Life insurance is fundamentally hard to sell; it’s morbid to think about, promises no immediate rewards, and often requires a lengthy paper application with minimal guidance.
Despite the popularity of personalized products in other areas of finance and fintech, life insurance largely remains unchanged.
A small, but growing pocket of insurtech startups are shaking up the status quo by finding ways to digitize life insurance and increase its appeal.
Life insurance is a fundamentally difficult product to sell; it requires people to think about their deaths without promising any immediate returns.
And, despite tech innovations and the development of personalized services in other areas of finance, life insurance remains largely unchanged.
Luckily, there is a small but growing pocket of insurtech startups looking to modernize it. These companies are finding ways to digitize life insurance to appeal to consumers — and they’re giving incumbents the opportunity to revamp traditional offerings, either by partnering with them or using their technology.
Business Insider Intelligence, Business Insider’s premium research service, has forecasted the shifting landscape of life insurance in the The Future of Life Insurance report. Here are the key problems insurtechs are tackling:
Lack of education: Forty percent of US consumers told the Life Insurance and Market Research Association (LIMRA) that they feel intimidated by the life insurance application process, often drastically overestimating its cost and facing uncertainty about how much or which type of coverage to buy.
Inconvenient application process: It can take weeks or months for coverage to take effect because of the sheer number of meetings and parties combing through paperwork in each round of the application process. The risk for the insurer often warrants reviews from the carrier, a team of underwriters, a broker, and even a medical examiner.
Low customer loyalty: Life insurance tends to be a “set it and forget it” …read more
Source:: Business Insider