May 2021 Issue: The Covid-19 Pivot: A win for your Insurance Clients-The Covid-19 Pivot: A win for your Insurance Clients by Mark Maurer

The Covid-19 Pivot: A win for your Insurance Clients by Mark Maurer

Pdf Summary

Insurance companies have had to adapt to the challenges posed by the Covid-19 pandemic. Many people have been seeking life insurance during this time, either due to a heightened awareness of mortality or simply because they have had more time to apply for insurance during the lockdown. However, insurance companies were faced with the difficulty of conducting paramedical exams and gathering data to assess risk while adhering to social distancing guidelines.<br /><br />To overcome this challenge, insurance companies implemented new processes. One company eliminated the need for laboratory tests by conducting telephone interviews, running background checks on potential insured individuals, and ordering medical records. Another approach involved accelerated underwriting programs, where the underwriter could decide to waive exams and go straight to an offer of coverage, based on the phone interview and data check.<br /><br />Companies that previously lacked exam-free processes quickly introduced them, and many expanded their coverage limits. For disability insurance, higher limits and the use of medical records instead of labs were introduced. The telephone interviews for underwriting were replaced with electronic interviews, providing applicants with flexibility in completing questions.<br /><br />The process of obtaining medical records, often a time-consuming part of the application process, was transformed in less than a year. Applicants now have the option to create a secure link between their medical records portal and the insurance company underwriter, making the process faster and more reliable.<br /><br />These changes in the insurance industry are likely to remain even after the pandemic ends. The flexibility and efficiency of these new processes have been beneficial for both insurance companies and customers. While complete automation and speed may not be achieved for all insurance coverage types and amounts, the industry has taken a significant step forward in adapting to the current circumstances.

Keywords

Insurance companies

Covid-19 pandemic

Life insurance

Paramedical exams

Social distancing guidelines

Telephone interviews

Background checks

Medical records

Accelerated underwriting programs

Coverage limits