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 https://www.afficiency.com.
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.
Leveraging Data And Analytics To Drive Marketing Success In The Insurance Industry
The use of data analytics and lead distribution tools in life insurance is increasingly gaining momentum, powered by advancements in business intelligence solutions and AI-driven sales technologies. These tools offer significant benefits to both insurance carriers and BGAs. In this article we will explore innovative tools that are transforming the way we analyze and interpret lead data, whether it pertains to insurance prospects or monitoring agent performance.
Staying ahead in today’s highly competitive insurance landscape requires more than traditional marketing strategies. To reach and engage target audiences effectively, insurance professionals must embrace innovative approaches as consumers become increasingly discerning and digital channels continue to proliferate. At the heart of this evolution across the industry lies the power of data and analytics. Harnessing the insights gleaned from data has become indispensable in the quest to maximize marketing ROI and drive sustainable growth.
As a seasoned veteran with 37 years of experience in the insurance industry, I find it imperative to highlight revolutionary solutions that equip insurance professionals to navigate the complexities of modern marketing—especially when some companies are still sticking to archaic and outdated legacy systems. Statistics support the need for constant change—88 percent of
consumers demand more personalized insurance products; 41 percent say they are more likely to switch providers due to a lack of digital capabilities. Industry leaders also realize this, as 67 percent of insurance CIOs say that SaaS will transform the industry in five years or less.1
In this regard, performance marketing automation software Phonexa—one of my partners at InsurTech Express—is a beacon of innovation, empowering insurance professionals to streamline their operations.
A Closed-Loop Approach To Reporting
Accurately tracking and measuring the effectiveness of campaigns remains one of the most significant obstacles insurance marketers encounter. With enterprise-grade tracking software solutions like Phonexa, marketers gain unprecedented visibility into their marketing efforts across various channels, from digital advertising to email campaigns and beyond. These capabilities are essential as insurance agencies focus less on lead generation and instead shift their efforts toward tracking and retargeting leads.
Since sales and marketing teams focus on different stages of the lead funnel, collaboration is necessary to optimize lead retargeting strategies. With sales solely responsible for monitoring a portion of the customer journey, crucial insights regarding lead quality and purchasing intent are obscured, leading to inefficiencies and wasted resources on leads unlikely to convert.
By consolidating data from multiple touchpoints into a single operating platform, Phonexa enables marketers to seamlessly track the customer journey from initial engagement to conversion. This closed-loop approach enhances campaign optimization and facilitates continuous improvement, ensuring marketing efforts align with business objectives.
KPIs to Prioritize
While traditional metrics such as click-through rates and conversion rates provide valuable insights, Phonexa encourages marketers to broaden their scope and focus on holistic KPIs that reflect the entire customer journey. Customer lifetime value, cost per acquisition, and return on investment are invaluable indicators of marketing effectiveness. Each enables insurance professionals to allocate resources strategically and boost profitability.
The importance of personalization in today’s hyper-connected world cannot be overstated. Research indicates that companies adept at personalization yield a 40 percent increase in revenue.2 Phonexa, for one, enables insurance marketers to deliver highly targeted and relevant messages to their audiences using advanced analytics and machine learning algorithms.
Whether by tailoring messaging based on demographic data or optimizing ad placements for maximum impact, Phonexa helps marketers forge meaningful connections with their target customers, fostering engagement and loyalty in the process.
Embracing Data and Analytics
The era of data-driven marketing has dawned upon the insurance industry, presenting challenges and opportunities for forward-thinking professionals. By embracing the power of data and analytics, insurance marketers can gain a competitive edge in an increasingly crowded marketplace. With Phonexa as their trusted partner, life insurance, annuities, and health insurance professionals can accommodate the specific needs of different segments within the industry.
Maximizing the full potential of marketing efforts, driving measurable results, and achieving sustainable growth in the process oftentimes comes down to making a tweak in the tech stack. To learn more about Phonexa’s all-in-one marketing automation solution, visit www.phonexa.com.
Revolutionizing Insurance Sales: The Power of Lead PrioritizerTM
In the dynamic world of insurance, staying ahead in the sales game is crucial. This is where Lead Prioritizer™ comes into play, a groundbreaking tool that is transforming how insurance carriers and brokers/agents approach their sales strategies that is offered through Spinnaker Analytics. Lead Prioritizer™ is a responsible AI solution designed to optimize the distribution, underwriting, and operations processes in the insurance industry. Its primary function is to convert high-priority prospects into placed policies efficiently. This tool is not just for carriers but is also an invaluable asset for brokers and agents.
One of the key features of Lead Prioritizer™ is its ability to assign a likelihood score to each new business prospect. This score helps organizations align their resources effectively, focusing on prospects with higher scores and a greater likelihood of sale conversion. Additionally, it provides action recommendations such as whether a quote should be provided, enhancing decision-making processes. Lead Prioritizer™ operates by identifying patterns in in-house data and augmenting this with external market data. It blends data science insights with management experience to develop actionable recommendations. The tool is equipped with autonomous learning capabilities, allowing it to adapt to the latest market shifts and management actions. This continuous learning ensures that the Lead Prioritization solution remains updated with the best proven techniques, algorithms, and libraries.
A significant advantage of Lead Prioritizer™ is its ability to seamlessly integrate new data that was not available during initial deployment. This flexibility means that carriers and brokers can start using the solution immediately with whatever data they have, bypassing the need for extensive data gathering and infrastructure investments.
Results Delivered
The impact of Lead Prioritizer™ on sales and customer satisfaction is significant. By prioritizing high-likelihood cases, which are often overlooked in traditional workflows, sales growth is driven effectively. For instance, one carrier reported a 20 percent growth in sales after implementing this tool. Additionally, it helps in identifying attractive customer segments, allowing carriers to target leads with a higher propensity to sell.
From an operational standpoint, Lead Prioritizer™ enhances the utilization and productivity of scarce resources and skill sets in distribution and underwriting. It also plays a crucial role in improving customer satisfaction, with one carrier increasing segment profit by 15 percent using this tool.
Lead Prioritizer™ has been successfully deployed across various clients, including carriers and brokers, with a track record of over four years in growing sales. It is implemented on a secure portal, customized to the client’s needs, and can accommodate technical requirements such as AWS or Azure. This integration dovetails with existing management reports, ensuring a seamless transition and operation. Its ability to prioritize leads effectively, adapt to new data, and drive sales growth makes it an indispensable asset for carriers and brokers aiming to stay ahead in the competitive insurance market.
So what are the lessons learned? During a recent deployment, the CEO’s priority was to improve efficiency. However, the underwriters wanted to improve their workflow and distribution wanted to grow sales. While the algorithmic solution addressed all of the above analytically—there was an initial resistance to adoption by various functions. It took off only after each priority was explicitly acknowledged and the solution to achieve that priority was communicated to specific audience/stakeholders. Now everyone at the carrier is happy as sales have increased 20 percent, accompanied by improvements to efficiency and profitability. More importantly, channel partners are happy because now they flow more favorable cases to the client carrier—which is an added plus! This is an important reminder that solving business problems by combining data science with management art and stakeholder priorities is what wins the day for everyone. Visit Spinnaker Analytics to learn more: www.spinnakeranalytics.com.
Reference:
1. https://www.liferay.com/blog/customer-experience/20-must-know-stats-for-insurers-in-2022.
2. https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/the-value-of-getting-personalization-right-or-wrong-is-multiplying.