Digital transformation has long been on the horizon for the life insurance industry, but the last several months have rapidly shifted the market. With more Americans seeking life insurance and using online tools to find it, advisors are quickly adjusting to meet new demand and digitize many of their processes.
Digital technology has vastly transformed nearly every industry, many of which have already adapted their models to ensure future success. For life insurance advisors, though, the two primary ways of delivering policy documents – via paper or electronically – has remained the same for many years.
With technological disruption all around us, it’s a wonder more insurance companies aren’t readying themselves for an assault—or at least some stiff competition. The reality is that innovation is painful. I was part of the disruptive technology scene that occurred in wealth management over a decade ago and I can attest to the challenges and benefits of technology disrupting a highly regulated industry. However, as my business partner, Michael Babikian reminds me, life insurance is a bit different. It requires upending decades upon decades (centuries, in some cases) of processes and redefining a deep-rooted business model. It means overhauling complex infrastructure or investing in an external solution.