New #insurtech Ladder is digitizing life insurance

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The US insurtech sector has grown far more quickly than its UK and European counterparts, mostly due to the size of its insurance market and its high costs.

Now, another US insurtech is stepping in to make one of the most expensive forms of insurance more accessible, according to press releases seen by and interviews conducted by BI Intelligence.

California-based Ladder allows users to get a quote and apply for instant life coverage online or via mobile in a matter of minutes, with policies that range from $100,000 to $8 million, and from 10 to 30 years. Ladder launched on Tuesday, and is so far available only to California residents.

Ladder is targeting young consumers who need life insurance but find the current system too expensive and time-consuming. Historically, buying life insurance required multiple in-person meetings with brokers, manual paperwork, and waiting times of circa six weeks for coverage to take effect, with most incumbents encumbered by inefficient legacy systems. This has particularly deterred younger, working consumers who are starting families — people likely with a need and desire for life insurance, but even less time than most for the lengthy process. This is the group Ladder is now targeting. Jamie Hale, Ladder CEO, cites a LIMRA (a global FSI association) study which found that, as a result, there are 19 million "stuck shoppers" in the US who cannot buy policies despite needing them.

Ladder aims to solve this problem in several ways:

• Streamlining the application process. Applicants fill out a short questionnaire with details such as gender, age, whether they smoke, and a rating of their overall health. Live personnel can also be contacted to answer questions. This speeds up documentation and approval times. If a medical examination is required, Ladder dispatches a medical professional to a place and at a time chosen by the applicant. 
• Lowering costs. Ladder does not charge annual policy fees, unlike most incumbents. It also offers term rather than whole policies — th

via www.businessinsider.fr