Manulife launches AI-powered life insurance app for quick approvals

Manulife Financial is at the forefront of innovation in the insurance industry with the launch of a new electronic life insurance application. This application is integrated with artificial intelligence, aiming not only to simplify the process for advisors but also to tackle common client frustrations regarding lengthy approval times. This advancement marks a significant shift in how life insurance is processed, reflecting a broader trend in the industry towards modernization and efficiency.

Introducing Manulife's AI-Integrated Life Insurance Application

The latest electronic life insurance application from Manulife is designed to ease the administrative burdens faced by insurance advisors. By leveraging artificial intelligence, the tool promises to streamline the approval process, ultimately benefiting clients who often complain about the slow pace of applications.

As highlighted by Karen Cutler, Manulife’s chief underwriter for individual insurance in Canada, the new system has eliminated about 40% of the questions that traditionally delayed applications. This reduction is part of a strategy to create a more personalized experience for each client, which Cutler believes will enhance the efficiency of the application process.

A Shift in Client Expectations

Since the onset of the COVID-19 pandemic in 2020, the insurance sector has had to adapt rapidly. Insurers learned they could assess many applications without the need for medical exams or fluid testing. This shift has led to a growing trend of asking fewer questions during the application process.

• Reduction in application questions, enhancing personalization.
• Faster processing times to meet client expectations.
• Increased reliance on technology to streamline approvals.

Cutler notes that clients today have different expectations regarding the speed and transparency of the insurance process. Many do not understand why it can take so long to receive approval for their applications.

Innovative Questioning Approach

While Manulife continues to collect essential medical information, the method of inquiry has transformed. The new format focuses on four primary health conditions that are commonly evaluated by insurers: heart disease, cancer, stroke, and diabetes. This targeted questioning allows for a more effective assessment of the client's health status.

Advisors can now ask specific questions regarding medications and treatments, enabling them to gather relevant information quickly. Additionally, clients can provide more open-ended medical details, allowing for a comprehensive overview of their health without overwhelming them with unnecessary questions.

Efficiency Gains and Time Savings

Before launching this new application, Manulife conducted a thorough analysis of several hundred applications to compare traditional and updated questioning methods. The results indicated that the new approach does not compromise the quality of information collected, while significantly speeding up the process.

According to estimates, the new application process is approximately 15 minutes faster than previous methods. This efficiency allows advisors to focus on delivering valuable advice and connecting with a larger client base, rather than getting bogged down in lengthy forms.

Utilizing AI for Rapid Approvals

One of the most exciting features of the new application is the integration of an AI tool named MAUDE. This system can underwrite applications for younger and healthier clients based on the type of insurance product and the coverage amount requested. This innovative approach means that clients without significant health concerns could receive approval in as little as two minutes after submitting their application.

The introduction of MAUDE not only enhances the speed of underwriting but also improves the overall customer experience by providing quicker feedback and decisions.

Impact of the New Application

Since its launch last fall, the new application has proven effective, with a remarkable 58% of eligible applications receiving automatic approval by December. However, applications that do not qualify for automatic approval are still reviewed by an underwriter, ensuring that all cases are treated with the necessary rigor.

• 58% of eligible applications approved automatically.
• Underwriter review for non-automatically approved cases.
• Maintains a standard assessment process even for complex cases.

Cutler emphasizes that this does not mean clients with unique circumstances are overlooked; they still receive thorough evaluations to ensure fair treatment.

Future of Insurtech and Consumer Expectations

The introduction of this AI-integrated application is just one example of how the insurance industry is evolving in response to consumer demands. As technology continues to advance, it is likely that we will see even more innovations aimed at enhancing efficiency, transparency, and customer satisfaction.

Insurance companies must remain agile and responsive to the needs of their clients by embracing new technologies and methodologies. This trend will likely shape the future of insurance, making processes simpler and faster for clients and advisors alike.

Conclusion: A New Era for Life Insurance

Manulife’s latest developments reflect significant changes in the life insurance landscape. By embracing technology and focusing on client needs, the company is setting a new standard for efficiency and service in the insurance industry.

As we move forward, it will be crucial for insurers to continue to innovate and adapt to ensure they meet the ever-evolving expectations of their customers.