Sick of All This Talk About AI?
By Dean Lambert, Executive Director, LIC
Tired of hearing so much buzz about AI? You're not alone. From the promises of efficiency to concerns about regulation and security, the conversation around artificial intelligence can feel overwhelming. Let's dive in to explore the risks, benefits, and everything in between when it comes to AI in the world of underwriting life insurance -
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Industry News
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U.S. Life Insurance Need Gap Grows in 2024
The 2024 Insurance Barometer Study finds a record-high number of American adults (42%) - representing 102 million adults - saying they need (or need more) life insurance. Importantly, 37% of consumers say they intend to purchase coverage within the next 12 months.
The study, conducted jointly by LIMRA and Life Happens, reveals middle-income Americans (those with a household income of $50,000 - $149,999) represent the largest market opportunity for the industry. Four in 10 middle-income Americans, or 50 million adults, acknowledge they live with a life insurance coverage gap. This group also expressed a greater intent to buy life insurance (54%) than the general population.
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American Savings Life, 14 Other LIC Member Companies Fund $25 Million Loan
American Savings Life Insurance Company, together with 16 participating investors, 14 of which are LIC member companies, recently funded a $25,000,000 loan, the largest loan ASL has made in its 70-year history.
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Converge RE Names Craig Buck as CEO
Lightstone and Converge RE II announced the appointment of Craig Buck as CEO of Converge US, beginning May 1, 2024.
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40 Companies Already Registered for LIC's Final Expense Workshop
Early bird registration for the 2024 LIC Final Expense Workshop shows 55 participants from 40 companies headed to St. Louis for the June 5-6 meeting hosted by RGA. See who's coming, program information, and registration on the meeting website linked below.
Video: Dean Lambert is looking forward to seeing you in St. Louis!
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Rodia Promoted to Executive Vice President at ELCO
Silvio Rodia has been promoted to Executive Vice President, Chief Risk Officer of ELCO Mutual Life & Annuity. With over 20 years of experience in the life insurance industry and an extensive and versatile background, Silvio will play a vital role in advancing ELCO.
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ELCO Mutual Hires Zlotnik as Controller
ELCO Mutual Life & Annuity announced that Irene Zlotnik has joined the company as Controller. Irene brings 17 years of experience in the insurance industry, having served as an assistant controller at United Life Insurance Company, where she was responsible for statutory and GAAP reporting.
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Nainar Named ELCO's New Deputy CFO
Ponni Nainar was appointed Deputy Chief Financial Officer by ELCO Mutual's Board of Directors. Nainar will succeed current CFO Paul Grawe when he retires.
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Survey Measures Small/Midsize Insurers' DEI Initiatives
A LOMA survey conducted in May 2024 measured LIC members' activity in DEI and affinity/resource groups. Among 19 companies ranging from 19 to 1,000 employees, 57% have a formal or informal DEI program or are developing one. The full report is available to LIC members upon request; for more information contact LIC at the link below.
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LIC CEO Forum Heads to Nashville
Registration is now open for the LIC CEO Forum in Nashville, August 26-28, 2024. In addition to networking, discussion, and a special outing in downtown Nashville, attendees will participate in a deep dive into the six CEO mindsets described in CEO Excellence: The Six Mindsets that Distinguish the Best Leaders from the Rest.
This event is reserved for CEOs of insurance companies and fraternal organizations.
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Blocher Recognized for Creative Actuarial Writing
LIC Member John Blocher, Chief Risk Officer, VP & Actuary with Liberty Bankers Insurance Group, received prizes for two essays submitted in Society of Actuaries writing contests. "Pick a Payout using AI" placed third in the Entrepreneurial & Innovation Article Contest and "Orbital Underwriting" earned a prize in the Speculative Spectacular Fiction & Art Contest.
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LIC Launches Preneed Survey
With input from attendees at the 2023 LIC Preneed Forum and a task force of preneed executives, LIC's annual preneed survey has been revised and is now underway. All companies involved in preneed are encouraged to participate in this important research. For more information, contact LIC at the email link below.
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GCU Featured in Equisoft Case Study on Digital Transformation
A new Equisoft case study examines GCU's strategic initiative to reduce operational and technology costs by implementing a state-of-the-art, cloud hosted, digital policy administration system for their members and agents.
