The Psychology of Direct-to-Consumer Life Application: Accuracy
April 12, 2022 by Peter Hovard
- Life insurers need complete, accurate information about an applicant to assess risk.
- The advisor-led application process may increase the odds of some kinds of application disclosure failures.
- The direct-to-consumer approach can lead to other types of disclosure failures.
Behavioral science is helping life insurers with an important task: confirming that life insurance applicants have disclosed information factually and correctly.
Life insurers are increasingly offering direct-to-consumer, or direct-to-consumer, application processes. That’s trend accelerated during the COVID-19 pandemic.