Zurich's Richard Sadler looks at how technical innovations are affecting the way in which people buy protection products.
Pipeline processes
We have already seen that technological improvements have served those with straightforward medical histories, to get cover immediately, very well. But not everyone is so fortunate.
For many customers further medical evidence needs to be obtained before terms can be offered. For a significant minority this can mean a lengthy wait with little improvement to the days of paper applications.
However, the good news is that technology is starting to improve the lot of these customers, too.
Many insurers have improved their pipeline processes, making it easier for advisers to view case progress and take action when needed.
An example of this is Zurich's unique mobile pipeline app, launched in 2014. This allows advisers to view their pipeline on the go, on their Apple devices, providing customers with cover immediately.
We are also seeing increased use of technology to speed up the gathering of medical evidence. Some insurers and distributors are introducing electronic signatures so customers can give consent immediately for their insurer to access their medical records.
And we are seeing technology solutions emerge to help GPs pass medical records electronically back to insurers, reducing a process that often takes a few weeks to potentially just a few days.
All of these changes are making life easier for advisers and speeding up the time it takes for customers to have their policies in place.
Helping more customers to buy protection
As well as speeding up the whole application process and driving down price for many, technological improvements are helping to widen customer access to protection.
In recent years we have seen significant growth in aggregator business, allowing customers who do not have access to advice the ability to buy protection online.
Alongside this, some insurers are making it easy for people to buy directly, by developing similar user friendly application systems.
Conclusion
I have touched on just a few of the technological advancements that have helped to shape and evolve our industry over the last decade or so.
But back to the initial question: have they been a force for good?
What is clear is that speedier and more user-friendly processes have not resulted in more people buying protection.
The number of new-term protection policies sold in 2014 was less than half the amount in 2004 (Source: Swiss Re Term and Health Watch 2015 and 2005).
There are many reasons why this is the case, but as an industry we certainly have not yet fully used the power of technology to drive more sales, and ensure more customers get the valuable protection they need.
Many customers have benefited from the technological developments, which is positive for the industry, although it is clear that there is enormous scope for further improvements.
Perhaps it will be through wearable technology where premiums could be reduced for those with healthy lifestyles.
It may be through enabling customers to get their medical information to insurers quickly and easily, or by using the power of the internet to contact more customers who wouldn't otherwise seek financial advice.
Richard Sadler, head of retail protection development at Zurich
