By: Gary Bleetstein
Partner, Agent Support Group
Every time I see a new email from a Life Carrier or BGA, it is usually associated with either a new IUL product but most recently, with new Underwriting Technology.
The question is, will this new technology take the place of the Life Insurance Advisor?
Most advisors do not even know the difference in E Applications, Drop Ticket or Accelerated Underwriting Programs not to mention GI programs using Bots !
I attend meeting after meeting on these subjects and I must say, there are two answers- NO and in some instances Yes.
Let’s start with Yes first –
Yes, the new Underwriting Processes will assist with the smaller term and UL sales for ages 60 or 65 and less for healthy insured’s. This may or may not even be a market for you.
However, what happens when either a carrier or agent goes direct to the insured via a bot or new technology- who will help the insured get all of the answers they need? Surely no bot that I am aware of can do that, and many of these programs are only taking 30-40% of the applicants. Up to 60% will still need regular underwriting?
The client at that point may need to speak with an advisor.
Now let’s look at the NO – Technology will NOT Remove the need for the Advisor?
For your more substantial clients and those with even moderate health issues, tell me the name of a Bot who can talk to an underwriter about the A1C or Hemoglobin Levels, or even the build of a client? What about a split dollar plan or premium financing? Can an underwriting program assist a client with these issues? I think not.
My firm and I have done our homework on these issues and we feel strongly that the industry will continue to find a way to streamline the underwriting process, but this does not mean it has found a way to streamline the need for the advisor.
There will always be a place in this great business we are in for the advisor who can truly add value to a sales and underwriting process and I feel strongly whatever programs come out of carriers, there will be a good spot of advisors in the Life Insurance Industry.