Allison Arzeno, the CEO of Assurance IQ, is working towards offering personalized guidance to make finding and using insurance easier. Income volatility is a major barrier to financial stability, with more than half of working Americans being paid hourly. The gig economy and part-time work can lead to fluctuating schedules, making it difficult to predict income. This instability can trap individuals in a cycle of poverty, with disruptions to employment and income contributing factors.
Research has shown that Americans prioritize financial stability over moving up the income ladder. However, economic instability caused by income volatility can lead to tradeoffs such as borrowing money or skipping meals to pay monthly bills. This can have long-term consequences, such as expensive fees for missing credit card payments. In an effort to help people achieve financial stability, there is a need for innovation in financial services to support those with volatile incomes.
Insurance can be a tool to buffer against external factors that compound income uncertainty. However, many lower-income consumers struggle to choose a health plan that meets their needs. Life insurance can also provide stability for future generations by replacing income and covering costs. Insurers can offer more personalized guidance through modern technology to help individuals select appropriate coverage. Flexible payment options and coverage adjustments can also benefit consumers with volatile incomes.
Despite the importance of insurance, it is just one part of a comprehensive plan for achieving financial stability. The financial services industry has an opportunity to offer flexible payment solutions that cater to individuals with fluctuating incomes. Personalized solutions, such as skipping a monthly payment due to unexpected expenses, can help people maintain financial stability in the long-term. As inflation continues to impact Americans financially, there is a growing need for innovation and personalization in financial protection tools.
Allison Arzeno believes that there is a massive opportunity for innovation in financial services to help individuals with volatile incomes achieve stability. By offering flexible payment options, coverage adjustments, and faster claim processing, insurers can better serve consumers with fluctuating incomes. As more institutions adopt artificial intelligence and modern technology, there is potential for continued innovation in the financial services industry. Arzeno suggests that the financial services industry must adapt to the changing needs of consumers to provide better, more flexible solutions to the mass market.
