Digital Transformation In Life Insurance: Lessons From Assumption Life’s Success

While researching innovative strategies in the life insurance industry, I came across an insightful case study detailing Assumption Life’s transformative journey. The lessons from their success hold valuable implications not just for Canada but for the U.S. life insurance market as well. Inspired by their approach, this article explores the key takeaways from their case study, demonstrating how life insurers in the United States can apply these insights to thrive in a competitive landscape.

In the rapidly evolving landscape of life insurance, companies face mounting pressure to innovate and adapt. Changing consumer expectations, restricted distribution methods, and operational inefficiencies compel life carriers to rethink traditional strategies. Assumption Life’s journey offers a compelling case study on how embracing technology and strategic partnerships can drive growth and transformation.

As the first Canadian life insurer to digitalize within the brokerage network, Assumption Life leveraged technology to address key challenges, redefine its operations, and deliver exceptional results. This article explores their journey, lessons learned, and the broader implications for the industry.

The Challenges Facing Life Life Carriers Today
For mid-market life product life carriers like Assumption Life, the competitive landscape presents unique challenges:

  1. Changing Consumer Expectations: Modern customers demand speed, convenience, and personalized solutions. Traditional advisor-led sales often fall short of meeting these expectations, requiring life carriers to explore alternative online models.
  2. Limited Distribution Reach: Regional restrictions and an over-reliance on advisors can limit market penetration, particularly for mid-market consumers often overlooked in traditional channels.
  3. Operational Inefficiencies: Manual processes in compliance, policy applications, and customer service increase costs, cause delays, and risk errors.
  4. Customer Experience Gaps: A fragmented journey from policy selection to issuance can alienate potential clients, making seamless user experiences a critical success factor.

Assumption Life recognized these challenges and took proactive steps to address them.

The Role of Technology in Addressing Distribution Challenges
Assumption Life’s collaboration with Lavvi, a digital distribution platform, marked a pivotal shift in their approach. Lavvi’s API-driven platform provided Assumption Life with the tools to enhance partnerships, expand reach, and streamline operations.

Key Innovations Implemented:

  1. Integrated Digital Partnerships: Lavvi’s platform enabled Assumption Life to integrate seamlessly with other life carriers, financial institutions, and distributors. Partnerships with organizations like Blue Cross Life (BCL) and Better Mortgage Insurance allowed Assumption Life to bundle products and tap into new markets.
  2. Data-Driven Insights: The platform provided Assumption Life with robust consumer analytics, enabling tailored product offerings and data-informed strategies.
  3. Operational Automation: Automating compliance and application processes minimized errors, improved efficiency, and freed up resources to focus on core competencies.
  4. Enhanced User Experience: Lavvi’s intuitive platform created a streamlined consumer journey, from browsing to policy issuance, leading to higher conversion rates and customer satisfaction.

Outcomes: Quantifiable Successes

The results of Assumption Life’s digital transformation are nothing short of extraordinary:

  • Revenue Growth: A 231 percent year-over-year increase in individual life insurance sales through online channels.
  • Market Expansion: Access to new regions, including Quebec, with five new branches of business.
  • Higher Conversion Rates: A 300 percent increase in bundling rates and 30 percent consumer conversion from partner websites.
  • Improved Customer Satisfaction: A seamless, user-friendly checkout process resonated with modern consumers, enhancing brand loyalty.

Assumption Life’s strategic focus on distributors as partners, rather than competitors, has been central to its success. By empowering distributors with digital tools, they created a win-win ecosystem where all parties thrive.

Key Lessons for the Industry
Assumption Life’s journey underscores several critical lessons for life carriers:

  1. Partnerships are Key
    Building partnerships with distributors, InsurTechs, and other carriers can unlock untapped revenue streams and market access. Assumption Life’s ability to integrate its products into distributors’ offerings allowed it to amplify its reach and meet consumers where they are.
  2. Data is a Game-Changer
    Consumer data isn’t just a byproduct of operations—it’s a strategic asset. Insights derived from Lavvi’s platform enabled Assumption Life to tailor products and proactively meet evolving customer needs.
  3. Technology Drives Efficiency
    Digital platforms simplify complex processes, reduce errors, and speed up time-to-market. Assumption Life’s automated processes illustrate how operational excellence can lead to tangible business results.
  4. Customer Experience is Paramount
    Today’s customers expect seamless, fast, and intuitive experiences. Life carriers who invest in user-friendly platforms not only improve conversion rates but also build lasting relationships.

