Current Trends in Life Insurance Underwriting

Since the start of the pandemic, the life insurance industry has rapidly adapted with the most significant changes happening in the areas of product availability and the application process.

The first trend stems from the serious uptick in overall deaths caused by COVID-19, or more accurately, it stems from the temporarily diminished life expectancy in the U.S. that the pandemic caused. Carriers have dealt with this reality through dynamic covid-imposed guidelines and by developing products that seek to distribute as much of the risk to the insured as is workable. This trend has affected availability in some instances, with terms and products varying from carrier to carrier. The result was that some consumers found it more difficult to procure life insurance during this period. Thankfully, lifesaving scientific breakthroughs have continued to happen at an incredible rate, allowing for a more optimistic underwriting climate moving forward.

The second trend is because of technological advances that are improving the underwriting process. In some cases, the entire underwriting process can now be completed instantly or as quickly as 1-2 days. The use of artificial intelligence, proprietary algorithms, customer feedback, and background searches of multiple databases has allowed Life Insurance carriers to create a more elegant, non-invasive purchasing experience for customers. Some carriers allow exam-free, fluidless underwriting for up to $50 million of coverage. This is a win-win for everyone involved in the life insurance business.

Let First American Insurance Underwriters help you stay ahead of these trends and take advantage of the new tools and programs available. Contact your relationship manager or email internalsales@faiu.com to learn more.

— By Allan Gersten, Founder