Life insurance robo-adviser Anorak has announced partnerships with adviser platform LifeQuote and API provider TrueLayer, signaling the opportunity the start-up has in disrupting life insurance distribution, according to GlobalData Financial Services.
Anorak is a London-based robo-advice start-up that aims to make life insurance more accessible to UK customers through data science and machine learning.
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By GlobalDataAfter asking a short number of lifestyle questions, customers are recommended the protection insurance they require, the level of cover they need, and how long it should last. It then scans policy documents from major insurers to help customers choose and buy the best policy for them.
After only launching in 2017, it seems that Anorak is set to take the protection industry by storm. Buying life insurance can be complicated, and consumers and other industry players alike are seeing the potential of the start-up’s robo-advice service in simplifying decision making.
Anorak recently announced a partnership with LifeQuote. The advisor protection platform will integrate Anorak’s robo-advice model into its own in order to provide advice and match customers with the right policy.
This means that Anorak has not only positioned itself as an independent robo-advice platform in its own right, but it has also expanded its reach to support the adviser channel.
Anorak has allowed LifeQuote to form a hybrid advice model where human advisers are supported by technology, and will be especially valuable to advisers who see a client need, but are not comfortable in providing complaint advice.
It will also improve LifeQuote’s ability to provide a direct-to-consumer service in addition to advised sales.
But it seems that Anorak is not likely to stop here. Another partnership has been announced with TrueLayer, a financial API provider.
This marks one of the first applications of PSD2 rules facilitating open banking in the life insurance market. It evidences that more partnerships are soon to come with other financial service providers that will provide a link to Anorak’s service.
For instance, Anorak could join Starling Bank’s marketplace API line-up alongside Habito and PensionBee, among others.
API partnerships with large-scale, existing providers is a smart and timely move for Anorak as it will enable it to rapidly achieve a wide customer reach. It is hoped this will help narrow the advice gap and improve uptake of life insurance in the UK.
The life insurance market has long been awaiting disruption and it seems that Anorak is here to bring it. The winners will be those that recognize the potential and partner with the service.
For more insight and data, visit the GlobalData Report Store(https://www.globaldata.com/store/) – Verdict is part of GlobalData Plc.
For a link to a recent GlobalData report on Robo-Advice in Retirement, Pensions, and Protection, click:
https://www.globaldata.com/store/report/fs0117ia–robo-advice-in-retirement-pensions-and-protection/
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