UNDERWRITING
Trumpeting the message
Automated underwriting to empower sales
Consumers are demanding a simplified , faster and easier way to buy life insurance . We are used to conveniences like virtual doctor visits , TurboTax and two-day shipping . The experience of buying life insurance is not matching the expectations . Traditional underwriting is seen as invasive and inefficient — issues that in today ’ s high-expectation marketplace do not cut it . The entire experience leaves a bad taste in the consumer ’ s mouth .
Thankfully , technology to streamline underwriting exists today , and many insurers are already using it . Some are unlocking its full potential by taking it to the point of sale .
A glaring need
Katherine Dease holds over 22 years of product development , product management , and business development experience within the financial services industry . As Head of Market Intelligence , Katherine is responsible for market research and strategy . Katherine is an enthusiastic marathon and triathlon athlete .
To call traditional underwriting the elephant in the room is an understatement . Life insurance buyers expect a painless and customer-focused process .
Life insurance buyers expect a process like those in other areas of their lives . Painless and customer-focused . Consumers want a digital experience . They want to buy life insurance without the need for invasive and time-consuming exams and processes . And they want it without waiting weeks or even months to hear back on a decision .
The future is here — mostly
Life Insurance underwriters have had to order the information they needed and evaluate it manually . Today , underwriters still need the same data to gauge mortality and risk , but they can get it electronically . Digital data is more widely available today than in years past .
Many insurers are already using that digital information in creative ways to power underwriting decisions on the backend . In fact , LIMRA found that most life insurers today offer some form of automated or accelerated underwriting . The insurer ’ s underwriting platform handles the complex calculations . These tools use modeling , algorithms and predictive analytics to provide insight for carriers .
Some carriers automate the entire process to accept or decline cases based on their specific underwriting rules . Others use a mixed approach . They use rules to evaluate cases and decide which to pass to an underwriter for review and which qualify for complete automation . Still others use the technology to simply provide a score , with all cases moving on to an underwriter for review . And some carriers simply accelerate the process using the data and rules to bypass exams and attending physician statements ( APS ).
30 Perspectives Q3 2022