The insurance industry is mired in a race to see which companies become the fastest and most digitally advanced as a way to gain new clients and reap in the millions of dollars in potential business left behind by those firms that have not embraced AI and InsurTech. Paul Ford, Co-Founder of insurance platform TRAFFK, explains how this new way of doing business does something the insurance company is not known for: putting the beneficiary first.
Earlier this month, value investor Mohnish Pabrai took part in a Q&A session with William & Mary College students. Q3 2021 hedge fund letters, conferences and more Throughout the discussion, the hedge fund manager covered a range of topics, talking about his thoughts on valuation models, the key lessons every investor should know, and how Read More
Technology Is Changing Life Insurance
(Louisville, KY.) October 19, 2021 - There’s a new race in the InsurTech industry and those who’ve adopted a digital-first mentality are ahead of the game. Insurtech market revenue is expected to reach $10.14 billion by 2025. (1) That’s a 10.80% Compound Annual Growth Rate (CAGR) between 2019-2025. That growth is being seen by companies who embrace digitization and automation as a way to simplify an overcomplicated process. “It’s not enough to rely on software that works for someone else. You have to be able to adapt quickly and do your own thing. That’s why companies who have their own software are already a step ahead,” says Traffk Co-founder, Paul Ford.
The current process used by legacy companies is redundant and takes up too much time. Not to mention the actuarial tables being used are at least 50 years old. These outdated methods disregard how insurance and public health have changed over time. Moreover, reliance on these antiquated data has resulted in class action lawsuits—accusing some life insurance companies of depriving beneficiaries of their benefits due to outdated methods. (2)
The fact that modern insurance companies see a growing need to embrace digitization and improve insurance partnerships is nothing new. However, when these new companies embrace a digital-first platform, they not only connect better with a new generation of policy holders, but they are able to offer more people-centric products. In the long run, they end up doing something relatively new: putting the beneficiary first. Plus, modern life insurance companies that rely on their own technology—rather than using what everyone else is using—will succeed in making long-lasting connections with this new generation of policy holders. “We developed our own software because we know what our clients, and insurance agents, want, and that is an easy, quick, no-nonsense experience,” Ford says
Using AI, insurance companies can now create larger datasets that consider multiple scenarios. That means the software can learn over time and develop instant life insurance quotes that stay up to date with the changing needs of both consumers and agents. Relying on your own technology for improving at-risk insurance enrollment has the added benefit of being more secure.
Growth Of The InsurTech Industry
As Ford explains, the InsurTech industry is growing at a rapid pace. It will be the guiding force for things to come. It’s long past time for the insurance industry to welcome digitization and ensure it caters to the at-risk insurance enrollment to keep from leaving people behind. (3) Updated actuarial tables also mean people deemed too risky for insurance, will be able to get a policy—hence, fortifying the new people-centric attitude.
Guiding people through the process will be easier and more straightforward with the insurance partnership of digitization and agents with the right expertise. This experience will also serve to assure the policy holder they are getting the policy they need, not the one the life insurance is pushing them to buy. InsurTech helps agents focus on what they do best, genuine human interaction.
Whether old legacy companies and their outdated actuarial tables like it or not, digital is the new way of doing business. Society is changing and so are the agents and clients. To ignore those needs is to disregard the potential for growth. Insurance during COVID changed for the better by meeting people where they are. People want and expect things on demand, that includes instant life insurance quotes.
“Most people are shopping online, going to school virtually, or just consuming many things in a digital format,” said Ford. “Having your entire life take place digitally except for insurance doesn’t make sense. Making sure that insurance is in that arena as well means more connected and streamlined experiences.”
Traffk is an innovative insurance underwriting and distribution platform designed to build and launch modern insurance products and brands that scale. With decades of leadership experience in insurance and AI, Paul Ford 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/
- Businesswire “Global Insurtech Market (2020 to 2025) – Growth, Trends and Forecasts” 16 April 2020;com/news/home/20200416005759/en/Global-Insurtech-Market-2020-to-2025---Growth-Trends-and-Forecasts---ResearchAndMarkets.com
- Groom Benefits “Growing Number of Lawsuits Claim “Old” Mortality Tables Deprive Participants of Benefits – An Update” 06 June 2019; com/resources/growing-number-of-lawsuits-claim-old-mortality-tables-deprive-participants-of-benefits-an-update/
- Valuates Reports, “Insurtech Market Size, share, Statistics & Trends Analysis Report By Type, By Application, By Region, and Segment Forecasts, 2021-2027” 2020 April; valuates.com/market-reports/QYRE-Auto-35M2175/global-insurtech