TMCnet Feature
January 11, 2021

How Technology Has Changed Life Insurance Industry

Technology has changed many industries, and the world of insurance is no exception. From making your purchase online to better underwriting processes, technology has improved the industry for both customers and insurers.

Buying Policies Online

In the past, the insurance industry was highly localized. Many got policies from local insurers, but technology has changed that. Today, things are more global, and the companies in your town do not limit you. That makes it easier to shop around to find the best prices. Many companies have websites, and you can also view sites of different agents. With the internet, you have more options than in the past. That is good for everyone involved.

Before choosing a policy, however, you should do your research. The internet has also facilitated that process. One thing you’ll want to research is how to cash in a life insurance policy in case you find you someday no longer need the coverage. You’ll also want to explore how much you need and make sure you get a policy from a reputable company. It is a good idea to avoid getting more coverage than you need since it will cost you more money.

Easier Claims Processes

In the past, many insurers lost money because of the claims process. But technology has changed that since some companies can make money from the process. They have done that by making things more efficient. For instance, many claims forms are pre-populated with customer information, so clients do not have to spend much time on the form. Agents can also give customers real-time updates.

It is easy to send electronic payments instead of a check in the mail. But one of the most critical aspects is reporting problems. Clients can send real-time information about issues that might arise with the claim as soon as it happens. The claims process is more accurate and efficient than in the past. Many insurers feel the claims process is one of the most critical aspects of their business. There will likely be future advances as companies find new ways of using technology. That is excellent news for those with insurance policies.

Underwriting and Big Data

No matter the type of life insurance, the heart of each company remains the same. Sales brings money in, while claims take funds away. To be successful, an agent has to get more money than the company pays to clients with claims. That makes big data an essential asset for every agent. Today, big data is useful for offering accurate quotes, and the process is faster than in the past. Agents can look over clients’ health history and other information before beginning underwriting. That way, each client gets a customized policy, which is fair compared to other methods.

With technology, some companies might be able to offer healthier customers discounts. For people who do not mind sharing their information, a company might offer a health fitness tracker. That way, the business can verify the individual’s health status. An individual has an incentive to make better lifestyle choices.

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