COVID-19 has had some unforeseen side effects for life insurers. This market segment historically lagged its peers in property/casualty in digital and analytics capabilities, and life insurers must now rethink both. InsureTech startups may be able to provide some relief and quick wins for insurers, whether through partnerships or lessons learned.
Life insurers have long sought to underwrite medical insurance without requiring medical exams. The pandemic made this a priority. Some startup distributors like Bestow and Ladder Life are tackling fluid-less underwriting on their own, offering direct online applications and issuance without a medical exam. Insurers may be able to learn from these startups or partner with them for distribution.
Other InsureTech startups are providing data and analytics capabilities to insurers to enable fluid-less underwriting. Take Human API, a startup that provides medical data with client permission. Human API recently partnered with Principal to help circumvent paramedical exams.
Beyond underwriting, the pandemic is forcing life insurers to confront new realities in consumer behavior. As Novarica VP Eric Weisburg wrote, COVID-19 has broken insurer predictive models. Startups may be able to provide insurers with real-time analytics to understand the propensity for churn and sales potential. Atidot, for example, entered a partnership with iPipeline to provide predictive analytics models to help Pacific Life adjust pricing and distribution based on current market conditions.
Insurers were already rethinking processes that rely heavily on humans; COVID-19 just accelerated these transformations. InsureTech startups may be able to position themselves as partners during this transition; insurers may, in turn, be able to bring new technology in-house relatively quickly and affordably.
You’ll find more information on startups tackling digital and analytics capabilities for life insurers in our InsureTech industry report, InsureTech for Insurers: 200 Startup Profiles. Novarica will also be releasing an update in September that contains 250 profiles.
As always, feel free to get in touch with me or Novarica EVP Jeff Goldberg if you’re interested in discussing InsureTech trends and the current landscape. You can reach me at [email protected], and Jeff at [email protected].
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