9 August 2017 07:00
Life insurance policies with full underwriting vie with the fonts issue simplified the title of fast product to obtain. To woo young consumers, players traditional shorten their deadlines thanks to the Web, and artificial intelligence.
A growing number of insurers eliminates urine tests and blood for amounts of insurance higher and higher. IA financial Group and Desjardins financial Security have joined this rally in the past few weeks.
With the launch of the platform EVO in may, iA has eased its medical requirements for clients aged 50 years and under who wish to subscribe to a life insurance where the sum insured is less than 500 000 $. These customers no longer have to submit blood profile, results of vital signs, or urine analysis. In addition, the tests electrocardiogram (ECG) and the ECG in the effort, both in insurance life and critical illness insurance, are no longer required for all age groups. The platform also helps to accelerate and simplify the process through a pricing engine and automated the use of the electronic signature.
During an interview with the Journal of insurance alongside its annual general meeting on 11 may, the CEO ofiA financial Group, Yvon Charest talked of the advances that have led the insurer to lancer EVO. It is a platform that allows almost half of the clients to join instantly at the point of sale, all the products of life insurance, critical illness and disability ai. The only case of its life insurance product to issue simplified Access to Life, which will be built-in to EVO later.
Under the new system, nearly 50 % of all insurance proposals can be accepted at the time of signature. The average time of a transaction of insurance goes for these people to «32 days to a second,» said Mr. Charest. The platform offers pricing that adapts to the state of health of the client.
The candidates eligible for the fast track will be primarily those that require an amount of insurance of $ 500,000 or less, and whose state of health is above average. «Within two years, we anticipate that the software will be advanced enough to accept up to 75 % of applicants instantly. «
The software is based on several years of data subscription. «We are second seller of life insurance in Canada, in terms of the number of fonts. This made a lot of proposals have been accumulated since years. Before, we had no system to analyze and digitize these data. We have also create a post of vice-president and head of analytics and data, » said Mr. Charest. Vice-president from the subsidiary Industrial Alliance auto and home, François Blais is now occupying this position.
Trend in the entire industry, the acceleration of the underwriting process meets an important change of mentality, and is reflected in all sectors of activities, said Mr Charest. «The process has accelerated in many sectors, including group insurance, where the claims processing system is very fast, which creates a pressure so that people want more and more immediacy,» he observed.
EVO will be evolutionary, has added the CEO of the iA. «It will be an example of the application of artificial intelligence. All the information in the system is digitized and easily accessible. It will allow us to know how any changes we may make to our standards of pricing of risks affects our experience of mortality. «
Desjardins Insurance has also made the jump in may to a subscription to the lean. The insurer is said to have simplified and accelerated the issuance of the contracts. As well, Desjardins has eliminated a number of requirements selection in order to make its life insurance contracts more quickly. There will be fewer analyses of blood and urine, and less of electrocardiograms.
Desjardins will do all of this without the use of analytics, said in an interview with the Journal of insurance Nathalie Tremblay, product manager, life and health, development and marketing of the subsidiary of the Desjardins group. «We have revised our model of risk-selection, without the change. We focus more on the medical questionnaire on the outcomes of the tests, which has the effect of reducing the time limits. «
The blood tests and urine have been eliminated for customers of 40 years old who take out a coverage amount up to $ 500,000, she said. Ms. smith added that the lack of these tests has a prevailing effect also with customers of 41 years to 45 years, for amounts of insurance below $ 500,000. The electrocardiogram disappears of applications for life insurance up to an amount of five million dollars.
In the traditional products without reviews, the underwriter may ask for a report or a review based on the responses to the proposal. Ms. smith believes, however, that Desjardins is often classified among the least severe. In a comparison with its two main competitors, Ms. smith has discovered among others that Desjardins group ranks as the insurer offering the best terms, without any tests of urine or blood, for insured persons of 18 to 50 years, for amounts of insurance of $ 250,000 to $300,000.
In addition to the elimination of tests, Desjardins also provides its advisors with a guide that is accessible through the Intranet, which allows the adviser to predict the effect of a risk on the conditions of emissions to the police of his client. More than 40 medical risks non-medical and are listed there. It is possible to estimate the additional premiums, depending on the case. Thanks to the intranet access, the information will be accessible at all times instead of 9 a.m. to 5 p.m., said Ms. Tremblay. It may, for example, allow an advisor to tell a client diabetic what are its chances of being accepted for disability coverage, she adds.
An appeal reduced
«The market tends towards products that are more exclusive, with a period of emission is so short that they will reduce the attractiveness of products to show simplified,» says Ms. Tremblay. The need for a contract of insurance to issue simplified will remain. The typical product is more expensive for coverage that can never match the quality of a product with full underwriting. «
Ms. smith believes that the trend will grow. According to it, the insurers want to adapt to the new generation of consumers.
«It is necessary to think of the younger generations who buy everything by the Internet and expect to receive their order in 48 to 72 hours. Wait 32 days for the insurance are not interested. «
Player niche active in the products at issue simplified traded on the Web since January 2013, with Insurance, without medical examination (FOL), Humania Assurance has made the leap into the subscription accelerated product risk selection complete in October 2016, with HuGO. Its CEO, Stéphane Rochon, think that the two products represent two different ranges which each have their place in the market. People living with HIV, who have suffered several heart attacks or have a record of impaired driving will continue to go to the products simplified, he believes.
The Web has facilitated the process of issuing simplified, » added Mr. Rochon. «The products at issue simplified have been adapted to the Web more quickly, because they had less medical issues. When we started with Insurance without a medical exam, we took bigger risks than with a traditional product, » said Mr. Rochon. The rate is, however, adjusted accordingly, for example, two times more expensive than a premium on a regular basis in some cases aggravated.
The launch of HuGO in October 2016 has been a big step forward, says the CEO of Humania Assurance. It is part of a trend where insurers come to accept instantly an applicant, at a regular price. «The true challenge of the traditional product on the Web is not to create an electronic application. It exists since 20 years. The key is in the algorithm that makes the decisions, » said Mr. Rochon. For example, the platform HuGO connects to the central medical information MIB, from the beginning of the transaction. «The more complex is to interpret this information. It is necessary to adapt the questionnaire instantly to a refusal for such or such a condition, and then change the customer experience in real-time. «
The transaction can take 15 minutes for someone who has no record at the MIB so that it will stretch to 45 minutes for the one who has it. «To reduce the delay of 38 days in one or two days changes the experience of clients and counselors significantly,» he said. If the general agent receives a proposal for term life insurance ten years ago, there was a cost to the deal with of the human and of square feet of office. If HuGO the deals instantly, the office of the adviser to realize a gain of efficiency very important. »