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18

and must instead understand and embrace them,

and then learn to harness them.

Using Predictive Moments

Deciding to buy life insurance involves a highly

uncomfortable moment: acknowledgment of one’s

own mortality. People do not like to think about

death—whether their own or of someone they love.

This creates a strong emotional barrier to accepting

the need and then making the purchase.

Behavioral science research has determined several

strategies life insurers can utilize to

harness a sales prospect’s emotions

both ethically and effectively. One

is to use messaging that evokes the

emotions that drive consideration and

purchase. However, in digital channels

it can be hard to successfully evoke

the intensity of emotional response

needed. In addition, research has

shown that fear messages, although

sometimes effective, can backfire.

An underutilized approach involves

what we call “predictive moments,”

when the risk context creates the

emotional reaction that makes

insurance more appealing and sparks

a purchase. Insurers therefore need

only to respond to these emotions rather than evoke

them.

Reinsurance Group of America Inc. behavioral

science research has found that people who have

relevant life events are more receptive to life

insurance, even if the event does not change their

underlying risk.

For example, people who recently suffered a

bereavement are more likely to purchase a new

policy or additional cover, even if their personal risk

level has not changed.

Natural disasters or newsworthy major accidents

are also occasions when people become more

emotionally aware of mortality risk. COVID-19, for

example, initially generated a spike in life insurance

sales, especially in the U.S., as the disease’s high

mortality rates before the development of vaccines

made life risk more visible and visceral.

Approaching customers when they are the most

receptive is not a new concept in life insurance.

Until the early 1970s, insurers had kiosks in

airport departure lounges so travelers could make

an impulse purchase. The underlying concept was

that feelings of loss and risk were already there for

travelers, and the buy could soothe those feelings.

(Sales fell as airline safety records improved.)

Embedding Life Insurance

For today’s insurers, the key is understanding

when predictive moments occur and developing

messages around them so an emotional connection

and context are created and the person can feel

safe and acknowledged while

experiencing and discussing

those emotions.

“Emotions are

One way to expand the digital

fundamental to the

reach of a predictive moments

strategy is by embedding

human condition,

appropriate messaging into sales

and no matter how

connected with life-cycle events

that can prompt awareness of a

risky some feelings

protection need. This has long

might be, they are

been an effective strategy for face-

to-face sales and should work in

vital to the future of

the digital space as well.

protection sales.”

Good digital messaging

during a mortgage process, for

example, can elicit comforting

feelings around buying more life

cover.

Another example could be messaging to the

millions of immigrants worldwide who send

remittances to their families back home. Could

comforting messages around protecting those

families should something happen to the remitter be

built into the digital money transfer process?

What is central is that emotions cannot,

and should not, be excised from the protection

purchase process. Emotions are fundamental to

the human condition, and no matter how risky

some feelings might be, they are vital to the future

of protection sales. The key, however, is utilizing

emotions positively and ethically to develop

messaging that works without needing to resort to

panic or dread.

In addition, by not ignoring a customer’s

discomfort with facing their own mortality, insurers

can help customers transform their risky feelings into

the steps that will protect their loved ones’ futures.

Emotions: Let’s not be afraid of them.

Matt Battersby

Reinsurance Group of America Inc.

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Behavioral Science

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