Commerce and how it used to be known has changed forever. All major industries have seen a steady tide of technology being implemented to drive efficiencies, increase profits, and decrease costs. The research shows that the insurance industry is only going to continue moving in this direction with more and more technologies being put in place to enable applications, underwriting, and policy management.
You will have seen a lot being written about insurance carriers and service providers seeking to bridge the middle market gap with solutions that facilitate direct to consumer sales. However, this is only a small percentage of the market.
Over 90% of policies are still being sold by advisors and will continue to be.
It is fairly obvious that Advisors are crucial to the overall life insurance sales process and therefore need to be empowered with the tools to do their jobs efficiently and effectively. Currently, the life insurance sales cycle can take up to 3 months with over 20 hours of face-to-face time with clients. This is the same regardless of whether a client is buying a simple term product or if they are buying a complex one.
Giving advisors the ability to perform a needs analysis, send a quote, complete an E-application, and manage their clients digitally brings about a massive reduction in the paper trail and time needed. This, in turn, liberates more time for them to spend face-to-face strengthening existing customer relationships or finding new ones. This leads to an increase in policies sold and a massive reduction in error rates benefiting advisors, carriers, and customers.
Although modern consumers are seeking a modern experience, this doesn’t necessarily mean one that doesn’t involve a person. As noted above, the majority of policies are still being sold through an Advisor and this is largely due to life insurance products being complex and difficult to understand or underwrite. Our goal at Breathe Life has been to provide modern, digital, and delightful experiences to both the advisor and the consumer. Perceptive insurers like La Capitale have been quick to understand this as a service differentiator and have chosen to provide their Advisors with a seamless digital platform to enable policy sales. By partnering with Breathe Life and implementing our white-label distribution platform for a large variety of life products, La Capitale is pushing to be a leading innovator in the space.
In 1940, members of Quebec’s association of civil service employees joined forces and created a fraternal benefit society to protect their families. Now, La Capitale has 312,000 mutual members and over 2600 employees, guided by the values of mutualism on which it was founded, they work with people by providing access to personalized products and services in order to build, protect, and value what they feel counts for their individual and collective financial security. With assets of $7.4bn, La Capitale occupies a choice position among leading insurers across Canada.
Advancing into the digital age directly translates into selling more insurance policies and the evidence for that is clear. Since going live with the Breathe Life platform, La Capitale has seen steady growth in the number of policies being issued through the platform. After its launch date in September 2019, the target was set at 5% of policy applications transitioning via the platform by year-end. In October 2019, they saw 23% of policies being issued digitally and this increased to 43% by October 2020. The sales cycle itself has also been slashed with a decrease of 25% in time to issue a policy and a 30% rate of error falling to 0%.
Not only were current active advisors switching from the old method to the platform at a high rate, but La Capitale also saw a significant reactivation of dormant advisors who had phased out the selling of their life products. Much of this has been down to the ergonomics of the platform and how easy it is to use, as well as the sweeping success rate of onboarding new clients. An experienced advisor had this to say about working with the new interface
« “Fundamentally I have become much more proficient at processing client applications through the Breathe Life platform. Having all of the necessary forms digitized and centrally accessible is allowing me to work through several bigger ticket policies each day, this would not have been possible before”. »
Obviously, those statistics speak for themselves but they don’t necessarily tell the whole story. We mustn’t forget there is a very human element to providing detailed insights into what makes the right life policy for someone. That knowledgeable perspective is a requirement of the customer base for them to feel satisfied with their choice of both policy and provider, thus, enabling a win-win relationship for advisor and carrier was essential.