The Life Insurance Customer Journey in Latin America

April 2024

So much has been said about the customer journey, a kind of step-by-step relationship between the customer and the insurer. When we consider life and pension products, this relationship tends to be long-term and, during this journey, many changes can happen in the customer's life that will require constant support to recalibrate the solutions presented according to the new status quo.

There is much more to a sale than issuing a policy or contract. We have the materialization of a promise that transcends the company-consumer relationship.

Consumers are increasingly looking to make their life insurance purchases tangible and take advantage of the benefits of their policies while they are still alive. Considering this scenario, numerous benefits linked to well-being, physical/mental health and leisure have been added to the commoditized products of our industry in many parts of the world, including Latin America.

Considering that many insurers in Latin America are seeking to strengthen the bond and relationship with their policyholders in a way that transcends the pure bureaucratic moment of renewal, we asked Eduardo Silva, general director of GNP Seguros in Mexico, what GNP considers most important in establishing a long-term relationship with its policyholders.

"At GNP Seguros, we live by the premise ‘the client at the center,’ and we are convinced that the long-term relationship with each of our clients has one key factor: trust,” said Silva. “To this end, we have developed processes and services that allow us to support the client with professional and personalized advice, which enables us to determine the coverage that best suits their needs, clearly establishing the scope of the product contracted,” he added. “This trust is also strengthened by the provision of after-sales service through close, empathetic, timely and transparent support that we offer as one of the most reliable and experienced companies in Mexico."

Today's modern consumers seek consistent information before making the decision to buy personal or family protection, even if this requires in-depth research through various sources, including online. In fact, based on LIMRA's consumer research, Latin America Consumer Pulse 2022, which surveyed consumers in Mexico, Chile, Colombia and Peru, a majority of consumers consider the internet their primary source for gathering information on life insurance.

The complement to this information is even more interesting given that 57 percent responded that even after researching online, they would prefer to speak to a professional to purchase a life insurance policy.

This demonstrates a curious and interesting combination at the beginning of the customer journey that challenges some pre-established concepts. Apparently, since most consumers prefer to proceed with the purchase through human contact, there is a risk of overlooking the importance of digital communication and interaction opportunities with consumers. What we’ve learned is that at the prospecting stage, it’s important to offer education about products, coverage and related benefits. In addition, it’s important to establish a link during this stage between the consumer and the team responsible for helping the consumer define the best financial protection solutions.

But that's just the beginning of the journey. Having a well-defined strategy can help new customers persist throughout this course.

Helder Molina, CEO of MAG Seguros from Brazil, understands that the customer journey is fundamental for the insurance company.

"Here at MAG Seguros, following the customer journey through its different phases is considered vital for the perpetuation of our business. This allows us to continuously adapt to the needs of our more than 6 million customers, resulting in increasingly personalized products and services,” said Molina. “It's no coincidence that we recently created a project called ‘Fábrica de CX’ (Customer Experience Factory), a nucleus that, based on data analysis and customer relationship management (CRM) actions, proposes and executes actions that strengthen the trust with our customers and our brokers for the long term and in a multichannel way, materializing the value proposition of our service.

This effort has already resulted in an increase in our net promoter score (NPS) over the last few years, and we are continuing on this path, believing that it is strategic for the business, positively impacting retention and the perception of our brand's value and purpose.”

This perspective is of fundamental importance, especially when 36 percent of Brazilian consumers who already have some kind of life insurance coverage  believe that they don't have enough coverage for their needs, according to Global Consumer Pulse 2022. This same survey shows that young consumers, aged between 25 and 34, are the ones who have more life insurance (Figure 2). This could support hybrid strategies for the customer journey, considering human interaction toward information, as well as online connections with this young audience.

In another section of the same survey, the results reveal that women are more concerned about the future and the financial security of their dependents — 55 percent of women compared to 43 percent of men. Assessing the alignment of corporate strategies with the dynamic reality of our industry is imperative for insurers, considering the various touchpoints with consumers throughout their journey.

Perhaps one of the biggest challenges facing the insurance market, and not just in Latin America, is the constant adaptation of the consumer journey strategy, vis-à-vis the transforming dynamics of life that demand even greater access to information and interaction in the digital realm. This approach, combined with a sales specialist, ensures steady progress toward achieving financial security and peace of mind for consumers. Is your organization ready to meet this demand?