Humania offers $1 million of coverage in 15 minutes

par Andrew Rickard Matt Bell | October 26 2016 01:30PM

Humania Insurance has launched a new term life insurance platform called HuGO, which aims to approve 65 per cent of clients within 15 to 45 minutes in a new innovation by the company. Advisors using HuGO will be able to offer up to $1 million in term life insurance. The insurance will be distributed online through the help of an advisor and won’t require paper or signatures.

"Three years ago, Humania Assurance set the standard for its first web platform, Humania Assurance - Insurance Without Medical Exam targeted specifically to a non-insurable market", says Kim Oliphant, Vice-President of Sales and Marketing . "With HuGO we are aiming to insure all consumers."

Term Life Insurance

HuGO offers term life insurance for 10, 15, 20, 25 or 30 years, with a guarantee and renewable bonus. HuGO products are also convertible and exchangeable to a T100. In addition, HuGO provides for disability insurance to cover debts and critical illness insurance.

Drawing on an experience rating, advisors will be able to offer clients up to $1 million with no formal requirements. A term policy with a fixed rate up to 80 years is also available.

65% of customers approved on the spot

HuGO uses three different categories for clients. The first is "Hyperjet," where the policy is issued in 15 minutes. For "Express", the transmission time is between 15 to 30 minutes. In the case of more complex situations (program "Referred"), a personalized questionnaire will be sent to a team of underwriters who can, if necessary, request additional information depending on the customer profile.

In total, Humania hopes to approve 65 per cent of customers on the spot who will receive their contract in the following days by mail. Clients using HuGO will not be able to purchase insurance directly from HuGO but will still need to go through their advisor or contact Humania who will recommend a local Humania advisor to them.

Predictive analytics for assessing risk

HuGO uses predictive analytics for assessing life risk and rendering decisions instantaneously at the point of sale on a significant percentage of applications (approximately 65% and up to $1 million of life coverage).

Humania says HuGO will be the first and only company to offer personalized underwriting, and promises that even in more complex cases, underwriting requirements are based on the risk profile of each client and not automatically based on an age and amount chart.

An algorithm will analyze the risk profile by only asking appropriate questions and eliminating those that do not apply to the client. The goal: to accept the client’s application quickly with the fewest possible requirements. The Canadian-made software behind HuGO took over two years to develop and test.