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  • Writer's pictureKenneth Cochrane

The Change is Here

Disruptive technologies in annuities and life insurance are innovations that will fundamentally change the way they are designed, distributed, on-boarded, and managed. These technologies aim to improve efficiency, transparency, accessibility, and customization in these markets. I wrote last week about disruptive technologies, siting some of Gartner’s predictions of the most disruptive during the next 5 years. The two that stuck out to me as it relates to annuities and life insurance are blockchain technology and disposable technologies. 


While blockchain technology offers transparent and secure transaction records, which can enhance the trust and transparency of life and annuity contracts. Contracts built on blockchain technologies can also automate various  elements of annuity and life administration, such as RMDs, and beneficiary designations. Leading to  reduced administrative costs and processing times. Blockchain can then act as a catalyst to employing artificial intelligence, machine learning, CRMs, and predictive analytics among others.


The other disruptive innovation that will have a significant impact on the way annuities and life insurance are sold is disposable technologies. Employing and evolving APIs will allow carriers to replace portions of their technology stacks in a very straight forward, relatively seamless manner. Legacy systems will become a relic of the past as new administrative tools are incorporated with less disruption and cost to the business. Advisor appointment will be a plug in module. The advisor’sRIA or IMO’s CRM will auto populate applications. Suitability or underwriting will be rules based and completed prior to the application submission. Contract funding will occur the next business day and contracts will be sent electronically when funding is received.


Annuities and life insurance are great tools to building a bullet proof financial plan. While carriers have traditionally made them complex and difficult to purchase, disruptive technologies are forcing carriers to improve the advisor and client experience. The innovations will also simplify the ownership experience. Making the purchase and ownership of annuities and life insurance straight forward and intuitive, will lift these markets to expand. 

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