Families are overwhelmed by all the different insurance options available. Many Americans feel they don’t have enough knowledge and education to make informed decisions or find the right solutions for their financial health.
Much of the recent innovation in the insurance market has focused on improving the consumer experience (e.g., Lemonade, Hippo), and yet most of the solutions are focused on making a single service more comprehensive. Consumers are craving help beyond single-service offerings.
Much of the recent innovation in the insurance market has focused on improving the consumer experience (e.g., Lemonade, Hippo), and yet most of the solutions are focused on making a single service more comprehensive. Consumers are craving help beyond single-service offerings.
When looking
to purchase insurance,
54%
of Americans that don’t purchase insurance solutions are deterred because they don’t know what type or how much coverage they need.
(source: LIMRA)
What if there was one central place for families to learn about and buy the financial and insurance products that best fit their needs -- designed around what matters most to them, rather than endless searches? Imagine how valuable this would be to consumers who are in a moment when they're primed for preparation—like expecting a child or planning for retirement.
let's build…
A one-stop-shop platform that offers families bundled insurance and financial products.
Key features
- A simple, easy-to-navigate platform bundles a range of insurance and financial products that map to what families need, from wills to college savings accounts, to life insurance and more.
- The bundles should be sized (think small, medium, or high coverage) to make it easier to find what’s right for your family.
- The platform uses human-centered language to cut through jargon and make the products clear.
- Steps are broken down into bite-sized pieces to make progress easily trackable.
- A family-centered user experience enables partners to navigate through decisions together.
- The platform includes planning tools and products for the short and long-term.
- A readily available online personal advisor removes additional friction by giving advice and support.
THE BUSINESS OPPORTUNITY
- When tested with consumers, a “one-stop-shop” offered increased customer value worth a potential annual market between ~$5-10B. This is revenue from the “one-stop shop” itself, and revenue from other products (e.g., life insurance, disability insurance, etc.) from an insurance company that offers a “one-stop shop”.
- We estimate 4 - 11M caregivers of children and/or expecting caregivers would buy a “one-stop shop” platform.
- An additional ~2 - 4M caregivers of children and/or expecting caregivers also said they would buy other products from an insurance company that offers a “one-stop shop” product.
of CAREGIVERS SAID
THEY WOULD ‘DEFINITELY’ OR ‘LIKELY’ pay for a “one-stop-shop” product.
Source: 5,000-person consumer survey, based on this description.
what we heard
Overall, caregivers were interested in a “one-stop-shop” platform as they believe it to be useful to their families, helping to save them time. Tailoring this product around key life events (e.g., expecting a child) can result in an even better customer acquisition and customer lifetime value.
Expectant parents proved to be a great demographic to target, expressing 20 percentage points more interest in this product than those who aren’t expecting.
Caregiver type who said they definitely would buy “one-stop shop”
Source: 5,000-person consumer survey, June 2023
I think this product could be useful to my family because we are in our 30s and just getting started at being real adults. We don't know or understand a lot about the different types of insurance. I think this would streamline the process and make it much easier for us to know what type of coverage we need.”
kristen, 32
Stay-at-home mother, expecting her second child
how to get started
Creating a successful “one-stop shop” for families’ insurance and financial needs means addressing multiple pain points: consumers frequently don’t know what they need, the market is fragmented, and it’s difficult to assess the right amount of coverage for various family situations. But families are eager for a consolidated solution, and starting small and keeping a few key principles in mind can ensure a successful product-market fit.
Considerations:
1
Group products into bundles so they’re easier for families to navigate by stage of life.
Since consumers are often overwhelmed by choices, try simplifying the customer experience by offering a set of bundled products based on a few life stages and need states. What might a small, medium, or high coverage bundle, at set price points, look like for consumers, based on their needs and their risk profile?
2
Provide value through core products, drive revenue through add ons.
The most compelling value proposition is cutting through the complexity and making insurance easy to navigate for consumers. To grow your customer base, consider providing the bundled service for free, and drive revenue through the sales of add-on products that are marketed in the bundle or through a small subscription (e.g. when a will is included in your bundle, you can pay a monthly fee to store the will in your account).
3
Cut through complexity with product education, plain language, and legible steps.
Consumers struggle to compare offerings from different companies and to parse the fine-print distinctions between policies. Design with users’ priorities and preferences in mind, and use understandable language. Break down steps into bite-sized pieces to make the process less overwhelming.
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