How has technology made insurance e-learning mandatory?
Insurance eLearning is a new field, but it has several advantages. The best part is that when insurers are trained in digital technologies, they can learn how to deal with the key stakeholders such as the insured.
How can insurance e-learning be delivered?
The webinars are effective in reaching a fair range of audiences. The attendants also have opportunities to talk to the speaker which is effective in enriching their knowledge. Although in-person training can be organized it is not a plausible solution when the learners belong to different countries. The insurance industry has undergone a drastic change ever since the pandemic happened. People have realized why a mortality protection policy is required. This need for an insurance policy has also been heightened due to the economic trend due to which job losses have become a common phenomenon. The middle class, although has expanded in economic terms, they have much more risks to handle. The generation of baby boomers has also taken insurance policies for their retirement savings because, by 2030, most of them will not be working anymore. These are the reasons why insurance eLearning is so necessary:
- Changing role of insurance
So far, the primary role of insurance was believed to be protecting against unanticipated loss of life. But due to better health care and rising incomes, the life insurance policy won’t be such an in-demand product.
Insurance e-learning is about teaching insurers about better customer management, which includes keeping tabs on the insured’s health.
Every consumer today is using a smartwatch that can be integrated with insurance apps to deliver health-related updates to the insurer including blood pressure changes. These (internet of things) technologies have made sure that those who use them become omniscient. For example, the insured can be sent notifications and reminders through such apps about a healthy diet and daily exercise schedules and not alter their lifestyle patterns. Even any updates about scheduled doctor appointments can be sent. The insurance e-learning updates the insurers about how to handle such beneficial technical changes.
This kind of change has happened because 60% of the insured are willing to exchange their data and it’s no longer about the intrusion of privacy. So, the insurers are pleased with the control they have on their client’s mortality and hence charge them lower premiums.
The trend of sharing relevant information with insurers has become a feasible option during the pandemic. It’s because insurance companies have started relying on digital information transmitted through smart devices rather than physical examinations, not achievable due to social distancing norms.
The insurance companies have been able to attain so many benefits with such health monitoring such as lower policy lapse rates. Policy lapse can happen when the insured is no longer making premium payments and hence the insured ceases all the benefits. The policyholder gets a grace period of 30 days to make payments in case his insurance premium gets delayed. But once, once such a grace period expires, the policy is considered to lapse. A policy premium payment is missed when the insured does not have funds due to rising health expenditure obligations.
The insured suffers a blow in case the policy lapses because he can’t receive a death benefit in case of term insurance. All his premiums are surrendered by the insured and his money is lost.
But with information sharing with the insurer, the insured can avoid such an outcome as a policy lapse because he does not become a victim of adverse health-related circumstances and inflated bills.
- Continuous underwriting-Insurers must be taught about it
The insurance companies benefit due to the process of continuous underwriting where the prices of the insurance policy change. This happens because there is continuous evaluation of the consumer mortality risk and hence his premiums can be reduced.
The insurer will have a higher profit margin in case an insured continues to live a holistic lifestyle and his mortality risk is low and has a longer life span. This is much better than one-time underwriting which takes into account the past morbidity rates of the insured’s family and his hereditary disease patterns apart from his current lifestyle.
The decrease in premiums due to healthier lifestyles can incentivize an insured. Insurance e-learning can open a massive source of information for the insurers about this process and how to accumulate data about the insured from different sources. When an insurance policy is re-priced with lower insurance premiums, it’s a win-win situation for the insured and the company because the former realizes how much the insurer is concerned about him.