How can Insurers provide better service to their female clients?
Despite women’s rising workforce participation and escalating income, it appears that American women still have major gaps and unmet needs when it comes to achieving comfort and confidence with money. Whether by circumstance or by choice, women are finding themselves in roles where they must be responsible for long-term financial needs and security.
Female financial services clients are a substantial and overlooked segment of the market despite controlling a significant portion of the world’s wealth. A shift in demographics of women clients, including the significant wave of next-gen millennial clients, and the exponential growth in technological innovations across society and within the financial services industry present challenges and opportunities for insurers and the financial services industry. Surveys of affluent women show that they are dissatisfied with the services they receive from an advisor or the financial services industry as a whole.
In my report, Women, Money and Realizing Financial Goals, I examine women’s attitudes and aspirations for making financial decisions. Given the size and diversity of female clients across the generations in terms of behavioral characteristics, financial goals, technological aptitude, and product and service needs, insurers should increase their understanding of and investment in this particular section of the market, including thoughtful client segmentation, marketing efforts, and application of technology.
According to LIMRA, the number of women who are the sole or primary earner for their family with a child under the age of 18 continues to increase. However, their amount of life insurance coverage averages only 69% of men’s. Additionally, women with high personal incomes (more than $100,000) are less likely to have individual life insurance or group life insurance than men with similar personal incomes.
As insurance professionals, we should endeavor to better understand and better respond to the financial needs of women. The relationship between insurers and their female clients has improved, but there is more progress to be made in meeting women’s financial goals and needs. What plans do you have in place to better reach women insurance buyers?