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From the Learning Center

Winning the Digital Arms Race in Life Insurance

By Lena Chukhno·January 31, 2023·3 Minute Read

In this Article

Happy New Year! We’re resolving to help more carriers reach their modernization goals in 2023. If you’re watching the life insurance landscape like we are, you know today's customers demand an experience that reflects efficiency, differentiation, and innovation. The key to all three, in our humble opinion, is to start with the right end-to-end tech solution. In this month’s newsletter we talk about underwriting rules ownership and the importance of speed to market. If you’d like more information on any of the content below, please email me at [email protected].

Q & A with Paul Rasmussen, Head of Partner Success 

Q: If I use Bestow’s underwriting tech, can I still use my own rules?

A: Yes. With Bestow, you don’t have to compromise your carefully chosen underwriting approach. The product is ultimately on your paper, so you maintain full control over rules, data sources, and risk tolerances. We’ll bring insights we’ve gained from our own market participation, then work with you to develop digital underwriting that works for you, your agents, and your customers.

Featured: Time to Market Matters

You cannot divorce modernization conversations from speed-to-market concerns in any industry, but particularly in the ultra-competitive life insurance market. There are a few reasons carriers should consider implementation timelines in the vetting process.

The first is that the insurance industry is in an arms race to modernize, and the first major carriers to fully digitize from quote to claims will gain an important foothold in the marketplace. They’ll be better positioned for key partnerships and poised to gain market share among Millennials and Gen Z, two groups representing 53 million consumers (and growing) with a life insurance need gap, according to the 2022 LIMRA Insurance Barometer Study.

In a report titled Digital Disruption in Insurance: Cutting Through the Noise, McKinsey predicted the winners in the life insurance space would be those who moved quickly and decisively. They drew comparisons to digitization in the P&C space.

Notably, “those companies that initiated disruption fared best, generating revenue and earnings growth that was on average between one and two percentage points higher than that of more ad hoc responders.” While making allowances for the more complex business of life insurance, McKinsey added that given the impact of tech disruption in insurance, one would be “foolhardy to bet against it.”

Finally, the insurance industry will continue evolving at an accelerating pace - modernization is not a “one-and-done.” Carriers who want to remain on the cutting edge need to be able to iterate quickly, respond to market changes, and bring innovations to market rapidly to remain relevant and competitive.

Partnership with a tech company that has brought modernation to market before is likely the most efficient and cost-effective path for most carriers - and why case studies, demos, and road maps are some of the most critical parts of an RFP.

Find out what Bestow’s proven SaaS can do for you. Reach out to [email protected] to set up a demo today.

Let’s Connect

We’d love to meet in person. If you’re attending any of the following events and would like more information about the Bestow SaaS and Marketing technology solutions, contact [email protected].

Feb 26 - March 1

ReFocus Conference, Las Vegas

President and Co-Founder Jonathan Abelmann & Chief Insurance Officer Jeremy Bill