The Evolution Of Life Insurance: Embracing Digital Point Of Sales Solutions For A Millennial Market

The Evolution Of Life Insurance: Embracing Digital Point Of Sales Solutions For A Millennial Market

By Ken Leibow - 5 February 2024

In the ever-evolving landscape of life insurance digital point of sales solutions are not just a trend but a revolution, particularly tailored to the preferences and needs of millennials—the central buyers in today’s market. This demographic, aged between 26-45, is driving a significant shift in how life insurance products are designed, marketed and sold. The key to capturing this market lies in blending self-service options with on-demand advisor support, accelerated underwriting processes, and leveraging cutting-edge AI technology.


The Afficiency Model
The move to digitization has been embraced by our industry for some time, with carriers vying to meet the needs of both tech savvy consumers and distribution partners anxious to move with the times. However, it has not always been a smooth ride. For many carriers the transition has been a long and winding road, oftentimes a road that cannot be navigated alone. Some successful life carriers have benefited from leaning on the expertise and nimbleness of the new breed of life insurtechs.

One such insurtech, Afficiency, has the unique advantage of an innovative tech stack combined with a team of talented individuals with a proven track record in digital life insurance deployments.

Understanding the importance of the agent-client relationship and the valued role that the agent plays, Afficiency has always focused their attention on a distributor-first model to deliver a true digital workflow for term, final expense and whole life products with offer rates close to 70 percent and increasing with continued underwriting innovation. These products, along with more advanced products in the pipeline, provide agents and consumers alike with an in-session decision; at times the end-to-end journey is complete in under 10 to 15 minutes. This represents a windfall for agents and carriers looking for high quality risk and keen to expand their business, especially among younger digital natives.

The Afficiency model is based on collaboration between all parties; technology, carriers, and distribution to deliver digital products that address parties’ desire to be in control of their costs and to utilize a scalable platform.

Most recently Afficiency has released the latest version of their eApp, which relies on proprietary API technology and an easy-to-navigate and configurable UI, to bridge agent experience, third party database checks and carrier connections. Guided by the agent, the client is walked through the application to collect and verify their personal data, capture eligibility, health, and lifestyle information before gaining consent via either email or text message. Once consent is provided, the real-time magic happens in the background as the sophisticated underwriting engine kicks into action simultaneously conducting applicant identification checks, implementing fraud controls, and returning a decision while the agent and client patiently standby for an in-session decision in a matter of minutes—and often a decision is returned in seconds.

Should the application proceed to an offer the agent continues the digital journey with their client, adjusting the term and coverage as needed as well as adding additional benefits such as children’s term riders or accidental death benefit rider. The client signature is captured, once again digitally via either email or text message. The client can have the financial protection they need within minutes and the agent has the added security of competitive, next-day commission payment.

Afficiency works with their carrier partners to continuously improve and fine tune the interpretation of the underwriting rules to maximize the outcome for carriers and distributors alike. Such fine tuning includes the recent introduction of a manual underwriting process to the once “fully automatic” workflow. While the overwhelming majority of applications are still decided digitally and within the same session, the refer to underwriter process allows for manual review of edge cases that may have otherwise been declined within 48 hours, further increasing the number of cases being approved.

Another recent enhancement to the Afficiency client journey is the introduction of an underwriting report on declined applications for the information of both the agent and their client. Historically agents have had to make do with the scant and sometimes unhelpful information provided on adverse underwriting decision notifications. By providing more detail on why their client was declined, the agent is armed with meaningful insight and can better advise their client on the most appropriate next steps for protecting their financial future.

In the end it’s about growing the number of families we can help distributors and carriers protect! To learn more about Afficiency visit


The Millennial Influence
Millennials, known for their affinity for technology and convenience, have reshaped the life insurance industry. Their demand for quick, efficient, and hassle-free services has led to the emergence of digital point of sales solutions. Unlike previous generations, millennials are willing to pay higher premiums for life insurance policies that offer speed and simplicity—a testament to the adage “time is money.” The process has become as important as the product itself, with instant issue policies and accelerated underwriting processes gaining popularity.

Speed and efficiency is the new currency. In the realm of life insurance, “time is money” has never been more pertinent. The quicker the process of obtaining life insurance, the more attractive it is to potential buyers. Millennials, in particular, are willing to pay higher premiums for policies that offer speed and convenience. This trend has led to the concept that the process itself has become the product, a significant departure from traditional insurance models.


The Rise of Non-Medical Underwriting
One of the most significant advancements in catering to this need for speed and convenience is the development of non-medical underwriting, often referred to as “Non-Med.” This approach eliminates the traditional, time-consuming medical exams and fluid draws, relying instead on part II medical questionnaires, prescription data, Medical Information Bureau (MIB) checks, and Electronic Health Records (EHRs). This shift not only speeds up the underwriting process but also makes it more comfortable and less invasive for the customer.


AI: The Game Changer in Underwriting
Insurtech companies are at the forefront of integrating artificial intelligence (AI) into the underwriting process. By utilizing AI, these companies can quickly analyze vast amounts of data from medical questionnaires, prescription histories, and electronic health records. This technology enables insurers to accurately score and make informed decisions on policy applications at an unprecedented speed. The result is a more efficient underwriting process, leading to higher customer satisfaction and increased business placement.

The life insurance industry is undergoing a transformative phase, driven by the demands of the millennial generation. The integration of digital point of sales solutions, non-medical underwriting processes, and AI-driven technologies reflects a broader trend towards convenience, speed, and customer-centricity. As digital agencies continue to emerge and evolve, they are setting new standards in the life insurance market, making the process of buying life insurance more accessible, efficient, and appealing to a generation that values both time and technology. The future of life insurance is digital, and it is unfolding now.


Originally posted by: Broker World

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