This blueprint provides organizations with a structured approach to growing pre-need insurance business while addressing the key challenges and opportunities particular to the market and product.
Market Opportunity Analysis #
- Current market value (2022): $28.09 billion
- Projected market value (2030): $41.17 billion
- Target demographic: Age 50+ lower-income segment
- Key gap: Significant coverage opportunity in target demographic
Current Industry Challenges #
Process Inefficiencies #
- 74% paper applications
- 22% electronic applications
- 4% other methods (fax/email)
- Manual service and claims processing
- Low customer satisfaction due to payment delays
Business Constraints #
1. Low margin business model
2. Limited investment capacity
3. High transaction costs
4. Legacy system limitations
5. Aging customer demographic
6. Fragmented point-of-sale experience
Strategic Implementation Plan #
Phase 1: Technology Modernization #
1. Policy Administration System (PAS) Upgrade
- Implement modern PAS with API capabilities
- Ensure cloud and SaaS model compatibility
- Focus on scalability (capability to handle 1M+ policies)
- Leverage pre-built product foundations
2. Digital Infrastructure Development
- Deploy eApplication systems
- Create self-service portals
- Implement straight-through-processing
- Enable third-party integrations (USPS, LexisNexis, PeopleSoft, DocuSign, ACORD)
Phase 2: Process Optimization #
1. Sales Process Transformation
- Digitalize application process
- Streamline approval workflows
- Implement automated policy issuance
- Create branded portals for funeral home providers
2. Claims Processing Enhancement
- Automate claims processing
- Implement straight-through payment systems
- Reduce payment timeframes
- Enable digital documentation
Phase 3: Customer Experience Enhancement #
1. Digital Service Capabilities
- Deploy self-service portals
- Enable digital policy management
- Implement automated customer communications
- Provide real-time status updates
2. Funeral Home Provider Integration
- Create dedicated provider portals
- Enable commission management tools
- Implement automated claims payment
- Provide policy management capabilities
Key Success Metrics #
1. Operational Efficiency
- Reduction in manual processing
- Decreased transaction costs
- Improved processing times
- Reduced error rates
2. Business Growth
- New policy acquisition
- Market share growth
- Revenue increase
- Customer retention rates
3. Customer Satisfaction
- Reduced payment timeframes
- Improved service ratings
- Digital adoption rates
- Provider satisfaction scores
Risk Mitigation Strategies #
1. Digital Adoption
- Provide user-friendly interfaces
- Offer training and support
- Maintain alternative service channels
- Implement gradual transition periods
2. Implementation Risks
- Use pre-built foundations
- Phase implementation
- Conduct thorough testing
- Maintain legacy system backup
3. Cost Control
- Leverage SaaS models
- Implement automation
- Use scalable solutions
- Focus on operational efficiency
Continuous Improvement Plan #
1. Regular Performance Monitoring
- Track key metrics
- Analyze user feedback
- Monitor system performance
- Assess market changes
2. Iterative Enhancement
- Regular system updates
- Process optimization
- Feature enhancement
- User experience improvement
Critical Success Factors #
1. Technology
- Modern PAS implementation
- Digital infrastructure
- System integration
- Automation capabilities
2. Operations
- Process efficiency
- Cost control
- Scalability
- Quality control
3. Market Focus
- Customer experience
- Provider satisfaction
- Market responsiveness
- Competitive positioning
To learn more about how you can effectively grow your pre-need business check out this article.
