When Technology Needs a Human Touch! A Commentary on Web-Based Life Insurance Platforms
We keep seeing advertisements for “tech-enabled brokerage” like the one below, where Modern Life promotes their high tech-enabled platform.
I applaud firms that have developed and embraced technology and are changing the dynamics of how consumers buy life insurance. It is great marketing and likely effective from an investment and return standpoint, otherwise, they would stop running the ads, right? However ….
Everyone is tech enabled these days, that is table steaks. If a Brokerage General Agency (BGA) has not adopted some form of web-based electronic quoting and submission platform, most advisors who provide insurance guidance would probably not want to work with them.
There are a multitude of electronic quoting and application submission platforms online and most BGA’s offer access to them on their websites. AgencyONE uses two of them for the most part, including IPipeline’s iGo system, which is the benchmark for the industry and Vive & Vive Client Portal, which is now owned by Hexure, the developer of Firelight, which is the equivalent technology for the annuity space. Some companies have their own systems, such as PorchSoftware.
AgencyONE has been working with mass affluent, high and ultra-high net worth clients of advisors for over 30 years. As we travel the country meeting advisors that serve this marketplace, from dedicated insurance professionals to financial planners and investment advisors that dabble in life insurance, we hear one thing – “all I want is someone to pick up the phone and give me accurate information and guidance so I can get my clients through underwriting with a carrier and insurance solution that is in their best interest”.
The question that needs to be asked concerning these platforms is “what happens when a quote is provided and either an advisor or a client submits an electronic life insurance application to a carrier?” Many times, the process is seamless, and insurance can often be underwritten, approved, and issued by computer algorithms. The first step, however, is a client health interview, otherwise known as Part II of the application, where medical history is obtained directly from the client. This can be done online via an electronic interview, or it can be done via a telephone interview, through a third-party service or an insurance company employee.
The ensuing processes, which happen at the insurance company, by the way, NOT at the brokerage agency, include:
- pulling data from the Medical Information Bureau (MIB);
- obtaining a motor vehicle report from the Department of Motor Vehicles (DMV);
- running a prescription check from multiple databases available; and
- possibly getting a LexisNexis report.
These processes are generally limited by age and face amount applied for, but in general think up to age 60 and up to around $3-$5MM of death benefit. The throughput or success rate varies carrier by carrier, but it works approximately 40-60% of the time. What happens the rest of the time?
Sometimes the solution is as easy as having a human underwriter look at the data collected and make the underwriting decision. This could take minutes or could be a 24-to-48-hour process.
More often, the first requirement from the underwriter is to obtain medical records from the client’s attending physician’s office. Frequently this can be done through Electronic Health Records (EHRs) and can be accomplished quickly. If the data is not available via an EHR technology provider, it might be possible for a client to obtain their records through their doctor’s patient portal.
Finally, if more information is still needed, the underwriting company may request a blood and urine sample, physical measurements, and other testing. Of note, many doctor’s offices do not test for things like nicotine derivatives or other substances such as recreational drugs. Furthermore, there are blood analytics that many insurance companies request from the lab that most doctors do not request in a normal physical exam, such as NT-proBNP, which is an indicator of heart health.
Underwriting can be a messy business and requires more than just a tech-enabled submission platform to obtain the needed insurance. You need a Brokerage Agency that is qualified to handle those cases that GO OFF THE RAILS. AgencyONE is uniquely positioned to offer just that. We pride ourselves on communication and are involved with our AgencyONE 100 Advisors every step of the way.
We operate as your back office and are an extension of you and your business. Our case managers possess years of experience in new business processing, have deep product knowledge, understand carrier protocols, and manage your cases with diligent follow-through and exceptional customer service.
AgencyONE’s in-house underwriters possess expertise in managing insurance capacity, approach each case with specialized and individualized handling and consistently deliver the most competitive underwriting offers available in the marketplace. We identify potential issues up front, evaluate carrier “perception of risk” and assist in preparing your client for the carrier underwriting process. AgencyONE’s underwriting advocacy paired with keen medical knowledge, long-standing carrier relationships, and astute negotiation skills will position your clients’ cases for success.
While the most up-to-date technology is required for the operation of any present day business, it cannot replace the need for human involvement. A professional human “touch” remains critical to the successful running of a modern, independent insurance Brokerage AND the specialized handling and strategic placement of your cases.
Please contact AgencyONE’s Marketing Department at 301.803.7500 for
more information or to discuss a case.