Tech Makes Room for Life Insurance for the Middle Market
Securian's most recent launch on the Securian Access platform was January's MyLife Select term life insurance, which offers up to $250,000 in coverage. Notably, Johnson says, the entire process can be completed on a mobile phone, using third-party data to augment customer-entered information.
"We've designed the platform to be device agnostic, so the site is built using responsive design," Johnson says. "I recently saw that more than 50% of e-mails are now open on a mobile phone or tablet. We don't have enough experience yet to know what percentage will go start to finish on a mobile, but from a content perspective, we know we need to be able to hook them into a sale on a mobile device. If they want to start and finish the application on the mobile they will do so. Our prediction is that consumers would transfer to a mobile or desktop to finish. But people are getting really good at using their phones for all sorts of transactions."
Elizabeth Johnson, Securian
That means on the back end, data calls and approvals have to be automated so they can return answers quickly, Johnson notes. Securian is currently working with the Medical Information Bureau to automate checks of that database so that there is no intermediary involved. Though same-day turnaround is possible, it still requires an underwriter to run the check.
"We don't want to just be a product that they can comparison shop from a price perspective," Johnson says. "We want to be a leader in our space in opening to different channels."
As with MetLife, Securian still expects more complex products to be sold through the traditional agent channel. The cost of speed is a limit to what can be properly underwritten and priced through digital means. That's where effective product development comes in, Johnson says.
"The more we can use tech to simplify that process, the more complex the product that could be available," she says. "But what type of product is best to sell through the digital channel? You reach a roof on complexity there. There may be someone who wants to buy a variable life policy online but they're going to end up wanting to work with an advisor. That's just the nature of the product."
In fact, agents and advisors serving more affluent customer segments can benefit from middle-market focused innovations around speedy, less invasive underwriting. The Principal's Accelerated Underwriting Program, which eliminates medical exams for some applicants, works with all of its products, says VP of individual life Greg Linde.
A Principal TeleApp interviewer follow up on advisors' leads with a series of medical questions and supplements that with third-party data from motor vehicle reports, a pharmaceutical database, and the Medical Information Bureau to determine eligibility for the Accelerated Underwriting program.
"Where I think it has real applicability is that on some of the smaller face amounts [agents] don't have the time to spend on the processing," Linde says. "It helps them process business faster than in the past."
The ability for agents to leverage analytic tools built for other purposes is a key selling point for other carriers as well. At MetLife, Bhatt says, "we build for direct and leverage for agency."
[How Erie Insurance agents sell life to P&C customers]
"We believe that a certain percentage of our customers will either want or ask for a face to face or more dedicated level of support," he says. "We already do multiple pilots and tests working with local agencies to offer agent support to our direct business clients. We're learning when is the right time, what are the right triggers, we have a pretty robust analytics environment that allows us to really nurture our clients."
In the end, it comes down to life insurers recognizing the omnichannel reality and being prepared to meet consumers of all kinds across all channels, Linde says.
"Not everyone wants to do business a set way, people want to do things different ways," he says. "This is an initial foray into a new way of doing business. I think that over time the sky's the limit."
Nathan Golia is senior editor of Insurance & Technology. He joined the publication in 2010 as associate editor and covers all aspects of the nexus between insurance and information technology, including mobility, distribution, core systems, customer interaction, and risk ... View Full Bio
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