{"id":15733,"date":"2019-06-19T00:00:02","date_gmt":"2019-06-19T04:00:02","guid":{"rendered":"https:\/\/lifeinsurance-orleans.ca\/Life-Insurance-Blog\/insuretech-companies-see-future-in-alliance-with-old-line-insurers\/"},"modified":"2019-06-19T00:00:02","modified_gmt":"2019-06-19T04:00:02","slug":"insuretech-companies-see-future-in-alliance-with-old-line-insurers","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2019\/06\/19\/insuretech-companies-see-future-in-alliance-with-old-line-insurers\/","title":{"rendered":"Insuretech companies see future in alliance with old-line insurers"},"content":{"rendered":"\n
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While online tech platforms have upended industries from financial services to transportation, such digital disruptors are starting to take a more diplomatic approach to the life-insurance industry.<\/p>\n

\u201c[A]s insuretech ventures, as they are collectively known, have raked in growing sums of investment over the past couple of years, a nondisruptive business model has emerged as a path to success in life insurance,\u201d reported the Wall Street Journal<\/em>.<\/p>\n

Typical Silicon Valley successes involve offering consumers with a product in a more accessible package than traditional providers have brought to market. But that approach is problematic in the life insurance space, where opening doors to less-healthy individuals could tank profits and removing requirements for blood and urine samples generally make higher premiums necessary. Another hurdle, according to the Journal<\/em>, comes from capital requirements that regulators impose on life-insurance industry players.<\/p>\n

Rather than try to replace traditional life insurers, a number of companies are seeking success through symbiotic relationships. One such company is Health IQ, a California-based outfit that administers an online quiz to self-identified dieters, athletes, cyclists, and weightlifters looking to get life insurance. Those who get a passing grade stand to save thousands of dollars in premiums over the life of their policies.<\/p>\n

\u201cWe\u2019re not here to disrupt anybody, which is very un-Silicon Valley,\u201d Health IQ Chief Executive Munjal Shah told the Journal<\/em>. \u201cWe found that collaboration was the easier answer in this, and that was a bit antithetical to what a lot of other people were trying to do.\u201d<\/p>\n

Health IQ was originally conceived simply as a way to quantify a person\u2019s health-consciousness, but Shah realized the potential in partnering with insurance firms after discovering a remarkable correlation. Based on a comparison of the death rates of high scorers against the death rate of the overall American population, he said, those who scored high on Health IQ tests had a lower risk of dying prematurely. He presented the correlations to Swiss Re<\/a> AG, which agreed to take on the risk of backstopping life-insurance policies that Health IQ underwrites.<\/p>\n

Health IQ has enhanced its screening process. Aside from taking the quiz, applicants must verify their healthy lifestyles by providing one-time access to their fitness-tracker results. To unlock the most savings, they must also agree to undergo a physical and let a doctor draw bodily fluids from them.<\/p>\n

Other tech-based models are also taking root elsewhere. Policygenius.com, founded by its CEO Jennifer Fitzgerald, lets consumers learn about products, brands, and prices to comparison-shop; those who buy policies on the site move onto the books of traditional insurers. And similar to Health IQ, behaviour-tracking companies like Vitality are also linking with traditional life insurers to let people who lead healthy lifestyles pay lower premiums for their life and health insurance policies.<\/p>\n

Read the original article at https:\/\/www.lifehealthpro.ca\/rss\/ <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

While online tech platforms have upended industries from financial services to transportation, such digital disruptors are starting to take a more diplomatic approach to the life-insurance industry. \u201c[A]s insuretech ventures, as they are collectively...<\/p>\n","protected":false},"author":578,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/15733"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/578"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=15733"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/15733\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=15733"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=15733"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=15733"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}