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business Thursday 3 december 2020

COVID-19 accelerates no-exam trend in life insurance

By GEORGIA ROSE WHAT TO CONSIDER WHEN
of NerdWallet CHOOSING A POLICY
Big data is playing a promi- When you shop for life insur-
nent role in life insurance ance, be sure to ask how
this year. the policy is priced. Both
Interest in coverage has instant-answer and fully
surged during the pandem- underwritten policies have
ic, but for many people, so- pros and cons, and your
cial distancing mandates specific needs will dictate
took the life insurance what is right for you.
medical exam off the ta- Before you apply, ask your-
ble. As consumers look for self these questions:
quick, noninvasive ways to HOW FAST DO YOU WANT
buy policies, insurers have COVERAGE?
turned to accelerated un- If speed is paramount,
derwriting, a process that consider instant-answer
uses algorithms instead of policies that solely use big
exams to evaluate appli- data and never require an
cants. exam. You will get an an-
While accelerated under- swer quickly, although the
writing isn’t new, more than answer may be no.
a third of life insurers have “What big data is providing
expanded it due to the In this Friday, Nov. 27, 2020 file photo, shoppers wear protective face masks as they walk past a people is speed,” says Be-
social distancing sign at the Ellenton Premium Outlet stores in Ellenton, Fla.
pandemic, according to a Associated Press stow’s Morales. Nearly 85%
study by the Society of Ac- of people who apply for a
tuaries. And no-exam life John Hancock Insurance. Jackie Morales, chief insur- considered fully underwrit- Bestow policy do so on a
insurance appeals to many This changed as the world ance officer for Bestow, an ten, even if you don’t take mobile device, she says.
people. “They want it to be became steeped in big insurer that uses acceler- an exam. HOW MUCH DO YOU WANT
fast and easy,” says Gina data. Insurers now typical- ated underwriting. 2. TO PROVIDE INSTANT AN- TO PAY?
Birchall, chief operating of- ly check your prescription HOW ACCELERATED UNDER- SWERS. Insurers like Bestow A policy with full medical
ficer for the life insurance drug history and data from WRITING WORKS use information from your underwriting is likely to be
trade group LIMRA. the MIB Group, an infor- Companies typically use application and big data the cheapest option. If the
Accelerated underwriting mation-sharing service for accelerated underwriting algorithms to assess risk, insurer chooses to use ac-
can help you get life insur- insurers. Companies may techniques in two ways: and never require a medi- celerated underwriting to
ance quickly online, but also consider non-medical 1. TO FAST-TRACK HEALTHY cal exam. Coverage is not fast-track your application,
there are caveats. What data, such as your credit PEOPLE’S APPLICATIONS. guaranteed, but the appli- you are not penalized; your
you gain in speed, you may history, driving record and Many major carriers ap- cation process is fast and price and product will likely
lose in flexibility and price. shopping habits. Algorithms prove low-risk applicants you often get an answer be the same as if you had
HOW BIG DATA HAS then combine these data based on big data and within minutes. taken the exam, Hallett
CHANGED LIFE INSURANCE points to quickly determine then require medical ex- Accelerated underwriting says.
Traditionally, buying life eligibility and cost of cover- ams for everyone else, is not to be confused with Instant-answer policies may
insurance was a lengthy age. says Jeremy Hallett, CEO “simplified issue” life insur- not offer rates in the cheap-
process involving blood- This data can be tricky to of Quotacy, a life insur- ance, which considers the est brackets since the insur-
work, urine samples and dissect, but industry experts ance broker. On average, answers on your applica- er doesn’t have the option
long waits for approval. “It expect the trend to grow. it takes nine days for an tion but doesn’t tap into of a medical exam to get
was probably the hardest “The more information we insurer to reach a final de- big data. These policies more information. But Mo-
or most difficult product have, the deeper the data cision using accelerated typically cost more and of- rales says, “Some people
to buy left in the modern that we have, the more underwriting instead of the fer less coverage than stan- will trade off that ability to
economy,” says Brooks Tin- capable we are of mak- traditional 27, according to dard policies because they get a fast decision at a rea-
gle, president and CEO of ing sound decisions,” says LIMRA. These policies are rely on limited information. sonable price.”q
Walmart drops $35 minimum for its members’ online orders

By ANNE D’INNOCENZIO Amazon’s Prime member- same day. Walmart, based
AP Retail Writer ship program. Walmart+ in Bentonville, Arkansas,
NEW YORK (AP) — Shop- members will receive free has a ways to go to catch
pers on Walmart.com who next-day and two-day up with Amazon Prime.
pay a $98-a-year member- shipping on non-perishable Launched in 2005, Prime
ship fee will get free ship- items shipped by Walmart, has more than 150 million
ping on orders of any size no matter the purchase members worldwide who
starting Friday. amount. The move builds pay $119 a year, or $12.99
Walmart announced on the retailer’s pledge to a month, for faster ship-
the membership perk on continue adding benefits ping and other perks, such
Wednesday, doing away to its membership program, as discounts at Amazon’s
with a previous require- which also includes unlim- Whole Foods supermarkets.
ment that orders amount ited free grocery deliveries Janey Whiteside, Walmart’s
to at least $35 to qualify for and fuel discounts. chief customer officer,
free shipping. However, delivery directly declined to provide a
The perk comes two months from Walmart’s brick-and- membership number for In this Nov. 18, 2020 file photo, a woman, wearing a protective
after Walmart launched mortar stores on basic items Walmart+, but said that re- face mask due to the COVID-19 virus outbreak, wheels a cart
its membership service like fresh groceries will still moving the $35 threshold with her purchases out of a Walmart store, in Derry, N.H.
called Walmart+, which it carry a $35 minimum and was something customers Associated Press
hopes will compete with can come as soon as the wanted.q