Digitalization in Life Insurance Distribution: Assumption Life's Story

Thought Leadership | November 6, 2024

Digitalization in life insurance distribution has moved beyond buzzword territory – it’s a cornerstone of innovation and growth.

For carriers, digital distribution channels offer a powerful way to extend reach and increase policy sales, gain efficiency, and meet rising consumer expectations for convenience and flexibility. This trend has only intensified post-pandemic, as consumer behaviors have leaned heavily toward digital interactions and carriers have put growth front-and-center as a major priority.

But, how does this actually play out in practice? We’re glad you asked.

In this article, we’ll walk you through the real-life success story of Assumption Life, a Canadian mutual life insurer and Lavvi partner. Assumption Life has successfully modernized its approach to distribution, demonstrating how digitalization in life insurance can empower carriers to accelerate growth while meeting the evolving needs of customers.

Here’s what we’ll talk about:

Understanding digitalization in life insurance distribution
Assumption Life’s path to success
Key learnings for carriers

Let’s dive in.

What is Digitalization in Life Insurance Distribution?

Digitalization in life insurance distribution refers to using digital channels and tools to sell policies more effectively, creating a streamlined experience for advisors, consumers, and carriers alike. This approach includes various models such as advisor-led, direct-to-consumer (D2C), and hybrid sales, each catering to distinct consumer needs and preferences.

In the current environment, digital distribution in life insurance is no longer just an option but an essential strategy for carriers aiming to capture market share and increase sales. Broader reach, quicker policy issuance, and supporting advisors with the tools they need to engage and sell more effectively are all benefits that come with digital distribution.

Additionally, digitalization allows consumers to explore, compare, and purchase policies online. This shift meets growing demand for accessible, easy-to-navigate insurance options, where consumers have the flexibility to engage on their terms.

The pandemic accelerated the adoption of digitalization across many sectors, and life insurance was no exception. Carriers were forced to adapt rapidly. Digital distribution channels emerged as vital pathways for growth, allowing insurers to continue reaching consumers despite physical constraints and shifting consumer expectations.

Going forward, digital distribution will remain a central focus for the industry, as more carriers recognize the necessity of offering fast, flexible, and reliable digital experiences to consumers.

Assumption Life: A Digital Distribution Success Story

Assumption Life serves as a powerful example of how carriers can pursue life insurance digitalization to expand reach, improve efficiency, and increase policy sales.

With over 120 years in the life insurance business, Assumption Life recognized the need to modernize its approach to meet evolving customer expectations and expand into new markets.

So in 2003, the company took its first major step toward digitalization in life insurance by introducing e-apps. This move enabled partners and advisors to streamline the application process and connect with a broader audience outside the Atlantic Canada region.

Assumption Life chose to focus on simplified, quick-issue products that aligned well with digital channels, such as policies designed for family-oriented, mid-market needs like final expense and mortgage protection. This digital-first approach allowed Assumption Life to reach a larger market with products that required minimal underwriting, establishing the company as an accessible choice for Canadians.

Expanding Digital Distribution Through Strategic Partnerships

Assumption Life partnered with Lavvi to further expand its digital distribution capabilities. With Lavvi’s support, the company launched Life Insurance Anywhere (LIA) in 2013, a platform that allowed advisors to engage clients wherever they were. This increased flexibility was vital for extending its distribution reach across Canada.

Assumption Life continued to focus on digitalization by transitioning to an API-driven system, which enabled seamless integration with distribution partners and direct-to-consumer (D2C) channels. Lavvi’s technology helped bring to life Assumption Life’s Marketplace Solution in 2019, allowing partners to create D2C websites where consumers could independently explore, apply for, and purchase life insurance.

Key Results for Assumption Life

Assumption Life’s focus on leveraging digitalization in life insurance distribution has yielded substantial results.

Expanded National Reach: By moving beyond its traditional Atlantic Canada market and embracing digital distribution, Assumption Life now serves clients nationwide, reaching both urban and rural areas without the need for a physical presence.
Higher Efficiency with Quick-Issue Products: The focus on simple, digital-ready policies enabled faster approvals, minimal underwriting, and reduced processing times. This approach increased advisor productivity while providing a streamlined experience for clients.
Stronger Partnerships through API Integration: By adopting an API-driven system, Assumption Life has been able to work with more distribution partners and seamlessly integrate its technology, fostering stronger relationships and expanding access to a more diverse consumer base.
Increased Direct-to-Consumer Sales: The Marketplace Solution empowered distribution partners to create customized D2C websites, allowing consumers to independently browse, apply for, and buy policies online, driving growth in D2C channels.

Learn more about Assumption Life’s success story. View the Case Study.

Key Learnings For Life Insurance Carriers

Digital transformation can often be a buzzword with minimal tangible results, but Assumption Life’s story offers valuable insights for other carriers aiming to evolve their digital distribution strategies.

Here are key takeaways from its journey:

Strategic Planning & Change Management Are Essential

Careful planning and training were crucial in ensuring a smooth transition to digital distribution. Assumption Life’s deliberate rollout of new tools and platforms minimized disruption by aligning stakeholders and preparing advisors to adopt digital solutions confidently.

For carriers, a focus on change management is essential in maintaining productivity and trust as they navigate digitalization.

Focus on Core Strengths in Distribution

Assumption Life focused first on products, like quick-issue policies, that were easily digital-ready.

Other carriers can benefit by honing in on their most adaptable product offerings, aligning them with digital channels to increase speed to market and scale in the future.

Adopt an API-Driven Framework for Flexibility

Assumption Life’s API-driven system allowed for seamless integrations with distribution partners and direct-to-consumer channels, creating flexibility without requiring extensive infrastructure changes.

For carriers, this adaptability is key to supporting an omni-channel distribution model and ensuring that new systems can integrate smoothly with existing tech stacks.

Engage in Strategic Partnerships

Rather than building all digital distribution capabilities in-house, Assumption Life’s partnership with Lavvi equipped them with the tools needed to effectively support both advisor-led and consumer-driven sales.

Collaborating with technology partners can improve a carrier’s ability to innovate and focus on core strengths, allowing faster, more cost-efficient adoption of digital tools.

Conclusion

Assumption Life’s journey into digitalization in life insurance distribution is a testament to the power of a focused, strategic approach. By prioritizing simple, digital-ready products, leveraging an API-driven system, and collaborating with a trusted technology partner, Assumption Life has successfully transformed its distribution model to reach a national audience while offering a seamless experience for advisors and consumers alike.

To learn more about Assumption Life’s story, check out the Case Study here.