Implications for the Future of Life Insurance Technology
Assumption Life’s success provides a roadmap for other life carriers navigating digital transformation. As technology continues to reshape the industry, several trends emerge:

  1. Hybrid Distribution Models
    Combining advisor-led sales with digital platforms creates flexibility and broadens consumer access. Hybrid models allow life carriers to serve diverse demographics without alienating traditional advisors.
  2. Embedded Insurance
    Partnering with non-traditional distributors—such as financial institutions or mortgage providers—enables life carriers to embed their products into everyday transactions, making life insurance more accessible.
  3. AI and Automation
    Artificial intelligence will further streamline underwriting, claims adjudication, and customer interactions. Automating repetitive tasks enhances efficiency and frees up human resources for higher-value activities.
  4. Regulatory Adaptation
    Navigating regional regulations requires flexible platforms capable of automating compliance. Digital tools like Lavvi’s can help life carriers adapt to local requirements without sacrificing efficiency.

A Blueprint for Success
Assumption Life’s journey is a testament to the power of aligning business goals with technological solutions. Their remarkable growth—achieved through strategic partnerships and digital innovation—offers invaluable insights for the industry.

In an era where buzzwords like “digital transformation” often lack substance, Assumption Life stands out as a practical example of how technology can solve real-world challenges. Their ability to expand reach, optimize operations, and enhance customer experiences is a blueprint for life carriers seeking sustainable growth in a competitive market.

By placing distributors at the center of their strategy and embracing technology, Assumption Life has demonstrated that when distributors succeed, the benefits cascade to end consumers, creating a holistic cycle of growth and satisfaction.

As Luc Bossé, VP of Sales & Marketing at Assumption Life, aptly puts it:
“Allowing the Lavvi team to lead the build of our digital distribution platforms for our distribution partner strategies has allowed our internal teams to refocus on backend systems and processing. We’ve seen a 231 percent increase in online sales year over year via our distribution partners’ direct-to-consumer solutions, and that number is still rising!”

For life carriers looking to navigate the challenges of the modern market, Assumption Life’s success story offers a clear directive: Embrace digitalization, foster partnerships, and prioritize the customer experience. The future of life insurance lies in transformation—and those who adapt will thrive. To read Lavvi case studies visit https://lavvi.com/resources.

Ken Leibow is founder and CEO of InsurTech Express. He brings more than 36 years of insurance industry experience with an extensive background in insurance technology for distribution and back office systems.

Prior to founding InsurTech Express, Leibow worked for Genworth Financial, Mutual of Omaha, and as vice president of operations at Diversified Underwriters Services, Inc. As COO of Integrated Insurance Technologies, he built the largest life insurance data exchange hub in the industry, processing over one million policies per year and $30 billion of annuities (now owned by Oracle, Inc.). Some of the key initiatives he implemented include innovation in quoting and illustration tools, CRM’s, agency management systems, eApp platforms and ePolicy Delivery for long term care, life insurance and annuities.

Leibow is a leader for industry technology standards, working with ACORD, LDTC, LIDMA, NAILBA, LIMRA, LOMA and IRI. In 2019, he was appointed to sit on the ACLI Innovation Committee. He is on the ACORD Life & Annuity Program Advisory Council and won the ACORD Leadership Award in 2022 and ACORD Community 50th Anniversary Award in 2020. He is a past winner of the NAILBA Chairman’s Award and NAILBA’s ID20 Award. In 2022, he was the winner of the LIDMA Innovation Award.

Leibow can be reached by telephone at 402-740-7356. Email: [email protected].