What does commoditisation of term assurance lead to for providers?

The commoditisation of term assurance typically results in providers placing greater significance on competitive pricing. As term assurance becomes more standardized and similar across various providers, price often becomes the primary differentiating factor for consumers. Therefore, insurers strive to position themselves favorably on price comparison websites to attract customers. Being ranked near the top can significantly impact their visibility and ultimately influence purchasing decisions, as consumers often gravitate toward the most affordable options listed. This strategy reflects the broader market dynamics where cost efficiency and competitive pricing become paramount in a commoditised environment, directly influencing the purchasing behavior of consumers seeking coverage.