How does technology help reach the uninsured?

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How does technology help insurers reach the uninsured?& nbsp; originally appeared on & nbsp;quora: the place where knowledge can be gathered and shared to empower people to learn from others and better understand the world.

reply& nbsp; from & nbsp;Phil Murphy, VP of Insurance at & nbsp;Ethos life, on & nbsp;quora:& nbsp;

Life insurance suffers from 150 years of regulatory law, agents with sales incentives and a lengthy and often invasive application process. It is a & nbsp;$ 145 billion& nbsp;Market, but due to its unique complexity and fragmentation, the industry has not seen significant innovations in over a century. We have seen modest innovations related to hybrid products and the use of data. Most innovations, however, are based on optimizations and market changes in core products and processes. From an actuarial point of view, the last major change until recently was the widespread use of blood tests in the late 1980s.

The life insurance industry needs to be more effective on the underinsured and uninsured markets. Innovative insurers are now committed to democratizing insurance and growing the market for everyone. We have been talking about closing the nationwide supply gap for years, and with new technologies, we are right on our doorstep to do so. A lot of work still needs to be done, especially in Central America, which has a large share of uninsured niches, as selling smaller and cheaper policies is becoming expensive these days. Actually,& nbsp;40 percent& nbsp; of US consumers feel intimidated by the application process for life insurance. Many dramatically overestimate the cost and are unsure of how much or what type of policy to buy.

Data and cloud technology herald a new era of access. The technology removes the barriers that usually prevent life insurance – namely costs and a historically time-consuming, invasive and sometimes biased application process. In return, we can usher in a new era of efficiency that enables us to reach new customer segments and get a firm grip on the price16 trillion& nbsp;nationwide supply gap, as indicated by LIMRA in 2015.

The application process took an average of 10 weeks and required a nurse to visit your home (with a blood sample). In addition, the aggregate data that life insurers have relied on to underwrite in the past is often incomplete and isolated. Nowadays the application process is often completely online. Sales agents for certain markets have been replaced with self-service products for mobile devices and desktops. In times of life insurance APIs, we have a faster and more accurate underwriting process. You can get a personalized policy in minutes. No unnecessary medical exams, no sales agents who have incentives to sell you a policy too much, no checks on your monthly payments. Remember: TurboTax did this for taxes, but for life insurance.

Machine learning has played a particularly large role in reducing costs because it enables large-scale personalization. In March 2019 & nbsp;ethos& nbsp; created a tool called "Right Sizer" that uses machine learning to analyze customer data and ensure that families never pay more than necessary for the coverage they need. Approximately 50 percent of customers who have the right size contracts receive a lower monthly premium that corresponds to the coverage they actually need to protect their family.

By democratizing nationwide access to ethical life insurance for consumers, new technologies are helping modern insurers provide more families with financial security and peace of mind for generations to come.

This question& nbsp; originally appeared on & nbsp;quora& nbsp; – The place where knowledge can be gathered and shared to empower people to learn from others and better understand the world. You can follow Quora on.Twitter& nbsp; and & nbsp;Facebook, More questions:

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How does technology help insurers reach the uninsured? originally published on quora: The place where knowledge is collected and shared to empower people to learn from others and better understand the world.

reply by Phil Murphy, VP of Insurance at Ethos life, on quora:

Life insurance suffers from 150 years of regulatory law, agents with sales incentives and a lengthy and often invasive application process. It's $ 145 billion Market, but due to its unique complexity and fragmentation, the industry has not seen significant innovations in over a century. We have seen modest innovations related to hybrid products and the use of data. Most innovations, however, are based on optimizations and market changes in core products and processes. From an actuarial point of view, the last major change until recently was the widespread use of blood tests in the late 1980s.

The life insurance industry needs to be more effective on the underinsured and uninsured markets. Innovative insurers are now committed to democratizing insurance and growing the market for everyone. We have been talking about closing the nationwide supply gap for years, and with new technologies, we are right on our doorstep to do so. A lot of work still needs to be done, especially in Central America, which has a high percentage of uninsured niches, as selling smaller and cheaper policies is becoming expensive these days. Actually, 40 percent of US consumers feel intimidated by the application process for life insurance. Many dramatically overestimate the cost and are unsure of how much or what type of policy to buy.

Data and cloud technology herald a new era of access. The technology removes the barriers that usually prevent life insurance – namely costs and a historically time-consuming, invasive and sometimes biased application process. In return, we can herald a new era of efficiency that enables us to reach new customer segments and materially tackle the $ 16 trillion nationwide supply gap, as indicated by LIMRA in 2015.

The application process took an average of 10 weeks and required a nurse to visit your home (with a blood sample). In addition, the aggregate data that life insurers have relied on to underwrite in the past is often incomplete and isolated. Nowadays the application process is often completely online. Sales agents for certain markets have been replaced with self-service products for mobile devices and desktops. In times of life insurance APIs, we have a faster and more accurate underwriting process. You can get a personalized policy in minutes. No unnecessary medical examinations, no sales agents who have incentives to sell you one policy too much, no paper checks for your monthly payments. Think: TurboTax did this for taxes, but for life insurance.

Machine learning has played a particularly large role in reducing costs because it enables large-scale personalization. In March 2019, Ethos developed a tool called Right Sizer, which uses machine learning to analyze customer data and ensure that families never pay more than necessary for the coverage they need. Approximately 50 percent of customers who have the right size contracts receive a lower monthly premium that corresponds to the coverage they actually need to protect their family.

By democratizing nationwide access to ethical life insurance for consumers, new technologies are helping modern insurers provide more families with financial security and peace of mind for generations to come.

This question originally published on quora – The place where knowledge can be gathered and shared to empower people to learn from others and better understand the world. You can follow Quora on Twitter and Facebook, More questions: