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How Technology Influences Life Insurance

By Insurance CIO Outlook | Wednesday, August 05, 2020

The insurtech revolution enables life insurers to raise the bar when it comes to underwriting and transparency.    

FREMONT, CA: Modern technology is today a big part of every aspect of life, and life insurance is not exempted from this. The carriers with traditional life insurance models are now either transforming or perishing. Insurtech firms have played a crucial role in bridging the gap between traditional life insurance framework and new technologies. While the insurtech revolution has been impactful for the insurance industry as a whole, life insurance carriers have been benefitted specifically owing to certain interventions. Just before the technology-induced makeover gained prominence, life insurers were struggling to overcome challenges that had resulted in the stagnation of business. However, the insurtech trends gained traction at the right time and stepped in to give life insurance a new lease of life in the competitive insurance market. The below list contains some ways in which the insurtech revolution is shaping the modern life insurance landscape.

• Minimized Friction in Underwriting

Underwriting in life insurance is more complicated when compared to other insurance segments. Life insurance companies have to get customers to fill in details regarding personal health. Sometimes, there is a need for medical examinations as well. These result in friction, delays, and early drop off. Today, insurtech solutions, backed with technologies like data analytics and AI, have enabled accelerated underwriting by allowing underwriting offers without the need for all the details or documents. Apart from that, the front end and application formats have become sleeker and more intuitive than ever, resulting in an interactive experience for customers during underwriting.  

• Revamped Strategies with Focus on Transparency

Two important aspects of the modern life insurance operational makeup are data and transparency. Life insurance carriers are now enjoying greater access and better control over data that can facilitate everything from underwriting and risk management to customer experience and product development.  As processes become data-driven, proving transparency to policy-holders is becoming simple. Insurtech is the reason for this shift to data-based models.

Insurtech interventions have also resulted in an expanded market for life insurance products and policies by offering better marketing possibilities. Thus, be it the capability to understand customers better, or the streamlined and secure processes, life insurance carriers have the insurtech movement to thank.

See Also :-Top Insurance Technology Solution Companies

 

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