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Gallagher Re: Nuanced View Is Needed on PE-Backed Reinsurance
Gallagher Re's Brian Lo wrote about pros and cons of private equity backed reinsurance in a recent blog post.
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Strategy Execution Webinar Available
Heaton Consulting presented an LIC webinar on April 24, 2024, entitled "Brand Promise + Strategy Execution = Positive Outcomes." First in a three-part series, the webinar recording is now available, along with information about the additional webinars set for July 25 and September 24, 2024.
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WSJ Zeroes in on Preneed
An April 15, 2024, article in The Wall Street Journal, "Plan Your Own Funeral, Just Don't Pay for It Now," warns of potential pitfalls when paying in advance for caskets and services.
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Upcoming LIC Events
LIC Financial & Tax Accounting Committee Virtual Meeting (1 hr CE)
May 23, 2024, 2-4 p.m. ET
www.loma.org/LICACCT
LIC Final Expense Workshop
Hosted by RGA, St. Louis
June 5-6, 2024
www.loma.org/finalexpense
LIC Home Service Summit - Virtual
July 18, 2024, 2-4 p.m. ET
www.loma.org/LICHS
LIC Webinar Series #2:
Brand, Marketing, and Sales Impact
Presented by Heaton Consulting
July 25, 2024, 2:30-4:00 p.m. ET
www.loma.org/licbrandmarketingwebinar
LIC Marketing & Distribution Virtual Meeting
July 25, 2024, 1-4 p.m. ET
www.loma.org/LICMKT
LIC CEO Forum
Reserved for Insurance/Fraternal CEOs & Presidents
Virgin Hotels Nashville
August 26-28, 2024
www.loma.org/LICCEO
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LIC 2024 Premier Sponsors
Thank you to these LIC Premier Sponsors, who support all LIC events throughout the year.
Parkway Advisors
Parkway Advisors is focused on being the best most respected provider of service in the insurance industry. Parkway offers asset management, consulting, and statutory investment reporting services that are customized to the needs of each insurance client. Through Parkway's emphasis on personal service, custom solutions, and strong communication, our clients have enjoyed historically strong performance success, especially during the financial crisis and the low interest environment that has followed. www.parkwayadvisors.com
iPipeline
iPipeline is a leading provider of low code, cloud-based software solutions for the life insurance and financial services industry. Through our SSG Digital, end-to-end platform, we provide process automation and seamless integration between every participant in our ecosystem including carriers, agents, general agencies, advisors, broker-dealers, RIAs, banks, securities/mutual fund firms, and their consumers on a global basis. Our innovative solutions include pre-sales support, new business and underwriting, policy administration, point-of-sale execution of applications, post-sale support, data analysis, reporting, user-driven configuration, consumer delivery and self-service, and agency and firm management. www.ipipeline.com
thinktum/illustrate
thinktum and illustrate inc (merged in 2023) provide powerful, cloud-based end-to-end solutions for life insurance carriers to energize, automate, simplify, and streamline the application process for virtually any life insurance product or distribution channel.
The no-code/low-code LIZ and OPUS platforms combine to provide a comprehensive, adaptable, and client-focused solution for life insurance carriers, with a particular emphasis on the needs of small to medium-sized carriers. The goal is to provide not just a technological solution but a partnership that understands the unique challenges and ambitions of each client. www.thinktum.com
QLAdmin Solutions
QLAdmin Solutions is a leading technology partner for the small to mid-sized insurance company offering traditional life, health, annuity, preneed, final expense, and Medicare Supplement products. QLAdmin serves the entire policy lifecycle from new issue to termination with expert policy administration processing that is both comprehensive and easy to use. QLAdmin continues to evolve based on product and client needs ensuring extreme client longevity and satisfaction with QLAdmin products and support. QLAdmin is your proven partner in policy administration. www.qladmin.com
Equisoft
Equisoft is a business-first technology company dedicated to helping insurance and wealth management organizations reach their goals. Specialized expertise: Over 25 years of experience helping small and mid-sized life insurers & fraternals solve their biggest challenges through digital transformation. www.equisoft.com
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About The LIC Bullet
The Bullet is the official e-newsletter of the Life Insurers Council, which has been providing networking and practical business solutions for life insurers since 1910. As a council of LIMRA and LOMA, LIC serves the unique needs of small to midsize member companies, offering a personal network of peers with practical solutions to shared challenges. The Bullet delivers immediate and relevant industry news and editorial.
