Behavioral Science in Life Insurance Focus of New Study from Society of Actuaries Research Institute

Rhea-AI Summary

The Society of Actuaries (SOA) Research Institute and Reinsurance Group of America (NYSE:RGA) have released a new study on behavioral science in life insurance. The research, titled "Searching for Simplicity: Using Behavioral Science to make Life Insurance Product Information Simple and Effective," simulated online term life insurance purchasing to test behavioral science techniques. It aims to help insurers simplify and improve the life insurance buying experience for consumers.

The study involved two experiments: one focused on improving comprehension of written messages in the sales journey, and another examining the impact of human and AI-generated videos. Each experiment collected data from 2,000 U.S.-based participants. The research provides insights on how insurers can enhance customer understanding of life insurance products and suggests directions for future research in this area.

Positive

• Collaboration between SOA Research Institute and RGA (NYSE:RGA) on behavioral science research
• Potential for improving consumer understanding and purchasing experience of life insurance products
• Large sample size of 2,000 U.S.-based participants for each experiment

Negative

• None.

CHICAGO, Sept. 12, 2024 /PRNewswire/ -- The Society of Actuaries (SOA) Research Institute, in collaboration with Reinsurance Group of America, Incorporated (NYSE:RGA), a leading global life and health reinsurer, announced findings from new research on behavioral science for the life insurance sector. This research simulated online term life insurance purchasing to test behavioral science techniques.

This research highlights techniques insurers can use to simplify and improve life insurance purchasing for consumers.

The research report "Searching for Simplicity: Using Behavioral Science to make Life Insurance Product Information Simple and Effective" provides insights on how insurers can help sharpen the customer's understanding of life insurance products and formulates a direction for future research.  

"This research highlights techniques insurers can use to simplify and improve the life insurance purchasing experience for consumers," said Rosmery Cruz, Executive Director, Behavioral Data Science, RGA. "Insights from the research demonstrate how strategically applied behavioral science can foster greater comprehension, trust, and clarity around these vital protection products."

RGA's behavioral science team designed an experiment to improve the comprehension of written messages used in the sales journey for life insurance. A second experiment examined the impact of harnessing both human and AI-generated videos.

"Many people find life insurance complex, and this research with RGA helps explore how to best engage with customers by enhancing the product relevance and understanding," said R. Dale Hall, FSA, CERA, MAAA, SOA Managing Director of Research.

The researchers collected two samples of 2,000 U.S.-based participants for each respective experiment. Participants who took part in the first experiment were ineligible to take part in the second experiment. Access the full report.

About The SOA
With roots dating back to 1889, the Society of Actuaries (SOA) is the world's largest actuarial professional organization with more than 33,000 actuaries as members. The SOA's vision is for actuaries to be the leading professionals in measuring and managing risk. To learn more, visit soa.org.

About the SOA Research Institute
Serving as the research arm of the SOA, the SOA Research Institute provides objective, data-driven research bringing together tried and true practices and future-focused approaches to address societal challenges and your business needs. It provides trusted knowledge, extensive experience and new technologies to help effectively identify, predict and manage risks. www.soa.org/research/research-institute/

About RGA
Reinsurance Group of America, Incorporated (NYSE: RGA) is a global industry leader specializing in life and health reinsurance and financial solutions that help clients effectively manage risk and optimize capital. Founded in 1973, RGA is today one of the world's largest and most respected reinsurers and remains guided by a powerful purpose: to make financial protection accessible to all. As a global capabilities and solutions leader, RGA empowers partners through bold innovation, relentless execution, and dedicated client focus — all directed toward creating sustainable long-term value. RGA has approximately $3.8 trillion of life reinsurance in force and assets of $109.9 billion as of June 30, 2024. To learn more about RGA and its businesses, please visit rgare.com or follow RGA on LinkedIn and Facebook. Investors can learn more at investor.rgare.com.

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SOURCE Society of Actuaries

FAQ

What is the focus of the new study by SOA Research Institute and RGA (NYSE:RGA)?

The new study focuses on behavioral science in life insurance, aiming to simplify and improve the life insurance purchasing experience for consumers through behavioral science techniques.

How many participants were involved in the RGA (NYSE:RGA) behavioral science experiments?

The researchers collected two samples of 2,000 U.S.-based participants for each of the two experiments, totaling 4,000 participants.

What were the two experiments conducted in the RGA (NYSE:RGA) behavioral science study?

The first experiment focused on improving comprehension of written messages in the life insurance sales journey, while the second examined the impact of human and AI-generated videos.

What is the title of the research report released by SOA and RGA (NYSE:RGA)?

The research report is titled "Searching for Simplicity: Using Behavioral Science to make Life Insurance Product Information Simple and Effective."