By Karan Jain, CEO & Founder, Life Simpli —
While the COVID-19 pandemic has caused a rapid shift in consumer needs, habits, and expectations, it also has been a much-required digital catalyst for the insurance industry. Indeed, the industry adopted digitization much earlier, yet it took a global pandemic for insurance providers and customers to truly warm up to the concept of purchasing insurance online. This marks a vast shift in behavior from 2015, when a survey by KPMG found that 72% of Canadians who worked with an advisor felt more confident making a financial decision.
On the provider end, according to a recent global survey of insurance CEOs conducted by KPMG International, 85% of insurance CEOs said COVID-19 has accelerated the digitization of their operations and 78% said that it has turbo-charged progress on the creation of a seamless digital customer experience.
With the emergence of InsurTech start-ups like Life Simpli and accelerated digital transformation by providers like TD and Manulife, insurance today no longer requires unending paperwork and pushy agents and advisors. This shift has also led to companies engaging with a wider demographic including millennials – an audience segment that was overlooked in the traditional, offline approach, specifically to life insurance.
With the assistance of intuitive online life insurance calculators and simplified processes, life insurance today has become as simple as online shopping – just a few clicks, and customers can apply for the coverage of their choice. This has not only facilitated quicker insurance coverage for customers but has also led to insurance providers working hard to digitize the contact center as well as the claim processing – a refreshing change to the tedious and outdated processes that had become synonymous with the industry.
Today, insurance companies are competing to establish simpler and faster processes through their platform. With a shift to e-applications, simplified underwriting, and acceptance of digital signature, the insurance business is no longer a brick-and-mortar business. Advisors today are able to work remotely, meet the client virtually, and advise them without having to set up lengthy, in-person consultations and discussions.
The way things are progressing within the insurance industry, we can also envision more automation and machine learning. The development of complex artificial intelligence-backed software could lead to complete automation of underwriting, compliance, and in some cases even delivery of insurance documents to the client. This will considerably reduce the overall turnaround time.
Another aspect of the business that will improve over time is the standardization of code for the development of online insurance brokerages. With new entrants to this relatively new segment, companies are investing heavily in infrastructure, software, and research & development. Currently, all the entrants to the insurtech segment depend on complex code for their business. As this becomes more mainstream, there will be standardization of processes which in turn will help reduce the reliance on complex code. This will allow business stakeholders to update their offerings more frequently and be able to adapt and implement changes swiftly.
Telematics is another noteworthy change in the life insurance business. Although it has not been as mainstream as it has become in the auto insurance segment, telematics is an impactful solution that is here to stay. A remarkable adoption of telematics within life insurance can be witnessed at Manulife with its Vitality program. Through this program, Manulife offers the Apple Watch to its customers for a low initial payment and gives them a chance to reduce their monthly payments by earning rewards through regular physical activity and exercise. Telematics like these not only encourage healthier habits for the insured but also helps lower claim cost and increase customer loyalty – two very important aspects for any insurance company.
Overall, a constantly evolving digital landscape and a tech-savvy population will continue to transform the insurance industry across the globe. As an industry, we have come a long way and have several innovative solutions that will make the insurance industry more welcoming for both the insurer and the insured.
About Life Simpli
Life Simpli is the simplest way to shop for life insurance and critical illness insurance in Canada. Our unique and easy-to-use web platform serves as an insurance marketplace that allows customers to assess their insurance needs, compare quotes from Canada’s leading insurance providers and apply for the right insurance coverage – all within minutes. We work with Canada’s top insurance providers like Manulife, Sun Life, Canada Life, BMO, Desjardins, Foresters, Equitable Life and more. For more information, visit lifesimpli.com.
Source: Life Simpli