Life Inforce Policy Management Automation

qtq80-NuJN7e-1024x446

 

November 2019

By: Ken Leibow 

Broker World Magazine

 

It’s finally here—online tools for life insurance agents and clients to do basic tasks like change beneficiaries, look up paid-to-date information, see account values, and address changes without having to fill out a form or call a customer service phone number. It’s no longer a one-off but being implemented by most life insurance carriers today. You are also now seeing Artificial Intelligence (AI) chat tools for clients to get the information on their policies or to answer basic insurance questions on demand. Readily available for agents is new technology leveraging Big Data Analytics to analyze a policy resulting in new sales opportunities with products that better fit your client’s needs.

 

Policy Review
As an agent, you should do a review with your client on their life insurance policies at least once a year. Policy review should also occur when there is a life changing event or a family’s situation has changed, which could result in the need to increase or decrease coverage. Interest crediting rates on certain policies are much lower today than when the policy was first purchased. This can affect the future performance of your client’s policy, which could result in having to pay additional premium dollars to meet your client’s needs. Because people are living longer or if your client’s health has improved, then they may need to make an adjustment on their policy. On permanent insurance like universal life policies, loans and withdrawals and other changes to the policy, like premiums not paid as planned, may have impacted the current performance. Of course, if premiums have increased then you should do a policy review with your client. If the client is an owner or co-owner of a business and that business has grown or changed, then that is a compelling reason to do a policy review. Occasionally a life insurance company’s ratings or financials have changed, which may no longer meet your client’s risk tolerance.

 

The objective of the policy review is to do a thorough analysis of current insurance holdings vs. current needs. There are also industry and product changes to consider as well. I would recommend to carefully look at older life policies because of the way life insurance is designed today—the current changes in pricing, and how it’s medically underwritten, may have a significant difference in 2019 compared to five, 10 or more years ago. Also, you need to be up to date on the current tax, business and estate law changes. Higher life expectancies (mortality tables), lower interest rates and dividend crediting rates affect performance. There are new products on the market today to consider like indexed universal life products. Look at your client’s goals: If their goals are the same, is there a better insurance product for them today? If their goals have changed, then what’s available today to best meet those financial needs? For living benefit needs there are linked benefit products to consider. Should your client consider a way to financially maximize a policy he no longer needs by looking at a life settlement option?

The Insurance Consumer Journey

JornayaLogo_LinkedInV2

By Ken Leibow

 

Jornaya has taken Data Analytics to a new innovative level. “Jornaya Activate” is an application that enables more cost-effective target marketing by witnessing the behavior of the consumer online shopping experience. An example is a Life event whereby a consumer is shopping online for a new home loan or to refinance their current Mortgage. This will identify that the consumer will need more Life Insurance. A Carrier or Agency’s portfolio of customers can be better targeted with marketing campaigns with messages that will be more cost-effective in generating new sales opportunities.

 

Jornaya captures 200 million unique shopping events each month of which 5 million are life insurance related opportunities. This has increased 30% over 2018. Literally there are portfolios of millions of customers. There is NO personal identifiable information captured (PII). Privacy of these consumers is secured. The data criteria captured are focused on witnessing the behavior of consumers filling out online forms for shopping for insurance, mortgages and other activities across multiple websites that can be analyzed to determine specific insurance needs. Jornaya works with Multi-Line Insurance Carriers and Agencies including life insurance Direct Marketers like AccuQuote and eFinancial. I interviewed Jamie Pickles, GM of Insurance at Jornaya, for this article and he had a quote that sums it all up. “A predictive model is great, but facts are better”.

 

Jornaya Activate monitors a portfolio of prospects/customers for Major Life Purchase (MLP) in-market behavior by incorporating intelligence on behavior and measuring intent in Real Time, Jornaya’s innovative technology can Provide intelligence that could become a new sales opportunity for life insurance. If you are a marketer, the data captured will allow you to interact better with your customer and improve customer retention.

 

Download and Read the Report by Jornaya “Understanding the Insurance Consumer Journey” by clicking the button below.

Digital Insurance: Technologies and Strategies Driving Insurance into the Connected Age

insurance_default_0

Mariana Dumont
Head of USA Operations
Insurance Nexus

 

The ability to accurately discern the past and predict the future based on nothing but data points and the experience of actuaries and adjusters has served the industry well up to now. Insurance is, after all, a multi-billion-dollar, truly global industry. While this remains the case, the landscape is now radically different to the past, thanks in part to the advent of the Internet of Things (IoT). The use of these technologies that collect, record and transmit live data has proliferated exponentially over the past decade, and for a data-reliant industry like insurance, the impact has already been profound.

 

They may already seem ubiquitous but estimates of how many IoT devices will connect our cars, homes, communities, medical services and work lives by the year 2020 range from 30 billion[i] to 50 billion[ii]. Whatever the precise number, this will generate (and already is) a huge amount of data to be analyzed and monetized.

