COVER STORY
Wallace, iPipeline: AI has the power to be transformative for the
life, health, and annuities industry. The speed and objectivism
with which AI works allows humans to focus on innovation and
proactive business activities. For example, AI can lower risk,
determine suitability, and eliminate backlogging by quickly
identifying inconsistencies in applications. AI can review and
make decisions on filed claims. All of this results in better
business decisions and happier customers.
“The speed and objectivism with
which AI works allows humans to focus
on innovation and proactive business
activities.”
Wallace, iPipeline
AI is also able to execute predictive data analytics. While this
can be applied to a variety of selling opportunities across the
industry, it can also be used to identify certain patterns in client
responses to identify fraud, further mitigating company risks.
Another area is advanced filtering tools. These can be used
to sift through mountains of customer data and determine
who among your customers is likely to execute a secondary
transaction. The ability to accelerate this process and proactively
anticipate clients’ needs in the life, health and annuities industry
could result in as much as a 25% increase in business. Who
would not like to experience that windfall of revenue?
Real game-changers
With change being the constant in the industry, the six leaders
shared their thoughts on possible game-changers impacting the
business in the next five years.
Distribution perspective
Ziambras, AIMCOR Group: One of the most fundamental game-
changers in the next five years, from a people perspective, will
be the changing of the guard at the manufacturing as well as
the distribution side of our industry. Second, legacy, whether
at a brick-and-mortar or advice level, will continue to morph
from an asset to a liability. We will need to accept and manage
around the fact that to the younger, digitally enabled consumer,
the 125-year old insurance company or the 30-year veteran
advisor will not matter as much. So, technology will not only
clearly delineate the battle lines between the old and the new,
but also make the acquisition of insurance seamless, paperless
12
Perspectives
Q3 2019
and instantaneous and the ownership experience engaging,
rewarding and delightful. In other words, everything it has…
never been.
Tattersall, BackNine: So much focus is going into inexpensive
transactional term but it’s difficult to make money with small
premiums. Having energy put into high premium cases could
shift the profitability of our business.
Manufacturing perspective
Manandhar, Legal & General America: Product innovation is
key when it comes to ensuring that partners are providing
customers with the best value for life insurance – and that
means giving them options. One product we believe to be a
game-changer, and one that’s already in the marketplace, is
OPTerm 40 – the longest duration term product available. With
Americans living longer and working longer, there can often be
a gap in life insurance coverage.
In terms of game-changing technology, the car insurance
industry has already developed apps that allow agents to
process applications on the go, streamline those application
forms and even monitor driving habits to assess risk. More and
more, insurtech is being integrated into everyday life, making
it easier for customers to receive their policies “on-demand.” If
innovations like those taking place in the car insurance industry
were increasingly made available through life insurance carriers,
the life insurance gap could begin to close.
Prabhu, Pacific Life: Three game-changers come to mind:
Blockchain – Most recently LIMRA revealed a partnership with
the RiskStream Collaborative, which calls for a blockchain
application to streamline the process for validating licenses
and appointments for life insurance agents.
Epigenetics – While regulators are impacting the way this
technology is used, it is a powerful way to mitigate risk and
manage mortality.
Facial recognition technology – This technology can be used
as a secondary source to validate the data and in some cases
be the primary source of data on a given insured.
Technology perspective
Nielsen, GetInsured: Wider adoption of digital ledger technology
like blockchain to provide an open infrastructure for creating,
issuing, viewing and verifying enrollments will be a game-
changer. We’ll begin to see carriers utilizing blockchain to take
control of their data and moving away from fragmented and
disharmonious data management structures to enhance their
commissions reconciliation, claim integrity, client retention and
data sharing capabilities.