Almost half of Americans (47 per cent) say they are more likely to buy life insurance using simplified underwriting, versus traditional underwriting approaches, according to new findings from the 2019 Insurance Barometer Study.
The Insurance Barometer Study tracks the financial perceptions, attitudes and behaviours of consumers in the United States, with an emphasis on life insurance. LIMRA and Life Happens, a non-profit educational organization, jointly conducted the study.
To broaden their reach and address declining ownership numbers, many life insurers have leveraged advances in technology, like advanced analytics, Big Data and artificial intelligence, to streamline the underwriting process and better meet the needs and preferences of today’s consumers.
Simplified underwriting, which generally means getting coverage more quickly and without a medical exam, may impact a consumer’s likelihood of buying life insurance, according to the study.
Speed and ease of simplified draws clients
The study found that nearly two thirds of those who are interested in purchasing life insurance through simplified underwriting are drawn to the speed and ease that it offers.
“Two-thirds of Americans recognize they need life insurance yet many do not have adequate coverage to protect their families. As the industry continues to find innovative ways to improve the speed, ease and transparency of the life insurance purchasing process, we hope it will encourage these individuals to purchase the coverage they need to protect their families,” said James Scanlon, senior research director, LIMRA Market Research.
The market for life insurance products that combine other benefits, such as long-term care provisions, is still growing. The study finds 53 per cent of Americans are at least somewhat likely to purchase a combination life insurance product. One in five (roughly 42 million Americans) say they are “very” or “extremely” likely to buy a combination product.