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U.S. Life Insurance: How Consumers Pay Their Bills

U.S. Life Insurance: How Consumers Pay Their Bills

Electronic payment methods accounted for over 80% of total life insurance GDV in 2016.

Boston, April 20, 2017 – Encouraging ACH or recurring payments via debit or credit card has become a top priority for life insurers. Additionally, the wide span of generations that currently own life insurance has created a need to support payment preferences from money orders to mobile payments, yet many carriers do not offer payment options to fit generational needs. Carriers must streamline the payment process, offer multiple easy-to-use methods, incentivize consumers to use certain methods, and utilize these options as engagement strategies—or continue to suffer high lapse rates.

This report sizes the life insurance bill gross dollar volume in 2016 by payment methods and channels, and uncovers insights into how all generations—millennials, Generation Xers, baby boomers, and seniors—conduct bill payment activities, including one-time versus recurring payments. The analysis is based on a Q3 2016 Aite Group survey of 2,429 U.S. consumers.

This 35-page Impact Report contains 28 figures and five tables. Clients of Aite Group’s Life Insurance service can download this report, the corresponding charts, and the Executive Impact Deck.

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