The author is a freelance journalist and Google News PR specialist. He can be reached at contact@sitetrail.com. -- Ed.
The US has the largest insurance industry in the world, while the UK is the fourth largest. Between the two countries, they now represent almost 45% of the total world premiums in life and non-life policies.
Adapting to the demands of customers' needs, the insurance industries in the US and the UK have necessitated a shift from the original foundations of the insurance industry. Consumers want far more than just protection from losses incurred by unexpected events.
With this, and the development of a technology powered by data, the insurance industries in the US and UK are shifting their services and offering their clients new propositions. In the UK, insurance brokers need the authorization to advise on and sell general insurance products. In the US, a life insurance license or joint-life and health insurance license is needed, depending on the state.
This is how insurance companies are keeping up with the important changes in the insurance industry.
Personalized Insurance Offering New Solutions
Consumers demand a more personalized approach to their insurance products. This means that one-size-fits-all products are no longer relevant for them. Usage-based, all-in-one and on-demand products are gaining popularity because they offer far more flexible cover. Insurances are using their deeper understanding of customer behaviors for better risk assessment, the reduction of false claims, and personalized premiums, offering better value for their clients.
Technology and Faster Claims
Artificial Intelligence (AI) and Robotic Process Automation (RPA) have reduced the amount of paperwork needed. This does not only reduce processing times, but also minimizes fraud. The better insurance companies are at determining risks, the more profitability they have. Policy serving and claims management also become faster. Improved customer experience, better operational efficiencies, and cost optimization allow companies to become more competitive by presenting newer business models.
Insurers Become Active Risk Managers
Advanced analytics and tech-enabled data offer better insight into loss exposure for individuals. This allows for better pricing accuracy of insurance products and real-time feedback to encourage prevention.
Using Technology Practically
Secure data management has become essential in the insurance industry because of the huge amounts of data they process. This data also needs to be processed in real-time. This is where blockchain technology applications have brought significant changes to the industry. Other technological advancements that have brought significant changes are data analytics and the cloud.
Getting Insurance Licensing
There are several requirements needed to get a life insurance license. Applicants need to be at least 18 years old, and in most states, they need to complete a relicensing course before sitting for the state exam. Depending on the state, there is a specified amount of hours and the cost of the exam also varies. In all the states, the passing score is 70%.
In some states, applicants only need to pass the exam for life insurance, while in others, the exam is for both life and health insurance. By acquiring the life insurance license permit, applicants can sell annuities, term, and cash value (also called whole or universal) life insurance. In states where applicants get a life and health insurance license, they can sell all of the above life insurance products, and also products for medical expenses, loss of income from a disability, and long-term care needs.
Insurance courses are designed to help prepare candidates for the challenging insurance licensing exam. Courses vary, and several offer online, live virtual, and in-person learning. These courses have the learning tools and resources to ensure great results.
Kaplan Financial Education, ExamFX, and A.D. Banker offer insurance licensing courses that can help prepare applicants for the different exam topics. Typically, in most states, the exams include a section on general knowledge, and they test your knowledge of life insurance policies. Candidates are also tested on policy riders, annuities, and life insurance coverage options. Finally, the exam is likely to also test applicant familiarity with tax issues concerning life insurance and annuities.
Conclusion
Insurance companies need to maintain customer loyalty while also offering new products that meet the demands of their consumers. Besides their customized offerings, consumers also need access to friendly and knowledgeable staff. A life insurance licensing class is the best way to begin a successful career in the insurance industry.