Over the last decade, the life insurance application process has benefited from tremendous innovation and process improvement. Enabled by data, analytics, and technology, life insurers are providing consumers with faster responses and better experiences as they shop for and purchase life insurance. But consumers aren’t the only winners. Producers and carriers can also reap rewards by improving the life insurance application process. In fact, better data can enable better decision making and bring better outcomes to all three parties.
First, a bit about better data. Not all data is created equal. We know that data quality is essential to making better decisions. Life insurance applications contain myriad opportunities for data errors, so it’s important to address data quality first and foremost.
Did you know that according to LexisNexis® Risk Solutions independent research, on average, 5% of date of birth information submitted to life insurers during the application process is incorrect?[i] In addition, the same research shows that 12% of drivers’ license numbers and 6% of social security numbers collected by carriers can be inaccurate.1 Errors in date of birth data can also cause inaccuracies in identity verification and in ordering downstream underwriting reports. While those percentages may seem small, their impact can be big. If left undetected, these types of errors can lead to incorrect premiums and risk that is not priced appropriately. Poor data accuracy can be expensive. For every 100 applicants, incorrect drivers’ license data represents $96 in motor vehicle record waste—almost $1 per person.1
Second, poor data quality can also impact the customer experience. Accurate social security numbers can help expedite underwriting requirements, minimize delays from “not in-good-order” applications, and reduce wait times that may contribute to high drop-out rates when a consumer loses interest. Producers want to provide the best experience for their customers and they want a speedy underwriting decision.
In spite of all of these data challenge hurdles, there is a way to make the life insurance application process easier. LexisNexis® InstantID® and Life Data Prefill work together to provide more accurate, current and complete data needed to help address all of these challenges.
InstantID delivers the reliable information life carriers need to help reduce errors, minimize processing time and flag fraudulent activity. When integrated into your automated workflow, it quickly searches billions of public records to help verify a proposed insured’s identity and can spot discrepancies in key identity information. As identity fraud continues to grow – and particularly the types of fraud that are perpetrated online, InstantID can provide a reliable way to detect and react to ever-increasing cybercrime.
After InstantID verifies the consumer’s identity, LexisNexis® Life Data Prefill then streamlines the insurance application process by prefilling essential data needed for an “in-good-order” application, such data which may include social security numbers, drivers’ license numbers, physician information, and beneficiary information to name a few. The result is a speedier process, more accurate data, and an improved customer experience for the proposed insured and the producer. Combined, the two solutions help minimize risk and data errors to create a better customer experience.
For more information on our Life Insurance solutions, visit our webpage.
[i] 2019 LexisNexis original research study