Home Finance First Canadian Life Insurer to Underwrite Using AI

First Canadian Life Insurer to Underwrite Using AI

With the ongoing adoption as well as research and development in artificial intelligence, the insurance space appears not to be left out considering Manulife’s recent move. The company revealed its re-entry into the whole life insurance market thanks to its participating policy product. What’s more, the insurance company stated that it would be utilizing artificial intelligence (AI) algorithm in its underwriting process.

The recent announcement by Manulife was aimed at further reinforcing the company’s leading rank in the Canadian insurance space. Its Manulife Par participating whole life insurance policy served as the primary component of the entire plan. It launched the product with the hope of capitalizing on a market that covers more than half of Canada’s insurance sales. Manulife looks forward to capturing a significant share of this market through its product.

According to Alex Lucas, Manulife’s head of individual insurance, the insurer boasts a solid 130-year background of both leadership and innovation in the insurance space. He also stressed that the company anticipates substantial growth from its new par product and its recently developed Manulife Vitality program. Furthermore, Manulife looks forward to enhanced efficiencies due to the launch of its new artificial intelligence (AI) tool, which is intended for underwriting. In fact, the tool is expected to drastically minimize the turnaround times for most of its customers’ applications.

Lucas also emphasized that Manulife would use its Artificial Intelligence Decision Algorithm in underwriting its Par whole life insurance policy. Thanks to this algorithm, the company is currently the first life insurer in Canada to leverage artificial intelligence in underwriting, which is no small feat. Manulife also highlighted in its announcement that the AI would take advantage of its many years’ worth of internally analytics capabilities and underwriting data to streamline the basic life insurance buying process. This marks an improvement that Manulife hopes will help to address the current protection gap that exists in Canada.

Manulife’s head of individual insurance stated that the insurer sees numerous opportunities in Canada, especially when it comes to making insurance not only easier to purchase but also more appealing to own. Alex Lucas further stated that Manulife is confident enough that it has all the innovative solutions that Canadians require thanks to the unveiling of its Manulife Par whole life insurance product as well as its continued investment in efforts of modernizing its businesses.

Aside from its re-entry into the whole life insurance space, Manulife also stretched out its Manulife Vitality program to all its term plans and products in a move that seeks to expand all the rewards involved in the program during the oncoming months. The program is projected to give Canadians a sense of encouragement as far as living a healthier life is concerned. The Manulife Vitality will do so by providing them with the chance to get discounts on their insurance policies and access an increasing set of reward partners.

Manulife is not the only insurer that appears to be exploring AI technology. In fact, more companies can be expected to apply this groundbreaking technology in their day-to-day operations in an attempt to boost the efficiency of their services and customer experience.

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KC Cheung
KC Cheung has over 18 years experience in the technology industry including media, payments, and software and has a keen interest in artificial intelligence, machine learning, deep learning, neural networks and its applications in business. Over the years he has worked with some of the leading technology companies, building and growing dynamic teams in a fast moving international environment.
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