The Future of Automation in Life Insurance

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The Future of Automation in Life Insurance

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There are really four areas of technological revolution happening together and at once to reshape the industry: automation, artificial intelligence (AI), big data, and cloud. Combined and intertwined, they mark the current disruption that shapes any discussion on the future in life insurance

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Cloud computing has been around since the 1960s, though only adopted for mainstream use in the last twenty years. Widespread cloud acceptance means uninterrupted access to data. If you think about it, this mirrors the same timeline for many types of records and databases. Twenty years ago, most medical records were not even electronic; the big push was to get industry-wide acceptance of electronic medical records by 2014. Constant access is a new phenomenon.

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Big data means we have more complex data sets from new places. More connected devices in the world means more data. Think of late generation devices and the data they collect: exercise wearables, fitness apps, smart TVs, smart vehicles, and even surgically implanted medical devices collect information about you. The implications for the insurance industry are undeniably massive. Insurance companies will be able to leverage data assets for strategic decision making, sometimes in real time. Constant access to next-level data offers insurers new insights into risk mitigation, and new avenues to recognize and seize opportunities.

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Such opportunities may be just in time to address generational challenges. Millennials have shown a general unwillingness to buy life insurance. Not only that, but they are less likely to join the insurance workforce. Millennials prefer the more lucrative tech-jobs.

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Part of the reason why is that legacy industry entry-level jobs had long been filled with mundane, repetitive, routine-type tasks – the very same jobs that are being replaced by a combination of AI and automation. Underwriting is a perfect example. The job has traditionally required repetitive, time-consuming, manual processes that once provided a small army of young professionals with industry experience. Underwriting was a paperwork-laden task. Today, the desire for fast decisions combined with 24/7 access to increased data sources means the role can be performed electronically and instantly. It’s not uncommon for the technology firms that service insurers to process 19 out of 20 insurance applications immediately and without any human intervention.

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Digital transformation across the industry has delivered business agility but transforming has been more about survival. 44% of policyholders surveyed in 2019 stated they would change carriers if they couldn’t access and service their account electronically.

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The future of life insurance involves a heavy dosage of the same four ingredients: automation, AI, big data, and cloud working together to provide new growth opportunities with the same old-world concept of security. Look for more data, increased reliability, and immediate decisions made with less human intervention.

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Ushering the industry into tomorrow are technology and automation firms like Management Research Services (MRS). MRS helps carriers streamline their application system with their no-code platform. Underwriting decisions can be made in just moments and at the point of sale. With voice and electronic signature capability, the MRS system allows for a time-to-issue of just a few minutes. For carriers seeking a technology partner that provides AI-based automated insurance services and solutions, learn more at www.managementresearchservices.com.

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