In an interview with AM Best, Nils Kuecker, regional market executive at the Swiss Re iptiQ Life unit, highlighted the company’s strategy as it tries to find opportunities while bridging the life insurance gap.

Life insurance policies have diverged in recent years, primarily around underwriting. Traditionally, policies require comprehensive medical examinations and evaluations, while immediate issue policies, which have gained popularity during the COVID-19 pandemic, offer minimal underwriting and quick issuance.

“The entire underwriting process can sometimes take a long time,” Keuker told AM Best. “The other end of the spectrum is hardly any underwriting – which is a more foolproof type of approach, which is very easy for the consumer and convenient because you don’t have to answer any medical questions but obviously the insurer then has to build in some protections into the rates. “We want to find a middle ground.”

Get the latest reinsurance news straight to your inbox twice a week. Register here

In the US, iptiQ focuses on term life, whole life, final expense coverage, and Medicare supplemental coverage, while it also offers property/casualty insurance in Europe.

Qaker described iptiQ as a “B2B2C” company, working with other carriers to identify and address security gaps in their existing books of business.

Read more: Swiss Re is considering options to divest its digital platform IptiQ

iptiQ’s strategy is not based solely on a digital focus. Instead, it blends data and human interaction as necessary. The company’s technology and data platform, combined with customer surveys, allows decisions to be made on policy issuance. On the claims side, technology is speeding up the processing process.

iptiQ partners with call centers, independent agents, brokerage organizations and life insurance companies to analyze customer data and identify coverage gaps, Keuker said. This targeted approach generates leads, which helps producers identify the right consumers, offers and timing.

The company also seeks to reduce costs for consumers, which could increase conversion rates by up to 20%. Enhancing agent productivity reduces industry acquisition costs.

“If you think about a group of actual customers, you may have bought that policy 10 or 15 years ago, and what you thought you needed may not be enough anymore,” Kuker said. “So, we help our partners understand the opportunities on their books and that becomes very effective.”

The 2023 LIMRA report found that 52% of American adults have life insurance, yet 41% of insured and uninsured adults feel they lack adequate coverage. This means that more than 100 million American adults do not have adequate life insurance.

“The middle market sector is a difficult sector because obviously the case volumes are not as large as they sometimes are in higher net worth market segments,” Kuker said. “So, finding an efficient way for the distribution partner to close the sale and for consumers to find an affordable solution is really important.”

What do you think of this story? Feel free to share your comments below.

Get the latest reinsurance news straight to your inbox twice a week. Register here