The Future of Insurance

A lot of experts have their own outlook on what the future would look like five or ten years from now. Every year, certain reviews and statistics are being presented to help businesses prepare for what their future would be not only on insurance companies but also to other industries. With simpler financial needs and a reliance on the online environment to conduct a great deal of their business, the potential is ripe for insurance companies and agents to capture this market.

  1. Future Customers

Future customers will rely more on the internet, most probably Google to research and learn more about a company’s profile before making a purchase. They are less likely to talk to agents anymore since the people in the future are predicted to be busier than ever and would only want the product and the cost.

In order for their agents to take advantage of this possibility, insurance companies like Axis Capital, with their group of insurance and reinsurance companies from its main office in Bermuda to branches in Singapore, Australia, the United States and United Kingdom has set up trainings and online accounts for them to interact with these growing kind of customers. Now there are field agents and virtual agents as well which can take calls and inquiries in as far as Guam or Jakarta, Indonesia.

  1. Future Products

Since future customers are expected to have a mindset of being “too busy to die”, life plans’ policies are also expected to be simplified, probably downplaying the role of financial advisers.

Also, as many are filing complaints on the incapability of a premium of a specific home insurance to include flood or catastrophic events without corresponding warning, casualty insurance would probably be one of the highest in-demand products. Protection will be the driving force behind most products, as customers will not be interested in learning about cash value accumulation, tax advantages, or maturity dates. What customers will care about is knowing that in the event of a catastrophe, his or her family would receive a specific amount of money.

  1. Future Underwriters

The future may include a hybrid type of underwriter, perhaps a piece of technology accompanied by human review. More companies are making a push towards speedier underwriting and customers love the idea. Health care reform, which is relying heavily on electronic components, may assist in this process by pushing for one big network of up-to-date health records. In the further future we can look forward to technology creating a way for underwriting computers to instantly know where the individual’s health stands, where it’s going and rate him accordingly.

Importance of Insurance for Retirees

We have so many things to worry about when we get older. As time flies by quickly, the pressure of keeping up to enjoy the future gets harder and harder. Some of us even tend to live by day, not thinking much of the future because what we have in the present seems hard enough to carry.

The question thrown: Why do I need insurance when I retire?

The answer is simple: do you have any loved ones? Of course you do.

Now, let us review to the basics and details of it.

Axis Capital, with a group of insurance and reinsurance companies based in Bermuda and offices in Australia, the United Kingdom, Singapore and over 10 states in the United States emphasizes the importance of insurance for retirees, even when you think you don’t need it anymore.

1.Source of Income

We all know that even if you retire, you would still have to take care of your own needs. You don’t want to depend entirely on your children, do you? Some children and grandchildren may be the ones to depend on you even if you retire. And of course, you can’t just turn your back from them. Life insurance can provide funds that you need.

2.Something to Leave Behind

We cannot deny that we will all be gone from this world. Do you have something to leave behind for your children or their education?

Many retirees from close family-knit cities like Jakarta, Indonesia and Singapore turn to insurance in fear that their children would not be able to survive after they pass away. Life insurance is mostly important children with special needs as well to get them by when you are already gone.

3.You have a pension that dies with you.

If you have a pension with no survivorship option, how do you replace that income stream for your spouse? Once again, life insurance can replace the lost pension income by creating the assets that can be turned into an income stream.

4.Pay your debts

During the times that you are still working and active, there may been debts that you were not able to pay. According to some reports, most retirees have installment and education debts which remain unpaid. Some also have vehicle loans. Many retirees still have mortgage debt. You wouldn’t want to face files of complaints, would you? Life insurance can make sure these debts are paid off at the debtor’s death

5.You’d like to leave a legacy.

Life insurance is a very efficient tool to use for estate planning and the equalization of assets being left to heirs and for charitable planning. A small premium for life insurance can create the money at death to accomplish these goals.

Another option is to get insurance while you are still young. Be smart enough and enjoy a tax-free income stream in retirement from the cash-value of your policy.