 

This increase in the quality and quantity of available data is already producing some significant outcomes; the process of writing policies can now be far better informed by what is known about the risk level of an individual or entity, as opposed to simply what is known about the claims generated by an entire class of risk. Some carriers have already begun this transition; John Hancock, for example, announced in 2018 that all new life insurance policies must henceforth use digital fitness trackers to monitor policyholders[iii]. Using the high-quality, objective data derived from IoT, it is now possible to assess claims more accurately and efficiently, and in some cases, even prevent them from arising entirely.

 

“IoT is already enabling customers to avoid bad things happening to them. Some people call it prevention. I see it as empowerment of customers.” – Nick Ayrdon, Head of Strategy & Development at Aviva

 

In turn, this is changing how insurers interact with customers, both before and after a claim, with one executive predicting that that we are in fact “shifting from a claims-handling business to a claims prevention one”. As the value proposition of exchanging data for value becomes more concrete, it could become a strong pull-factor driving uptake of connected insurance products. And yet, already operating in an environment of squeezed profits, high regulation and low consumer trust, the industry is witnessing something of a perfect storm at present.

 

There is no question as to whether the global insurance industry is going to go digital, and most of the industry understands why it will. The real problem for most is how it should happen and creating an environment in which they can maximize the value of insurance technology. As Michael Lebor states, this is not simply a case of reorganizing a particular department or function: “In my opinion, IoT is not a product, it’s a paradigm shift, a completely different way for technologies to interact with each other. Devices are going to be talking to each other, there are going to be hubs, and we must leverage that throughout the entire lifecycle of our product, whether for distribution, or on-boarding customers, or using it for claims and first notice of claims. It’s not one product, it’s a holistic way of thinking.”

 

Any transformation of this nature will invariably lead to substantive changes in how insurance carriers operate internally and whereas digital insurance projects were generally siloed to innovation departments in the past, executives agree that is starting to change. While the survey found that only 14% of senior management teams were currently affected by the introduction of digital insurance, the most commonly cited reason was that initiatives had not yet reached the point where it had become necessary (the implication being that management will take a more active stance when projects have scaled sufficiently).

 

Similarly, American Family Business Development Manager, Shaun Wilson, suggests “until there are a lot of devices providing a lot of data about specific risks, the carrier is not going to have the insights about whether or not these devices mitigate risks to any level of significance. That’s the promise of this approach, but nobody has enough data yet to validate the hypothesis.” As carriers leverage connected technology more and the impact on the business deepens, however, we can expect to see greater top-down management and involvement from board level stakeholders[iv].

 

To provide a comprehensive overview of the progress and prospects of Connected Insurance, Insurance Nexus have produced the Connected Insurance Report, an in-depth study of the progress of insurance technology globally, today, and in the future.

 

As the industry begins to understand how it can exploit the possibilities of connected and digital insurance, the Connected Insurance Report has crystalized the concerns of those tasked with turning an unprecedented technological revolution into market-ready products. At first glance, one might assume that the ability to learn more about the risks they are insuring should allow both for policies to closely follow the risk over time, and secondly that the ability to gather more information about a claim will discourage fraud. The net result should therefore be greater profit for companies, and lower premiums for their customers.

 

At second glance, it is just as clear that the picture is much more complicated than that. As we talked to more and more executives, it became apparent that the industry is only just beginning to work through the practical problems it faces. Indeed, questions as basic as the best way to install a sensor in a building are still the subject of lively debate. Ultimately, the world of insurance may be next in line for the kind of creative destruction that the tsunami of digitisation had brought to IT, telecoms, media, retail, hospitality, manufacturing, financial and business services.

 

The Connected Insurance Report was researched and produced by Insurance Nexus in collaboration with the IoT Insurance Observatory. It is the first of its kind to conceive of insurance IoT holistically, as a paradigm shift necessitating changes in insurer business models, organisational structures and technology stacks. Insurance Nexus surveyed the experiences of more than 500 insurers and reinsurers to assess where they sit in the connected insurance market and to extract the challenges they face and their stories of success.

 

Along with a panel of 20 industry leaders who have been operating at the sharp end of the IoT revolution, Insurance Nexus looked at these hurdles and opportunities and pulled them apart to provide readers with the case studies with actionable insights to help guide decision-making as the industry tackles its own strategic milestones.

 

 

Tech infographic

 

[i] https://spectrum.ieee.org/tech-talk/telecom/internet/popular-internet-of-things-forecast-of-50-billion-devices-by-2020-is-outdated

[ii] https://www.accenture.com/gb-en/insight-insurance-internet-things

[iii] https://www.bbc.co.uk/news/technology-45590293

[iv] https://assets.kpmg/content/dam/kpmg/xx/pdf/2019/03/insurtech-trends-2019.pdf

Proformex Publishes Analysis of Life Insurance Best Interest Standards

 

PRO-18-001-Logo-Final-tag

Kris Beck Headshot

WRITTEN BY

Kris Beck, CEO

Proformex

 

An In-Depth Look: Best Interest Standards for Life Insurance

Where did they start, where are they now, and where are they going?  “Best interest standards” are regulations that require carriers and producers that sell life insurance to establish criteria and processes overseeing product recommendations given to retail consumers. Under best interest standard regulations, all investment recommendations given to consumers must be made with the consumer’s needs top of mind. The ultimate goal is to protect the consumer and define the ethical duties of agents and advisors selling life insurance. This paper takes a deeper look of how best interest standards have been introduced to the life insurance industry, the various moves made on the state level to legislate these standards, and the future direction of the industry.

