Insurtech Startups Pivot Toward Supporting the Agents: Afficiency Exec

Until artificial intelligence gets good enough and can mimic a human being, there will always be space for agents to sell life insurance, especially with the existing commission structure, which makes it a very viable role.

It’s also important to remember that life insurance agents come in many forms and sizes. While some focus on basic insurance products, others are more like financial advisors, working with different types of clients across a broad range of products.

Many consumers perceive life insurance products as complicated and appreciate the advice and guidance of an agent; they need to be reassured and appreciate what an agent has to offer.

Do you think agents will continue to survive once the iPad generation becomes adult prospects?

There will always be a place for an advisor. Until AI becomes so advanced and completely replaces humans, making the agent obsolete, there will always be room for agents to sell life insurance.

We’re certainly not there yet! But it is important to note that there are opportunities for some life insurance products to be embedded within other financial or insurance transactions, perhaps when the consumer is signing up for a mortgage or enrolling in employee benefits.

Do you think the same thing is happening in other financial services sectors, or are the other sectors more (or less) digitalized?

Other sectors are certainly more digitized; the pandemic gave life insurers the impetus to embrace digitization. But that does not mean it’s been easy for carriers and distributors alike to modernize, allowing insurtechs like us to play a key role.

Life carriers were not positioned well or equipped to bring 100% digital products to market. It can take them years to do that, and distributors don’t want to wait that long. We’re able to bridge the divide between carrier and distribution, bringing innovative, digital products to market in a matter of months.

The other important thing to note is that it isn’t feasible to take an existing product and dress it up as a digital offering, as it just doesn’t work like that.

Often, retrofitting backfires. If a product is to be digital, it must be 100% digital from the outset.

Do you see differences in digitalization levels as a threat to the life insurance community or a help? Is depending on agents good for the life and annuity sectors or helping non-insurance financial services companies grab all of the assets?

We’re seeing the best outcomes realized when agents are equipped with the right digital tools, and it isn’t a case of digital tools being a threat to the life insurance community.

In fact, it is quite the opposite.

Agents who embrace the right tools are meeting the market where it is and seeing success.

We have seen the greatest success when there is a collaborative effort between all parties.

We’re uniquely equipped and positioned to bridge the gap between carriers and distribution, helping them to make accessible and easy-to-understand life insurance policies that are available digitally a reality.

Mark Scafaro. (Photo: Afficiency)