‘Fear Of Technology’ Is Gone; Life Insurers Need To Step Up

TAMPA, Fla. -- When it comes to the acceptance of digital and online technology, the retail banking and P&C industries are as much as three years ahead of life insurers, which have been slow to innovate with new emerging systems and is sorely in need of a reset.

That’s the conversation starter that Kartik Sakthivel, the chief information officer for LIMRA, intends to bring to a session at 2022 Life Insurance Conference, sponsored by LIMRA, LOMA, Society of Actuaries and the American Council of Life Insurers.

“We’ve done a significant amount of work in digital transformation over the past many years,” said Sakthivel. “But at the end of the day, digital transformations aren’t about technology but about cultural changes. It’s about changing the mindset of a mature, established, business.”

The COVID-19 pandemic was a seminal moment not just for society but for the life insurance industry, he added. It was able to maintain business during the pandemic, he said, but it also underscored for millions the inherent stability and value of the industry.

“In these past two years our industry has recognized the value of video conferencing platforms, either to engage with clients or partners or with each other,” Sakthivel said. “We came to recognize that medical exams for underwriting cannot always be possible and that a policy should not take four to six weeks to underwrite.”

More important, he said, the industry realized it does not need a “wet signature” on every document and digital signatures can work as well.

“So the past two years has been a reset for industry, not just a an incremental transition,” he said.

Joining Sakthivel on the panel will be Bassam Chaptini, the chief technology officer for Unqork Inc., a no-code application platform that helps large companies build complex custom software; and Michael Kalen, chief executive officer for Covr Financial Technologies, a Hartford Conn.-based, a software platform provider for insurers.

“They were specifically chosen because they reset their thinking,” Sakthivel said. “They started highly successful digital companies that provide value back into the industry ecosystem. So as we got through this massive reset, my goal is to see what lessons can be learned from their journeys.”

Also joining the panel will be Brandon Jones, chief information officer for Worldwide Assurance for Employees of Public Agencies.

“He has served many technology leadership roles in the past, including in the Navy, with a pretty large group reporting to him before moving into life insurance,” said Sakthivel.

The insurance industry’s world has changed thanks to COVID-19 and customer expectations have shifted, he said, particularly around digital shopping. LIMRA’s own data show that 98% of insurance executives believe that e-commerce and self-service systems will continue to expand, Sakthivel said.

Along with the greater appetite for digital services, customers are expecting a much faster turnaround time for products and services.

“With these kind of data points and this kind of research, whether you’re an insurance company looking to invest in digital programs, or an insurtech about to make a play in this market, there’s a lot of value in the research available.”

Life insurers, he said, have had to figure new ways to cope with emerging technologies and customer expectations, as well as wildly fluctuating labor marking in the industry.

“There’s a lot of mobility happening and it’s top of mind to make sure our workforce is educated, diverse and reflective of the customers we want to serve,” Sakthivel said. “The fear of technology has gone, digital is here to stay, and it’s time to learn from those that are a step ahead of us to improve how we engage with our customers.”

Doug Bailey is a journalist and freelance writer who lives outside of Boston. He can be reached at [email protected].

© Entire contents copyright 2022 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.