By John Hilton
January 30,
2019
Just 26 percent
of the total coverage needed for life insurance is currently met, according to
a new report, resulting in $70 billion in lost premiums for the industry.
The report
found that insurance companies are missing out on an average of $785 in annual
life insurance premium payments per person who requires insurance coverage in
the U.S. Atidot, a technology company providing AI, big data, and predictive
analytics tools to life insurers, released its report today.
"Policyholders
are generally unaware that they are underinsured, and the onus must be on the insurance
industry to remedy that," said Dror Katzav, CEO of Atidot.
New solutions
enable insurers to harness data efficiently and know when to contact clients to
update their coverage and prevent lapses. The key is “touchpoints” at crucial
times in a policyholder’s life, Katzav told InsuranceNewsNet.
“Often people
don’t even realize that there is a gap because they purchased something,” he
explained. “But your life is not going to be the same five years later, or 20
years later.”
State-By-State
Numbers
The report
analyzes the levels of insurance on a state-by-state basis, uncovering the rate
of under-insurance for individual states and the U.S. as a whole. West Virginia
recorded the highest level of under-insurance with an average of 85 percent,
while Oklahoma, the least under-insured state, still recorded a staggering 51
percent.
The ability to
“microsegment” is something that would benefit insurance companies, Katzav
said.
“Even in
Manhattan there are places where this side of the street does not look anything
like the other side of the street,” he said. “Being able to provide insurance
solutions for the other side of the street as well as this side of the street
might not be something that modern insurance companies can do.”
Companies are
forfeiting enormous profit potential and placing their most valuable asset, a
loyal customer base, at risk by failing to capitalize on the data they possess,
Atidot concluded. The failure to strategically interact with their clients
comes at a substantial cost for insurers and customers alike.
In 2019,
insurers should be making better use of the data they possess, Katzav stressed.
“What we’re
surprised to see is that many of the companies are not monetizing this data
properly,” he added. “From 80 to 90 percent of the data are not being monetized
because it’s used just for administrative purposes or not even used at all.”
InsuranceNewsNet
Senior Editor John Hilton has covered business and other beats in more than 20
years of daily journalism. John may be reached at john.hilton@innfeedback.com. Follow
him on Twitter @INNJohnH.
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