Every day, John C.’s smart watch tracks key factors including how his pulse and temperature fluctuate, how much sleep he gets, and how many steps he takes. All of this provides an overall view of his health and well-being. With John’s consent, that data feeds directly into his life insurer’s data system, allowing them to assess his longevity potential in real time. His premiums are based on his own unique health characteristics, not an average or a guess, and he gets a discount if he becomes healthier1.
That’s not science fiction. It’s a real-life example of how technology is transforming the life insurance industry by making it more customized, efficient, and faster than ever at processing claims.
Here are some of the key advances currently transforming the insurance industry and what they might mean for consumers.
By harnessing the power of big data, insurers can now assess risk more accurately. They can incorporate a wide range of factors including medical history, lifestyle choices, and social media data to better understand an individual's risk profile. That means premiums more accurately reflect specific risks, not just the broad characteristics of an age group or gender.
AI and machine learning help life insurance companies evaluate applications and underwrite policies in days, not weeks. Because insurers employ accelerated underwriting processes to sift through data and health records quickly, they can approve and price your policy quicker than ever before.
You’re healthy now, but how likely are you to experience problems like heart disease or certain forms of cancer in the future? Insurers can now use predictive models to assess the likelihood of an individual facing specific health issues. This helps in setting appropriate premiums and coverage amounts based on the estimated risk.
Healthcare is moving online with more people seeking treatment in the convenience of their own homes through telemedicine. Just as important, electronic health records mean your health data is always available online even when the doctor’s office is closed. This can make underwriting insurance easier and more accurate. Underwriters can access real-time health information and medical records through your healthcare portal.
Advances in genetic testing enable underwriters to better understand an individual's genetic predispositions to certain health conditions. This information can be used to tailor insurance offerings and pricing.
Technological advances are making insurance better than ever before with more accurately priced, relevant products and 24/7 automated service support. But it’s also getting more complicated. In this fast-changing market, you may need the help and guidance of an experienced professional.
Financial professionals offer guidance to help you sort through the available policies and choose what best fits your situation. They can guide you through the underwriting process and provide valuable insights to find the right coverage.
They also get to know you well enough to provide personalized guidance. Your financial professional will spend time learning about your own unique situation and recommend policies aligned with your financial goals, lifestyle, and health status. This tailored guidance can be crucial in obtaining the most suitable coverage.
Financial professionals can also offer access to multiple insurers. They often work with several different insurance companies and provide a broad range of products. This allows you to compare options and find policies that offer the best combination of coverage and premium amount.
An experienced financial professional can serve as your advocate during the underwriting process. They know how underwriters work and what they need. They can help gather necessary information, address concerns with underwriters, and facilitate a smoother application process.
Financial professionals are also available as a resource long after you purchase a policy. They can provide ongoing support, helping you resolve problems and find the answer to questions. A good financial professional will also periodically reassess your coverage with you, making sure it continues to meet your needs.
The life insurance industry is evolving rapidly as underwriters put cutting-edge technologies like AI and data analytics to work for faster, better, and more customized service and more tailored products.
You can make sure you’re getting the most out of the industry’s innovative new processes and products by working closely with a financial professional. This adds value by providing expertise, personalized guidance, access to a variety of options, and support throughout the underwriting and policy management journey.
This article is provided for general informational purposes only. Neither New York Life Insurance Company, nor its agents, provides tax, legal, or accounting advice. Please consult your own tax, legal, or accounting professional before making any decisions.
SMRU #6453176 exp. 4/12/2026