Life insurance is broken. Smart data will fix it.
Nobody likes to think about dying. As human beings we’re just not wired that way. So when it comes to death-related decisions like taking out life insurance, millions of us are turning a blind eye.
Fine. I get that. But if you break it down to the basics, life insurance is what will give your family the financial stability and security should the worst happen. Yet we’re more inclined to insure our phones than get the right cover for ourselves and our families. In fact, 8.5 million breadwinners in the UK don’t have life insurance in place to protect their loved ones should something happen.
So why the lack of engagement?
If you’ve ever been through the process, you may understand: it’s a universe of confusing products, insurance jargon and painstaking user experience (if we can call it that). Even when you know you should sort out your life insurance, it gets pushed to the bottom of the to-do list, because, well, life takes over. For that reason, it’s often actively sold, not proactively bought.
Many people don’t even get to that stage, because there’s a complete lack of awareness that life insurance is something available to them. There’s a misconception that it’s expansive or, because you often have to go through a financial advisor, that it’s only for the affluent. That means many don’t explore options at all. Somewhere along the way, the life insurance industry lost sight of its customers. Clarity and trust dropped off the menu.
At Anorak, we’re rethinking the way this conversation is handled.
Our vision is to build the world’s smartest insurance companion and redefine the way millions protect their future. To put people back in control.
To do this, my co-founder Vincent Durnez and I have pulled together a team of experienced data scientists, software engineers, insurance actuaries, designers and writers — people who wouldn’t normally be found in a room together. And as a team, we’re building a new model for buying life insurance that enables all of us to make the right choice, not just the cheapest.
Through advanced data science and machine learning, we’re giving everyone access to tailored advice about their life and their risks. Not only that, but we’re looking at how to integrate it seamlessly into people’s digital lives. For example, by partnering with existing services, like online banking and e-commerce, Anorak can come to you at just the right moment, when you already have these ‘big’ things on your mind (and not with a cold call as you’re about to head into a meeting).
So how does it work?
The most important aim for us is to figure out exactly what kind of protection you need. So we gather the necessary data from you about your family, home, income and finances. This way we can quickly build an accurate profile to assess how much cover you need, for how long and why. Then, having scanned policy documents from all the major insurers, and analysed hundreds of pages of smallprint, we find the best policy to suit your circumstances. We’re independent so there’s never any pressure to buy; you apply when you’re ready.
We think the journey should be as transparent and straightforward as that.
Getting life insurance remains a grown-up decision — about life, finance, future, and, of course, death. We’re simply giving people the confidence to make it an informed one.
Developing a service like this is not easy. There will be some trial and error. And we certainly don’t claim to be turning life insurance into a fun subject that everyone will be talking about at the pub (although you’ll probably find our team doing so).
But if we don’t try, millions of families in the UK will continue to be left at risk. And we think everyone deserves the opportunity to plan for the unplanned.
