LIMRA stats paint a clear picture of consumer expectations .
48 % of Americans are more likely to buy life insurance with simplified underwriting .
• 52 % of generation X consumers agree .
• Women specifically prefer simplified underwriting to avoid medical exams .
The carriers automating and accelerating their underwriting are reporting a large reduction in processing time compared to traditional underwriting . This saves them money on the underwriting process . On average , carriers who converted to automated or accelerated underwriting report that the time required to reach the medical questionnaire has been reduced by more than half . The time to reach the final decision ? Cut by a full two-thirds . Additional cost savings are found in the reduction of APS in 50 % of cases and the elimination of full underwriting on fully automated cases .
Carriers can take this automation to the next level to gain additional benefits . They can satisfy the demands of the distribution and the consumer by adding the automated decision up front , inside the sale . The more decisions made during the sale , the smoother the experience will be for the agent and the consumer .
Skipping to dessert
With automated and accelerated underwriting tools and platforms , electronic data is already part of the equation . Carriers have the information they need . They have the rules defined to help automate the underwriting process . The only missing piece is leveraging this information at the point of sale . Insurance Technologies reports that many carriers have projects planned in 2022 and 2023 to move their underwriting decisions up front , inside the sale , to fully streamline the process .
By using available data , carriers can often analyze risk with no need for medical exams or physician statements . Data points like prescription profiles , MVR and EHR data , along with predictive analytics , are enough to provide a decision on 80 % of cases . Taking it to the next level puts this information inside an e-Application solution for a real-time decision or elimination of steps .
In other words , a decision can be provided while the advisor is still sitting with the customer .
Distributors ’ minds typically race with excitement thinking about what this could mean for their sales process . Instead of waiting days or weeks for a decision , the client receives a decision in real time . No more waiting for a call or an email to learn the fate of the application . An unwieldy sales process transforms into a sleek and delightful customer experience .
Despite understanding these benefits , some carriers are still waiting and watching . Many may think it sounds like the underwriting equivalent of skipping to dessert . But for carriers and distributors using an e-Application solution , underwriting at the point of sale is not just possible . It ’ s practical . Moving their automated underwriting steps inside an e-Application workflow is faster and easier than most carriers would expect .
Getting there
Few disagree that the life insurance industry has some catching up to do in terms of technology and digitization . And though we are not there yet , we are on the right track . Most life insurance carriers have some form of automated or accelerated underwriting . Fewer are using it to its potential . Automated and accelerated underwriting at the point of sale streamlines underwriting and the entire sales process . It saves the carrier and distributor time and money , and it puts the focus back where it needs to be : on the complex cases and , ultimately , the client .
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