Throughout our industry’s history, the distribution channel for life insurance products has relied on high-touch, in-person interactions. Advisors knock on doors, take notes at kitchen tables, and fill out applications by hand, a tedious process that’s prone to errors. Waiting for blood, urine, and medical test results takes weeks.
When all is said and done, the sales cycle for life insurance products can take up to three months and require more than 20 hours of face time with clients. This is the same whether an Advisor is selling a simple term product or a more complex solution.
Servicing existing policyholders is also a frustrating and time-consuming process for Advisors. To check a client’s status, they have to literally dig through a room full of file cabinets or search the disconnected databases of clunky legacy software.
To improve the process for consumers and Advisors alike, savvy life insurance carriers are embracing technology to modernize the user experience, reduce costs, and process new business faster and more efficiently.
They’re trading the woefully outdated distribution model we have today for a unified experience that empowers people to buy directly from their websites and online portals. At the same time, they’re giving Advisors the digital tools they need to streamline the lead management and application process.
To describe this new approach, we’ve coined the term “Hybrid Distribution.” It refers to a distribution model that leverages advanced technology and data-processing tools to provide a seamless, streamlined experience for consumers, Advisors, and carriers.
The customer is empowered to research products at their own pace, whether on the couch watching TV or in the Uber ride to the airport. Advisors can easily monitor each applicant’s journey in real-time, getting alerts when important steps are completed or if a client’s behavior indicates they need additional support. Carriers can instantly check the status of each applicant, a level of transparency that’s currently unprecedented in the life insurance industry.
“The Hybrid Distribution model helps life insurance carriers deliver a more flexible and delightful experience to consumers and Advisors alike,” said Jeffrey. “It’s not meant to replace Advisors. Instead, it allows them to be more productive while giving customers the personalized, omnichannel experience they expect.”
This digital transformation of the distribution model isn’t just for big-name carriers. In the past, many fraternals and smaller organizations were put off by the hefty price tags of legacy providers or the overwhelming task of developing software in-house.
But that’s the beauty of Hybrid Distribution. There are options available for every budget, allowing life insurance carriers of all sizes to increase distribution, reduce their costs, and offer new products faster than ever, all for a single optimized fee.