Robo-advisor for Insurance

[SamIam]

How do think this will shape our industry. I remember when everyone said it would destroy the agents ( I was one of them that said it) it actually helped. I think this is different though. Since they will be giving advise not just showing prices.

What is everyone's take on this?

 

[DHK]

Re: Robo-advisr for Insurance

What kind of insurance?

 

[SamIam]

Re: Robo-advisr for Insurance

Life, Med Sup or even health if their is such a market then

 

[DHK]

Re: Robo-advisr for Insurance

Jeff Root already wrote the book for life insurance digital sales:
https://www.amazon.com/Digital-Life...UTF8&qid=1496711934&sr=8-1&keywords=jeff+Root

I couldn't tell you regarding med supp or health (remember the obamacare website?). However, the older one gets, the more that their cognitive abilities begin to diminish and they really depend on insurance advisors to help them to make good decisions.

Unless trust in insurance agents goes down (even further), then websites offering information and/or quotes won't make much of a dent in the agent distribution channel. Insurance is, by nature, complex. Policy and term definitions and various uses... will ensure that a life insurance agent who is looking out for the best interests of their clients... will always have a great career.

There are some things you just can't automate.

While this article is geared towards securities advisors regarding current changes in technology (such as 'robo-advisors'), it makes perfect sense for this topic:

http://www.fa-mag.com/news/nick-murray--wake-up-to-the-golden-age-of-financial-planning-32751.html

"Robo-advisor—I'm 50 years in the business, and this is the single stupidest idea I have ever heard," said Murray. "Robo-advisor is a contradiction in terms. Robo is a robot, advisor is a human, and never the twain shall meet. … if you are for more than 10 seconds worried about a robo-advisor, you have no value proposition. You don't know what it is that you do."

Importantly, robo-advisors and other technological solutions have no way to guide investor behavior or react to clients' emotions—qualities that make human advisors indispensible, Murray said.

Murray also said that advisors shouldn't be so concerned about fee compressions. If clients want to leave their services for cheaper offerings online or at a bank, they were probably poor candidates for advice in the first place, he said.

 

[scagnt83]

Re: Robo-advisr for Insurance

I wouldnt be so sure. Currently, "robo-advice" is a fairly simple algorithm that gives fairly basic "canned" advice.

However, AI could be a game changer. It can compile agent knowledge and case studies by the thousands. Then analyze all of that to give a customized plan. AI can know your emotions before you tell it via social media, tone of voice, etc.

Its a much different paradigm than the internet. The internet is dumb by nature. It needs a human brain to create content and perform functions. AI is like giving the internet a brain. It performs logical functions based on experience and mass amounts of data.

Its not just agents in danger of consolidation. Its engineers, architects, all kinds of white collar jobs will see big changes in the way they do business.

I dont think it will wipe agents out completely. But you will see mass consolidation at some point imo. Especially on the captive side. Carriers are putting trillions into AI tech, and its not just for UW and admin. Ive seen the sales side of what a few of them are doing. Its scary, especially with all the data they have to mine.

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I predict that within the next decade, robo-adivce will be the main go-to for at least 50% of new insurance clients. Especially the more simple products such as Term, FE, Med-Sups, etc.

 

[Tahoe Ray]

I wouldnt be so sure. Currently, "robo-advice" is a fairly simple algorithm that gives fairly basic "canned" advice.

However, AI could be a game changer. It can compile agent knowledge and case studies by the thousands. Then analyze all of that to give a customized plan. AI can know your emotions before you tell it.

Its a much different paradigm than the internet. The internet is dumb by nature. It needs a human brain to create content and perform functions. AI is like giving the internet a brain. It performs logical functions based on experience and mass amounts of data.

Its not just agents in danger of consolidation. Its engineers, architects, all kinds of white collar jobs will see big changes in the way they do business.

I dont think it will wipe agents out completely. But you will see mass consolidation at some point imo. Especially on the captive side. Carriers are putting trillions into AI tech, and its not just for UW and admin. Ive seen the sales side of what a few of them are doing. Its scary, especially with all the data they have to mine.

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I predict that within the next decade, robo-adivce will be the main go-to for at least 50% of new insurance clients. Especially the more simple products such as Term, FE, Med-Sups, etc.

The good news is that until the carriers all decide to collude to take out the agents, there will still be an need for impartial, independent agents to shop the coverage.

And I'm guessing that "trillions" was hyperbole or a typo...lol.

Btw, should a large agency solve the AI equation instead, which will happen at some point, look out...because THAT is the paradigm shift of our industry.

The carriers are still going to have a problem doing this due to their business model; an independent agency has no such issue.

 

[scagnt83]

The good news is that until the carriers all decide to collude to take out the agents, there will still be an need for impartial, independent agents to shop the coverage.

And I'm guessing that "trillions" was hyperbole or a typo...lol.

Btw, should a large agency solve the AI equation instead, which will happen at some point, look out...because THAT is the paradigm shift of our industry.

The carriers are still going to have a problem doing this due to their business model; an independent agency has no such issue.

I agree about the carrier business model.

Was serious about the "trillions" figure if you look at the industry as a whole. Just a guess, but lots of individual carriers are already in the billions in their AI investments. If not a trillion yet, it will be very soon.

 

[SamIam]

Like all technology it cheapens so I'm sure it will spread where it's accessible to Imo and individual agents.

 

[WinoBlues]

Re: Robo-advisr for Insurance

I wouldnt be so sure. Currently, "robo-advice" is a fairly simple algorithm that gives fairly basic "canned" advice.

However, AI could be a game changer. It can compile agent knowledge and case studies by the thousands. Then analyze all of that to give a customized plan. AI can know your emotions before you tell it via social media, tone of voice, etc.

Its a much different paradigm than the internet. The internet is dumb by nature. It needs a human brain to create content and perform functions. AI is like giving the internet a brain. It performs logical functions based on experience and mass amounts of data.

Its not just agents in danger of consolidation. Its engineers, architects, all kinds of white collar jobs will see big changes in the way they do business.

I dont think it will wipe agents out completely. But you will see mass consolidation at some point imo. Especially on the captive side. Carriers are putting trillions into AI tech, and its not just for UW and admin. Ive seen the sales side of what a few of them are doing. Its scary, especially with all the data they have to mine.

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I predict that within the next decade, robo-adivce will be the main go-to for at least 50% of new insurance clients. Especially the more simple products such as Term, FE, Med-Sups, etc.

I agree. It has already started. I remember when A. L. Williams first surfaced, The old agents said they are a flash in the pan. Then Select Quote, Flash in the pan no one is going to buy Life Insurance over the phone. FE? Nope, Never going to happen. AARP, Globe, Colonial Penn Mutual of Omaha ........... Flash in the pan.

Young agents should be fine as they are raised in the technology world and should be able to adjust and adopt. Old school guys should also be OK as they should have learned to build relationships, prospect and work their BoBs. The agents in the middle group had better learn from both the young and old agents. IMohsoHO

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Like all technology it cheapens so I'm sure it will spread where it's accessible to Imo and individual agents.

This used to be high dollar tech.

 

[walthamny]

If AI can figure out what tone of language to use when a 60 year old guy says his 22 year old wife would be fine and there is no need for life insurance, we will be out of a job. We are no way near there in AI technology. It sometimes takes years to teach this to the human brain. So most of you on this board, don't worry. However, I believe, policy delivery may totally become e-delivery in our lifetime. And yes, do not call list and caller id have made our life difficult, however, facebook and linkedin have made referals much more easier.