How A Pandemic, Emerging Technologies, and Public Interest Changed the Landscape of Life Insurance

Throughout the course of our industry’s history, we have seen remarkable changes and innovations both from a policy and technological perspective.  In every event, whether it was the creation of new GI policies to reflect the sacrifices being made in World War II or the digitization of policies and records after the commercial success of the computer, our industry has always reflected the world in which it serves.  The free market economy has given rise to indexed policies, encouraged financial planners to offer their clients life insurance as part of a balanced asset strategy, and the government has come to bear on everything from taxation to rules governing the illustrative process.  The past year and a half have seen a number of external and internal forces shift the landscape beneath us.  Between the Covid-19 pandemic, the success of rapid medical underwriting, and a renewed sense of mortality amongst our fellow Americans, our industry has been sprinting forward to meet the challenging demands of today’s diverse marketplace.  

Social Distancing Created a Need for Emerging Online Applications Technologies

With the vast majority of the nation on a self-imposed lockdown complete with mask requirements and social distancing guidelines, the ability to ‘meet’ clients where they live became paramount to the continued growth of our business.  While online applications had been around for a number of years and remote medical underwriting had been in its infancy, the pandemic accelerated the need and maturity for both.

While carriers have long had these technologies available, the pandemic has supercharged their application.

We’ve seen companies sprout up virtually overnight offering 15-minute term life policies with no exams or lab work required of the client.  This same underwriting will inevitably find its way into more products as the data collection algorithms supporting them become more advanced.  The ability to acquire a policy at the point of sale has turned shopping for term policies into a more familiar purchasing experience for the consumer.  It’s nearly as easy as an online entertainment subscription.  Needless to say, demand for this approach to purchasing life insurance will increase in the years to come.  

The Pandemic Altered the Way People View Life Insurance

In a study conducted by the Lincoln Financial Group shortly after the summer peak of the Covid-19 pandemic, 33% more people viewed life insurance as an important purchase than in previous surveys.  When facing uncertain times, it’s clear that the security and consistency that life insurance products offer can help people feel more secure.  This resulted in increased policy sales for the industry and a slew of difficult coverage decisions for insurers facing the same uncertainty.  

Policies are being purchased at a rate not seen since the decades following World War 2.  As industry professionals, we should press that advantage and find ways to maintain this renewed momentum. 

Precise and relatable messaging for our clients will be necessary to fuel continued interest in our products and offerings.  

While the net result of the pandemic may have been a boon to certain aspects of our industry, the economic fallout from the lockdowns has had adverse impacts on markets and market-facing products.  

Historically low interest rates for a prolonged period of time have created issues with some of our products.  While runaway inflation may eventually tip that scale in the other direction, the current forecast is for continued low interest in the foreseeable future. 

The silver lining for life insurance is the renewed interest in our offering from the public at large, the tilt in perspective that the tools we educate clients on every day are becoming more valuable to a greater segment of the population.  

The Time for Increased Productivity and Working Smarter, Together is Now

Beyond the technological advancements that have helped serve client needs throughout this challenging time, there have been internal improvements as well.  Improvements that help all of us work together with a focus on productivity, accuracy, and efficiency.  Mettle was founded to take full advantage of all of the leading-edge tools available to producers, agents, and advisors. 

Mettle exists to take advantage of this new selling environment in order to advance your practice in the best interests of your clients

In addition to our investment in tools to make implementing sound insurance strategies for your clients easier, we have assembled a team of people who understand how to best use the existing market products to their full potential.  The last year and a half has been a period of great adaptation in our industry.  We pride ourselves on our expertise and capacity to understand the best use cases for each product that we stand behind. By maximizing all of the tools available to us, we are able to adjust to the changing environment around us.  There will be obstacles ahead as the industry continues to navigate towards a more effective future.  Mettle will lead the way with transparency, attention to detail, and adaptive persistence.  We look forward to taking the journey with you.