Is mass commoditization next for the life insurance business?

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Alibaba Seeks stake in Chinese Insurer. Google enters Auto Insurance Space. Is mass commoditization next for the life insurance business?

Data. It’s the next phase of the world. Everything will be driven by data and the use of data to target sales. Wherever you are. Even Pepsi is using GPS and real time consumption at locations to increase sales.  Alibaba and Google have identified that the use of data and the prospect of targeted sales is vibrant and real. Why shouldn’t it be? So many opportunities to target life changes done via internet, be it lifestyle changes, car or home purchases, new baby, death or sickness, all searches lead to changes and new opportunities.

The insurance industry has remained largely unchanged in spite of the technology and opportunities created by the internet. Startups ultimately get aggregated or purchased by old, stoic insurance companies – Progressive, E surance, EhealthInsurance and Geico have done impressive marketing and creates strong brands – only to be acquired and managed by larger traditional conglomerates. 

Can companies with years of legacy systems and structures that make them less than nimble. Interesting to see how these newer more nimble companies manage and succeed in the insurance space, Could life insurance be a true commodity?

P.S. Corporate Strategies provides Payroll and HR management tools too! Ask us how we outshine Paychex and ADP!

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