled.
- Critical illness: provides a lump sum benefit if the life insured suffers a specified critical illness.
- Income protection: provides a monthly benefit if the insured can’t work due to illness or injury.
- Product distribution method. Provide reasons why the suggested distribution method would be effective.
- Underwriting. Consider the types of questions asked to appropriately price the risks being written. Please give examples.
- Pricing. Given the target market, what factors would you consider when pricing the product?
