Top 2 emerging trends in life insurance modernization

As we move into 2024, we asked some of Bestow's leadership to weigh in on emerging modernization trends in the industry.

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January 4, 2024

Written by

Chelsie Timmins

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The pace of change in the life insurance space is quickening. As we move into 2024, what modernization trends might emerge? We asked some of the leaders at Bestow to weigh in.

Partnerships over vendors

There are numerous software vendors offering lots of highly targeted solutions, but is that sustainable? Here’s what Jonathan Abelmann, Bestow’s President and Co-founder predicts:

"In 2024 I expect we'll see a continued shift away from commoditized point solutions, and toward tech development partnerships as carriers modernize and differentiate. We've seen the amount of gross premium carriers reinvest into tech increase 50% year-over-year, highlighting the bias to action across the market."

Speed to market

The race to leverage new technology and data tools is on, so speed to market will be key in 2024. Bestow’s Sr. Director of Technical Program Management, Sylvia Cento, talked about how partnership approach and product development strategy can make all the difference.

"We recently developed and launched a product for one of our carrier partners. While determining scope and requirements can take weeks or months, we were actually able to begin building foundational tech elements and add flexibility into our platform during that time, which allowed us to move very fast when the project started in earnest. We'd already built out bedrock technology and had a dedicated team, which allowed us to deliver a tailored solution extremely quickly."

There are a lot of trending topics in the life insurance space right now — risk mitigation, cost control, leveraging ai — and while this year will have plenty of uncertainty, here’s one thing you can take to the bank: tackling all these challenges at once will require more than just a single software solution. It will take collaboration with a real partner that has both tech expertise and deep insurance knowledge.

Conclusion

FAQ

Why are deeper collaborations becoming more preferred over traditional software vendors?

Unlike vendors selling point solutions, a more collaborative approach means working closely together to identify solutions that can be tailored to a carrier’s unique needs. This approach ensures better, deeper integration, and long-term value. It also promotes buy-in from both sides to ensure sustained success.

Why is speed to market becoming so important?

Increased speed to market allows for faster product launches and quicker customer adoption. The life insurance market is evolving rapidly, and carriers that move quickly can capture new opportunities and respond to market shifts. Many legacy tech stacks make keeping pace extremely difficult. Bestow’s approach shows that foundational technology built ahead of time enables rapid deployment once the project scope is finalized.

How does Bestow approach product development for carriers?

Bestow begins by building consensus on key problems and their best solutions. At the same time, we’re establishing dedicated teams across organizations before finalizing product scope. This allows for flexibility and rapid iteration once the project is fully defined. By combining technical capabilities with insurance expertise, Bestow delivers tailored solutions quickly and efficiently.

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