 

Download or View the full Article click the Executive Brief Button below:

Connected Insurance Report: Industry Weighs in on Future of Technology in Insurance

Insurance 5 8Lom5vni

To some, it is magic. To insurance, it is reality. The ability to accurately discern the past and predict the future based on nothing but data points and the long-lived experience of actuaries and adjusters has served the industry well up to now, allowing insurance to become the multi-billion-dollar industry it is today. The past few years, however, have witnessed in a dramatic shift to this picture, prompted by the advent of the Internet of Things: technologies that collect, record and transmit live, granular data about their environment.

.

This increase in the quality and quantity of available data is already having some profound effects; the process of writing policies can now be far better informed by what is known about the risk level of an individual or entity, as opposed to simply what is known about the claims generated by an entire class of risk. Consequently, it is now possible to assess claims more accurately and efficiently, and even prevent them arising, based on high-quality, objective data.

.

This, in turn, has created the need for changes in how insurers and customers interact both before and after a claim, as well as the internal structure, operations and hiring processes of the carriers themselves. Already operating in an environment of squeezed profits, high regulation and low consumer trust, the industry is witnessing something of a perfect storm at present. The tools for insurance carriers to stay relevant and appeal to today’s consumer do now exist, but uncertainty over how best to implement such profound strategic transformation is holding many back.

..

To provide a comprehensive overview of the progress and prospects of Connected Insurance, Insurance Nexus have produced the Connected Insurance Report, an in-depth study of the progress of insurance technology globally, today, and in the future. The Connected Insurance Report is based partly on a survey of over 500 people working in insurance and related industries, as well as the exclusive insights of 20 renowned thought-leaders, including Matteo Carbone (Founder and Director of the IoT Insurance Observatory), Cecilia Sevillano (Head Smart Homes Solutions, Swiss Re), Boris Collignon (Vice President Strategy, Innovation and Strategic Partnerships, Desjardins General Insurance Group) and more. 

Access the Connected Insurance Report today for in-depth insights, analyses and case-studies on the technology-led transformation of insurance, including:

.

·     How the Benefits of Technology Confer to Insurance: more data, fewer claims and less costs. Discover how the application of technology to insurance is changing the relationship between insurers and insureds and where extra value can be created

·     The State of Play of Technology in Insurance Today: what progress has been made so far across the different lines of insurance? Which lines are most developed and where is ripe for transformation?

·     The Practicalities of Embedding Technology in Insurance: from proving the business case to organizational restructuring and digital transformation, explore how carriers have demonstrably succeeded in leveraging the benefits of insurance technology

·     Making Sense of The Insurance Tech Stack: Provide value to customers by maximizing the worth of all data throughout the value chain. While challenges to each entity and line of business are unique, discover and overcome the principal challenges to embedding technology as reported by the industry

·     The Long-Term Opportunities: From claims prevention to customer engagement, what will the technology-led future of insurance like? Discover what is on the management “to-do list” to ensure readiness for the era of “insurance 2.0”

.

Access the Connected Insurance Report today

The Connected Insurance Report was researched and produced by Insurance Nexus and is collaboration with the IoT Insurance Observatory. It is the first of its kind to conceive of insurance IoT holistically, as a paradigm shift necessitating changes in insurer business models, organisational structures and technology stacks. Insurance Nexus surveyed the experiences of more than 500 insurers and reinsurers to assess where they sit in the connected insurance market and to extract the challenges they face and their stories of success.

.

Along with a panel of 20 industry leaders who have been operating at the sharp end of the IoT revolution, Insurance Nexus looked at these hurdles and opportunities and pulled them apart to provide readers with the case studies with actionable insights to help guide decision-making as the industry tackles its own strategic milestones.

.

Contact

Mariana Dumont

Head of USA Operations

Insurance Nexus

Phone: +44 (0) 207 422 4369

Toll Free: 1 800 814 3459 Ext: 4369

Email: mariana.dumont@insurancenexus.com

 .

Insurance Nexus is part of FC Business Intelligence Ltd. FC Business Intelligence Ltd is a registered company in England and Wales. Registered number 04388971, 7-9 Fashion Street, London, E1 6PX, UK

.

Insurance Nexus is the central hub for insurance executives. Through in-depth industry analysis, targeted research, niche events and quality content, we provide the industry with a platform to network, discuss, learn and shape the future of the insurance industry.

 .

###