How can we explain the 25% decline in new life insurance policy applications for The Co-operators's young adult demographic over the past six months?

Introduction

The Co-operators is facing a significant 25% decline in new life insurance policy applications from young adults over the past six months. This issue requires a thorough analysis to identify the root cause and develop effective solutions. I'll approach this problem systematically, examining internal and external factors, analyzing data, and formulating hypotheses to uncover the underlying reasons for this decline.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has this decline been consistent across all six months, or are there any noticeable patterns?

Why it matters: Seasonal trends could explain fluctuations in applications. Expected answer: The decline has been relatively consistent. Impact on approach: If consistent, we'll focus on longer-term factors rather than seasonal effects.

• Considering the specificity of the demographic, I'm wondering about any recent changes in marketing strategies. Have there been any significant shifts in how we target or communicate with young adults?

Why it matters: Changes in marketing could directly impact application rates. Expected answer: No major changes in marketing strategies. Impact on approach: If no changes, we'll need to look at other factors affecting young adult engagement.

• Given the focus on new policy applications, I'm curious about our retention rates. Has there been any change in policy renewals or cancellations among young adults during this period?

Why it matters: Changes in retention could indicate broader issues affecting both new and existing customers. Expected answer: Retention rates have remained stable. Impact on approach: If stable, we'll focus specifically on factors affecting new applications rather than overall customer satisfaction.

• Considering potential external influences, I'm interested in any regulatory changes. Have there been any new insurance regulations or policy requirements that might affect young adults specifically?

Why it matters: Regulatory changes could create barriers for young adults applying for life insurance. Expected answer: No significant regulatory changes in the past year. Impact on approach: If no changes, we'll focus more on internal factors and market conditions.