Let's be real: insurance largely operates as a "purchase and forget" service. Yes, insurers have made strides toward better customer interaction over recent years, but despite those efforts, positive engagement is still the single biggest missed opportunity. Most customers still only dust off their insurance policies when it's time to make a claim, and that's just a shame.Why insurers still haven't cracked engagement“The industry has come a fair distance, but it's still stuck near the start line,” says Jonathan Roomer, co-founder and Chief Customer Officer at YuLife.“Customers now expect much more from their providers, including regular touchpoints, meaningful interactions, and genuine support. Yet, many insurers remain stuck in outdated thinking, assuming low engagement is not only ‘how insurance works’, but in some cases preferable."We’re living in a world transformed by Netflix, Spotify, and Amazon, businesses built around consistent, meaningful engagement. Insurance, by contrast, often feels stuck in a model from the last century. Customers increasingly want personalised services and daily value. But as J.D. Power recently highlighted, over 30% of customers still aren't satisfied with insurers’ digital offerings. This signals a continuing gap between what customers expect and what's actually delivered.Why the traditional model isn't cutting it anymoreInsurance has historically been transactional: you buy a policy, put it away, and hope never to use it. But today, that approach leaves customers disconnected and insurers vulnerable. No relationship is built, no trust is strengthened, and insurers lose the chance to positively influence customer behaviours.The behaviour change aspect might sound superficial, but it reveals a fundamental truth about insurance. Insurance is designed to pool and manage uncontrollable risk. Poor mortality and morbidity driven by lifestyle decisions, however, are within our control and should therefore be proactively controlled rather than "just" insured. "Insurance shouldn't just passively insure controllable risks like poor lifestyle choices," Jonathan explains. "Instead, insurers should actively engage customers, encouraging healthier behaviours rather than simply waiting to cover the consequences. This isn't just good for people, it's also beneficial for insurers' balance sheets and capital requirements."The real cost of 'purchase and forget'The set-and-forget approach isn't just bad for customer satisfaction, it’s bad for business. When customers don't feel a connection, loyalty evaporates quickly. Insurers then face rising churn and spiralling acquisition costs.Moreover, passive insurance misses a huge opportunity to promote healthier lifestyles and preventative measures. If insurers aren't actively nudging positive behaviour, claims will remain reactive and costly. Dissatisfaction drives churn, and churn costs insurers billions; an estimated $170 billion in premiums could be at risk in the coming years because of poor customer experiences.A new era of proactive positive engagementThe solution is clear: insurers must shift from passive providers to proactive partners, using engagement-based models powered by behavioural science and gamification—MAKE IT FUN!"Engagement isn’t just about sending more emails," Jonathan adds. "It’s about meaningful, daily interactions that help people make healthier, smarter choices, delivered through user-friendly tech. At YuLife, we've proven this model works."YuLife’s results speak volumes:75% of employees download the YuLife app—a remarkable achievement in an industry where user engagement often struggles to reach double digits.43% engage with it at least monthly.17.4% interact multiple times a day.“This is hardly accidental,” says Jonathan. “We've deliberately integrated behavioural science and gamification principles into our core product. People keep returning because they find it genuinely valuable."Turning engagement into financial resultsEngagement isn't just customer-friendly, it's financially smart. Customers who feel connected are healthier, happier, and far less likely to churn. This reduces costs, drives long-term loyalty, and boosts profitability. Engaged customers typically buy 22% more products and stay with their insurer for around four years longer.Additionally, regular engagement creates rich data, allowing insurers to spot trends and personalise products far more effectively. It's a virtuous circle that benefits everyone involved.Crucially, by proactively managing controllable risks through engagement, insurers can directly influence the risk profile of their active book. This reduces claims payouts, enhances customer lifetime value, improves loss ratios, and positively impacts solvency calculations. Ultimately, this means insurers can hold lower reserves—a clear win-win for both providers and customers.Reimagining insurance for the futureInsurers who cling to the old transactional mindset will continue losing ground. To truly thrive, the industry must embrace genuine, meaningful engagement, turning insurance from something customers grudgingly purchase into something they genuinely value."At YuLife, our mission is simple: to inspire people to live their best lives, and we do that through regular positive engagement," Jonathan concludes. "That's what the future of insurance looks like, customers feeling supported every day, not just when things go wrong. And that’s a future worth investing in.”About YuLifeYuLife is working to reimagine the insurance industry by protecting lives, rewarding living and inspiring life. We’re on a mission to transform traditional insurance into a life-enhancing experience each employee will value and use daily. How does it work?Our award-winning app uses behavioural science and game mechanics to reward your people for living well while offering protection in case of crisis. And with our top-rated employee assistance programme, your team gets access to mental, financial and social support, virtual GPs, nutritionists, life coaches and more to help them live their best lives.Because we believe that your employees should benefit from their insurance from day one — and that wellbeing should be accessible every day, for everyone.Request a demo for your team today.