Easy-to-understand and simple online application processes can help to make insurance products, such as life insurance, more accessible.ISTOCK.COM
Since insurance is a data-driven industry, it is no surprise that it is benefiting from greater access to analytics and technology development, which can then be translated into advantages for the consumer, says Doug Grant, partner at Insurance-Canada.ca, a Toronto-based organization that provides consumers and insurance professionals with independent information about technology and the business of insurance in Canada.
The life and health insurance industry, for example, is becoming more focused on digital tools, which can enable lower friction costs and a better customer experience. “As more consumers become comfortable with, or even prefer, digital services, the industry is actively increasing them,” says Mr. Grant. “For example, my wife and I have different group health benefit plans. My dentist electronically submits the bill to my insurer; the response provides enough information to submit paper copies of any costs not reimbursed to my wife’s plan. Reimbursements are automatically deposited and we receive notifications by email.”
A good number of life and health insurance-related products and services now focus on providing plan members with up-to-date health information to help them manage their health risks as well as steps to take for an effective recovery after an injury or illness,” he says. “This proactive approach is a big trend that is evident across the insurance industry.
The whole process is digital, except for one paper submission, he summarizes. Digital engagement can also facilitate timely interactions between agents, brokers and customers, which can further enhance both service and value proposition.
Easy-to-understand and simple online application processes are designed to make insurance products, such as life insurance, more accessible, says Mr. Grant. “The Co-operators just introduced Term Life 1, a new term life insurance option that can be purchased directly online,” he explains. “Until now, the application process for life insurance was typically more lengthy and involved requirements such as screening and medical testing for the majority of applicants, but insurance providers are actively streamlining the process.”
Since digital transformation allows increased access to both internal and external data and research, for example health and life expectancy statistics, insurance providers can have a better and more nuanced understanding of risks. Beyond leading to cost efficiencies, this can also allow them to encourage group plan members and individual policy holders to be proactive about their health and well-being, says Mr. Grant, who has also noticed an increased focus on mental health.
This content produced by Randall Anthony Communications. The Globe’s editorial department was not involved in its creation.