LIC E-News Online Community: As a networking organization, we welcome dialogue and input from our readers - therefore we are transitioning The Bullet to its new home in the LIC E-News online community at LICConnect. All Bullet subscribers have access to this forum, and others can request access by contacting lic@loma.org.
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Dean's Article (Full Text)
Sick of All This Talk About AI?
By Dean Lambert, Executive Director, LIC
Tired of hearing so much buzz about AI? You're not alone. From the promises of efficiency to concerns about regulation and security, the conversation around artificial intelligence can feel overwhelming. Let's dive in to explore the risks, benefits, and everything in between when it comes to AI in the world of underwriting life insurance.
You Aren't Alone
Many individuals are questioning how AI will impact the life insurance industry - from potential risks to exciting benefits.
It's normal to have mixed feelings about this rapidly evolving technology. On one hand, AI offers the promise of streamlining processes and improving efficiency. On the other hand, concerns about security, discrimination, and regulation loom large.
Navigating this complex landscape can be challenging, but it's essential to stay informed and engaged. By understanding both the potential pitfalls and advantages of AI in underwriting life insurance, you can make more informed decisions and contribute to shaping a responsible future for this dynamic industry.
Risks and Benefits
AI technology in life insurance offers a wide array of risks and benefits that are important to consider. On one hand, the use of AI can lead to increased efficiency in underwriting processes, making it faster and more accurate. This can result in quicker policy approvals and better pricing for customers.
However, there are also risks associated with relying too heavily on AI in this sector. One major concern is the potential for discrimination based on data biases or inaccurate algorithms. If not carefully regulated, AI systems could unintentionally perpetuate inequalities in access to insurance coverage.
Furthermore, there is the issue of security when it comes to handling sensitive personal information through AI systems. Ensuring robust cybersecurity measures is crucial to protect customer data from breaches or misuse.
While AI offers exciting possibilities for improving the life insurance industry, it's essential to proceed with caution and implement proper safeguards to mitigate potential risks.
Consumer Trust
When it comes to AI, one crucial aspect that often gets overlooked is consumer trust. As technology continues to advance and become more integrated into our daily lives, it's natural for people to have concerns about how their data is being used and whether AI algorithms are truly working in their best interests.
Building and maintaining consumer trust should be a top priority for companies developing AI technologies. Transparency in how data is collected, stored, and utilized is key to fostering that trust with users. Consumers want to know that their privacy is being respected and that the algorithms making decisions about them are fair and unbiased.
Companies must also prioritize security measures to protect user data from breaches or misuse. By implementing robust cybersecurity protocols, businesses can demonstrate their commitment to safeguarding sensitive information. Additionally, providing clear information on how AI systems work can help users feel more comfortable engaging with these technologies.
Establishing consumer trust in AI requires open communication, ethical practices, and a focus on putting the needs of users first. When individuals feel confident that their data is secure and that AI systems operate with integrity, they are more likely to embrace these innovations with confidence.
Summary
While discussions around AI can sometimes feel overwhelming and complex, it's essential to remember that you are not alone in your feelings. The risks and benefits of AI in underwriting life insurance are real and significant, affecting consumer trust, efficiency, security, regulation, and even potential discrimination.
As advancements continue to shape the future of the industry, maintaining a balance between innovation and ethical considerations will be crucial. By staying informed and actively participating in conversations surrounding AI in underwriting life insurance policies, we can help ensure a fairer and more transparent system for everyone involved. Remember: your voice matters in shaping the world of tomorrow.
Postscript
Hi, it's the real Dean Lambert. All of the content you read prior to the Postscript was generated through the use of a platform called Copymatic. I completed a form containing the title, subheadings and keywords. Here are my specs:
- 350 to 600 words (this is 800+)
- Keywords: risks, benefits, efficiency, regulation, security, underwriting, life insurance, discrimination
- Title: "Sick of All This Talk About AI?"
- Subtitle: "You're not alone"
- The generator created the sections and content organized by section
It took 1 minute, 35 seconds to generate this searchable, strong-keyword, plagiarism-checked article. I can tell you that this first attempt does not evoke my writing style; it's personable but a little clinical. It gets some points across but feels rudimentary. Not something I would present to CEOs, but a decent general piece for life insurance staff.
What are your thoughts? A little scary, no?
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