Over the past 12 months, technology has entered people’s lives in new and unexpected ways with some experts saying the digital adoption we’ve experienced since March 2020 is equal to 5 years of digital gains.
The continued reliance on outdated actuarial tables and obsolete information will cost these companies millions of dollars in missed opportunities.
Most life insurance companies take seven factors into account when determining a person’s policy and people with conditions such as diabetes may not be able to get life insurance at all, that is 60% of the U.S. population.
When insurers use more data to develop policies and combine that with machine learning, they can create a range to develop new policy spectrums so that if someone has a pre-existing condition, they are not rejected but put into a different class which will help companies profitably reach new audiences.
Legacy insurance companies that refuse to adapt to the new parameters established by COVID-19 and advances in technology will fall prey to newer startups who have embraced the 21st century.
New startups have based their model on incorporating insurtech into the insurance process from the very beginning and have been able to transform the process of buying insurance, thus making it easy and transparent for consumers.
For years, the lack of digital-know-how has harmed the insurance industry and as a result, its agents and consumers with outdated policies, but the COVID-19 pandemic has highlighted other ways the lack of digital adoption is hurting the industry:
- Consumers were not able to get required medical exams during lockdown resulting in a backlog waiting to get life insurance—in some cases up to 3 months.
- Deferred preventative healthcare could lead to a flood of claims later this year, with many companies lacking the technology to process the claims in a timely manner.
- Unknown factors to the mortuary tables will result in even more outdated policy offers that consumers don’t want or need.
- Agents can’t sell the way they used to and this impacts their earnings and livelihood. Face-to-face meetings and social distancing mean selling insurance products online via zoom, apps, and through social networks are requisite for agents to survive and thrive.
Traffk is an innovative insurance underwriting and distribution platform designed to build and launch modern insurance products and brands that scale. With more than 25 years of combined leadership in insurance and AI, Paul Ford and Glen Hibler co-founded Traffk as a solution to the problems of inefficient, assumption-based underwriting and slow processing in the insurance industry. Traffk’s goal from the start has been to comprehend the risks and modernize the insurance underwriting process by leveraging modern-day tools. Traffk enables risk bearers to leverage the underwriting process with its data-enrichment technology and integrates and analyzes data to glean insights pertinent to insurance. Traffk works with agents as partners, providing them with the digital tools to work with an efficient sales process and engage consumers with a fast, accurate process for insurance policies, changing the insurance landscape for the better, forever. Visit https://www.traffk.com/