(Digital Insurance) - If you've tried to purchase life insurance and been turned off by the lengthy analog process, I don't blame you. Removing barriers to coverage is why we've worked so hard to bring this essential product into the 21st century with an all-digital platform.
One of the most exhilarating parts of that innovation journey has been underwriting. Underwriting depends on data, and data—how we source it, how we analyze it, and how we use it—is evolving at an exponential pace. With things moving so fast it's important to pause to acknowledge how far the industry has come, and ponder where it might be going.
The initial phase
Underwriting—the concept of which goes back many centuries—began to slowly evolve in the 20th century, with additional health and risk classes added beyond the initial one of age. The smoker/non-smoker designation that appeared in the '70s, along with advancements in blood drawing in the '80s, provided a more accurate risk assessment. But the administration of underwriting still included in-person appointments and hand-written paperwork, with a hefty price tag for labor costs and lab testing.
By Jamie Hale
December 21, 2022
