The startup insurance application processor Quilt has added a life insurance product to its portfolio and has begun pitching its digital enrollment in 37 states across the country.
In partnership with Generation Life (a 50-year-old insurance company that was recently acquired by Swiss Re), Quilt is looking to make the process of applying for life insurance easier so that the under-insured population of millennials can have the coverage they need.
Quilt’s digital application can cut the approval process for life insurance policies of up to $1 million from months to a mere 15 minutes, the company said.
The company wouldn’t say what would make someone ineligible for a policy, but noted that “many” of the company’s existing customers could qualify for approval online.
“We are thrilled about this new collaboration and look forward to working with Quilt. Together we will provide high quality products and services to help more young people get life insurance and protect their families,” said Philip Walker, CEO of Generation Life Insurance, in a statement.
Walker, who also serves as the chief executive officer of iptiQ Americas by Swiss Re (according to his LinkedIn profile) has a long history in the insurance business… and the connection to Swiss Re is invaluable for a company like Quilt.
It’s important to note while Quilt is selling life insurance products, it’s not handling the policies themselves.
Basically the company is trying to create a better user experience for new customers, rather than reinvent the policies themselves.
The company launched in 2016 with a renters insurance portal that would speed up the approval process for that type of insurance product. Now, with Generation Life, the company is expanding into its second insurance vertical.
Ultimately, Quilt wants to partner with one insurance provider across a range of categories including travel insurance and pet insurance next in line (not necessarily in that order).
And while Quilt won’t hold the policies, it will handle the process of settling claims in most categories (life insurance… is a different animal, according to Quilt chief executive Blair Baldwin).
And while insurers get a bad rap, Baldwin says it’s mostly undeserved.
“The big carriers make all of their money on their investments,” Baldwin says. “They target 10% returns for the policy business…. They’re really not trying to screw the customer.”
In a sense the industry is maligned because it’s outdated and misunderstood, according to Baldwin.
“You can say what you will about legacy organizations where the average age is 57 and they’re all predominantly older, white gentlemen. They’re trying to run a business and they’re trying to do right by the customer. They just have an outdated mindset,” Baldwin says.
The industry may be old and stodgy, but Quilt is hoping that with its new enrollment process, it can get you covered (I see what they did there).