4 Keys to Faster Growth in Underwriting Modern Consumers
When it comes to insurance distribution today, we have to become more agile. We have to embrace the reality that modern consumers are expecting faster and more dynamic processes and experiences when they shop.
How can carriers start adopting a new approach to distribution?
In this episode, we speak with Zach Pugh, Director of Underwriting at Ethos Life, about his company’s philosophy that is driving explosive growth.
Join us as we discuss:
4 things that have helped Ethos grow so much so quickly
Ways to leverage electronic records and medical data during distribution
How companies can accommodate modern consumer expectations shopping for insurance
The future of underwriting
Ready to tap into exponential growth? Let’s drill down into Zach and Etho’s unique visions for the industry.
“What’s got me excited is that the solution does work, we are hitting a different population that really is buying insurance for the first time.”
— Zach Pugh
Increasing the pace
Zach has been in the industry long enough to know what’s what. With experience at Mutual of Omaha and other mega-insurers under his belt, he was an early adopter of automation and predictive analytics.
At Ethos, Zach’s mastery of technology is the perfect match for the lightning-fast processes they’re utilizing to improve the entire customer journey.
Vastly more agile than traditional models, Ethos is fulfilling the massive consumer demand for frictionless satisfaction.
Four elements
How has Ethos reached this new height of growth so fast? With a powerful four-part mix, according to Zach. It’s a shockingly simple formula:
Stay true to your vision
Build a superlative team
Adopt a fluid, agile methodology
Forge strong partner relationships
The insurance market is thriving, and Ethos is leading the pack with its incredibly forward-thinking digital distribution model.
“In the future, we're probably going to be looking at risk from multiple perspectives.”
— Zach Pugh
A leap of faith
COVID changed so many aspects of life, and companies have to innovate now or risk becoming less relevant over time.
Zach states that it’s crucial to look at your risks from a new angle. Dive head first into the transformation to a tech company if you want to survive, because it’s going to happen regardless.
Meaningful data analysis can help you provide immense additional value as well as help pinpoint the weak points in your overarching business strategy.
Modern expectations
With the shift to remote work, people no longer want to buy insurance in the traditional way, nobody has time for that — and they certainly don’t want to sit through a mind-numbing sales pitch.
Zach says one of the basic things to do is figure out how to engage customers through a totally digital perspective.
Everything is changing, especially the risks, and the insurance industry needs to catch up. Ethos is leveraging its wealth of data to create a more dynamic and individually-tailored process.
New approaches to risk
Consumers are becoming more complex. Overall health, a concept of mortality, and medical advancements all influence individual behavior, and that renders the old way of risk assessment pretty much broken.
It’s vital to target people who are yearning for a completely different insurance experience and develop the products they truly need.
“All those relationships are really important to make us successful so we could make our process smoother for our customers.” — Zach Pugh
The secret sauce
Zach emphasizes that underwriting has to be specific to the individual, no matter how much data and automation you deploy.
You have to collect the right kind of data to be sure you’re offering maximum value.
Ethos looks at underwriting from two angles: amorphous risk versus bringing your customers the right product at the right price.
What gets Zach excited is all the potential for new customers through more tailored underwriting, and being able to provide coverage that’s both useful and affordable for the chronically uninsured.
Instant insurance will be the new norm
Getting new people into the market is essential for the insurance industry because unfortunately there comes a time when every customer you have will no longer need it.
No one 15 years ago would have imagined that insurance companies would harness social media as a way to more deeply connect with their customers.
Yet Ethos is using Instagram and other digital channels to reach out to a much wider range of consumers — those that are more likely to disdain traditional advertising, as well as those less likely to have adequate insurance coverage.
Zach has a lot of appreciation for multi-channel marketing that leads to multiple distribution channels and supercharged revenue generation.
There will always be competition in the insurance world. But there’s also an enormous uninsured population, and the more coverage that exists, the better it is for the industry.
“Underwriting’s going to be very fluid. The way we look at process and everything else, I don't think it's going to be ultimately transactional. It's about where we could provide the most value and provide the best rate for the individual.” — Zach Pugh
To hear more interviews like this one, subscribe to the Digital Insurance Innovator Podcast on Apple Podcasts, Spotify, or your preferred podcast platform.
