Climbing the Ladder of Digital Insurance

As I’ve mentioned before in previous blogs, technology is tightening its grasp on our everyday lives. We are in the midst of a technological revolution where companies and industries who once believed they could survive without technology are now finding themselves inundated by it. And in order to survive, they must adapt. Now, this may sound rather dramatic, but it is nonetheless true. One such industry dealing with the effects of technology is that of life insurance. From cloud-based computing to digital applications, insurance is seeing a large overhaul in technological advancements and updates. And one startup is looking to change the landscape of insurance as we know it.

Ladder, an insurance startup, is a strictly online and digital insurance company whose main goal is to simplify the process of choosing an insurance policy. The application allows users to get a quote and apply for instant life coverage either online or through the mobile application in mere minutes. The policies available range anywhere from $100,000 to $8 million, and from 10 to 30 years.

While this may sound strange to some, the application is being targeted to younger users, who are in need of life insurance, but believe the current system is too expensive or time-consuming. Traditionally, obtaining life insurance has been a long, tedious process, requiring several meetings with brokers and manual paperwork and wait times of up to 6 weeks for policies to take effect. This has severely detracted younger users from purchasing insurance, even if they are in desperate need of it. A recent study by LIMRA (a global FSI association) found that, because of the archaic system, there are an astounding 19 million “stuck shoppers” who cannot buy policies. This is what Ladder seeks to change.

They plan on changing the industry in two major ways. Firstly, through streamlining the application process. No longer are the days of multiple back-and-forth meetings and phone calls. Ladder provides a questionnaire for new applicants, with live agents ready to assist upon request. If the applicant requires a medical examination, a healthcare professional is contacted and an appointment is scheduled. And that’s pretty much it. Secondly, Ladder is lowering costs! They offer term policies, as opposed to whole, add-on policies, and the ability to extend the term policy later on.

Ladder could prove incredibly dangerous to major insurance companies. Should they fail to react and provide similar services to their policyholders, Ladder could potentially grab a large chunk of the market share. LIMRA also estimates that those same “stuck shoppers” account for an astonishing $16 trillion coverage gap in the U.S. If Ladder can capitalize on the mistakes made by larger, legacy insurance companies, they could be the new face of life insurance.

If you are interested in learning more about Ladder, visit their website here.