Ever since the inception of life insurance services for the general public, the realm of annuities has been steered predominantly by copious quantities of paperwork and hour-long calls essential to establishing trust and credibility — no doubt a draining craft for all parties concerned, be it the insurance companies, agents, or even consumers.
Nevertheless, it is the onset of efficient and effective software that has been swiftly rectifying the terrain, finding the most fruitful alternative to the conventional methods so commonly used in the annuity industry.
Not only does this software — commonly known as insurance technology, or insurtech — provide the sincerest way for agents to build trust with a client, but it does so in a matter of seconds, combining the needs of all parties involved in the insurance transaction.
It offers a wide range of top retirement plans for consumers, adapted to their desires and financial capabilities, enabling companies to carry products of superior quality whilst vitally maintaining control of their distribution.
Companies such as, frankly, mine (Annuities Genius) are leading the charge in developing these revolutionary systems.
Whereas convention would have agents and consumers alike spend hours or even days muddled in chaotic research, the insurtech software provides one stable ecosystem with the potential to usher a whole industry together.
The Traditional Approach to Selling/Buying Annuities
First and foremost, it is crucial to establish a foundational understanding of the traditional methods employed by financial agents and insurance companies in order to better comprehend the opportunities presented by the digital era.
Yet over the years, the action of purchasing annuities has become widely recognized as an intricate and time-consuming task, often leaving the consumers confounded, searching for proficient experts who can grasp the nuances required to make informed decisions.
This intricacy stems from a few factors:
Complexity of product offerings: Annuities come in various forms with multifaceted features, such as immediate, deferred, fixed, variable, and indexed annuities.
For individuals without financial expertise, understanding the details of these options, their associated fees, and the potential benefits can be challenging.
Underwriting and approval: Annuity contracts often involve underwriting, a process where the insurance company assesses the applicant's risk profile.
This can include medical evaluations and financial background checks, which can be an exasperating process.
Documentation: Traditional annuity purchases typically require substantial paperwork, including application forms, disclosure documents, and legal contracts.
Completing and reviewing these documents can be a time-intensive task.
Regulatory compliance: Annuities are subject to strict regulatory oversight and compliance policies.
This can lead to additional layers of administrative work, due diligence, and compliance checks.
Establishing credibility: Agencies and insurance enterprises must work on building trust with their clients due to the significant financial commitments and long-term contractual relationships required from the consumer.
This can only come by understanding both the client's financial goals and the complex nature of the various annuity products on the market.
The Power of Insurtech: Streamlining Annuities
Small wonder that the annuity industry has finally been given a remarkable opportunity to evolve — the catalyst for transformation being insurtech.
For insurtech companies, the process isn't merely simplified, it's empowering — providing consumers with personalized, efficient, and secure solutions.
It provides a newfound landscape where technology meets financial peace of mind.
Through the power of data analytics, artificial intelligence, blockchain technology, digital advisors and more, insurtech is revolutionizing the way annuities are bought, managed, and understood.
A few of the major insurtech innovations include:
Simplifying product complexity: Insurtech platforms use user-friendly interfaces and educational tools to clarify complex annuity offerings.
They break down intricate features and fees, making it easier for non-financial experts to comprehend the nuances of various annuity types.
Modernizing underwriting: Insurtech leverages data analytics to expedite the underwriting process.
David Novak is the CEO of Agatha Global Tech, the Laguna Hills, California-based company that created 
