It is not coincidental that LIMRA recently released a study indicating that 30 percent of U.S. households lack life insurance coverage at the same time that MetLife announced its decision to spin off its sputtering life insurance business.
Digitalization and the spread of the internet and mobile technology have impacted a number of industries in recent years, often transforming them beyond recognition. There is little doubt that technology will have an enormous impact also on the insurance industry over the next decade, across the value chain from product development and underwriting through to distribution, services and claims. In the near term, the largest impact is likely to be on underwriting and distribution.
The New York Times was struggling online. While the quality of its journalism was not in doubt, the company’s digital business was shrinking, as measured by subscription numbers and advertising revenues. A “new ideas task force” was formed to address the challenges the news organization faced; fortunately, for us at least, their conclusions were leaked online in 2014.
Two in three life insurance companies responding to a LIMRA survey in the U.S. and Canada have implemented automated underwriting for at least part of their business and another 32 percent are in the planning stages of implementing automated underwriting, according to a new LIMRA study.
A multidisciplinary revolution is underway that bridges advances in IT, medical science and underwriting.
Recently, the jobs website CareerCast.com completed a study and published a list of the “10 Most Endangered Jobs of 2015." Right there at position #9 is the good ol’ insurance underwriter, with streamlined processes cited as the main culprit.
This interview with Joe Gilmour appears on page 26 in the latest issue of the SOA’s Product Matters newsletter. Also featured in this issue: Underwriting Issues and Innovation (page 17).
https://www.soa.org/news-and-publications/newsletters/product-developmen... (articles appear in June 2015 issue)