New Aite Group research shows that electronic payment methods accounted for over 80% of total life insurance GDV in 2016.
Boston, April 21, 2017 — According to Aite Group’s latest report, U.S. Life Insurance: How Consumers Pay Their Bills, encouraging ACH or recurring payments via debit or credit card has become a top priority for life insurers. However, many carriers have yet to offer payment options to fit different generational needs.
“The wide span of generations that currently own life insurance has created a need to support payment preferences from money orders to mobile payments,” says Aite Group senior analyst Samantha Chow. “Carriers need to streamline the payment process, offer multiple easy-to-use methods, and incentivize consumers to use certain methods, or they will continue to suffer high lapse,” she says.
Based on a Q3 2016 Aite Group survey of 2,429 U.S. consumers, this Impact Report sizes the life insurance bill gross dollar volume in 2016 by payment methods and channels, and uncovers insights into how all generations conduct bill payment activities.
About Aite Group:
Aite Group is a global research and advisory firm delivering comprehensive, actionable advice on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, insurance, wealth management, and the capital markets, we guide financial institutions, technology providers, and consulting firms worldwide. We partner with our clients, revealing their blind spots and delivering insights to make their businesses smarter and stronger. Visit us on the web and connect with us on Twitter and LinkedIn.