World News | COVID-19 Accelerates No-exam Trend in Life Insurance
Get latest articles and stories on World at LatestLY. Big data is playing a prominent role in life insurance this year.
London, Dec 2 (AP) Big data is playing a prominent role in life insurance this year.
Interest in coverage has surged during the pandemic, but for many people, social distancing mandates took the life insurance medical exam off the table.
As consumers look for quick, noninvasive ways to buy policies, insurers have turned to accelerated underwriting, a process that uses algorithms instead of exams to evaluate applicants.
While accelerated underwriting isn't new, more than a third of life insurers have expanded it due to the pandemic, according to a study by the Society of Actuaries. And no-exam life insurance appeals to many people.
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“They want it to be fast and easy,” says Gina Birchall, chief operating officer for the life insurance trade group LIMRA.
Accelerated underwriting can help you get life insurance quickly online, but there are caveats. What you gain in speed, you may lose in flexibility and price.
Traditionally, buying life insurance was a lengthy process involving bloodwork, urine samples and long waits for approval.
“It was probably the hardest or most difficult product to buy left in the modern economy,” says Brooks Tingle, president and CEO of John Hancock Insurance.
This changed as the world became steeped in big data. Insurers now typically check your prescription drug history and data from the MIB Group, an information-sharing service for insurers.
Companies may also consider non-medical data, such as your credit history, driving record and shopping habits. Algorithms then combine these data points to quickly determine eligibility and cost of coverage.
This data can be tricky to dissect, but industry experts expect the trend to grow. (AP)
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)