Kingston, Ont.-based Empire Life Insurance Co. announced the launch of two simplified life insurance products on Monday, as well as a new online sales platform that enables clients to buy the products directly from the insurer.
The new products, Simplified 10 and Simplified 20 term life insurance, represent Empire Life’s first simplified issue insurance offerings, and the company’s first foray into direct-to-consumer Internet insurance sales.
The new products and sales channel aim to engage a segment of consumers who are currently not being effectively served by the life insurance industry, according to Sean Kilburn, senior vice president, retail with Empire Life.
“It was about trying to reach the unmet needs of under-protected middle-income Canadian families,” Kilburn says. “This is opening up a whole new segment of the market for us.”
Kilburn pointed to recent research from Windsor, Conn.-based global insurance association LIMRA International Inc., showing that 18% of consumers would rather not meet with an advisor as part of the insurance purchasing process.
“Consumers’ buying preferences are changing in certain areas,” Kilburn says. “Our challenge has been, for consumers who don’t want to have us come into their home or their office, how do we engage them?”
Millennials, in particular, haven’t embraced traditional sales channels, Kilburn notes. “They seem to be more wired to deal with things in a digital world,” he says. “How do we engage that group, so they’re protected?”
Consumers who are eligible will be able to apply for and purchase the new Simplified 10 and Simplified 20 term life insurance products through empirelife.ca, or through the websites of participating advisors. Specifically, advisors will be able to add a ‘Buy Now’ button to their websites, which will link to empirelife.ca and allow clients to complete an online application for the simplified insurance products. Clients will have the option of contacting the advisor for advice before, during or after the application process, if they choose to do so.
Although many of the consumers who use the online channel won’t likely opt for advice right away, Kilburn says, he expects that many of those individuals will decide that they need advice down the road.
“Our goal is, if we can build a simple offering that can engage consumers today,” he says, “then as their insurance needs grow, as their situation becomes more complex … we can then transition them to an advisor so they can then get that advice.”
Adds Kilburn: “At least it starts them on a road to insurance ownership.”