When it comes to selling life insurance, the faster and easier the application process, the better – right? Not necessarily! It’s generally thought that a speedy and seamless application experience will increase conversion rates in this traditionally challenging market, but research shows that there may be a hidden cost to fast, frictionless digital insurance applications.

It comes down to the fact that a quick application process increases the likelihood of intuitive responses that are provided without real thought or care, thereby leading to misdisclosures. People may have a tendency to provide “good enough” answers in order to minimize their effort, such as approximating their height, weight, or alcohol intake rather than putting in the effort to get an exact number.

Fast thinking may also lead people to rely more on their intuition, or to inadvertently attempt to display their social value. We all have a natural human impulse to present ourselves in the best light, and time pressure can lead to misdiclosure on details that are weighted with social stigma.

In a study using real application data, RGA compared self-reported BMIs with those obtained in paramedical exams and found that a full two-thirds of the applicants underestimated their BMIs. The vast majority of underestimations were for less than 10% – a possibly justifiable “white lie” for an applicant, but a material amount to an insurer across a whole portfolio.

A case for positive friction Considering these factors, there could be an argument for building more time for consideration into application processes. Designing effective applications means making it psychologically easy for applicants to answer questions honestly. Slower application processes may offer a higher chance of customers fully considering their purchase, and that greater investment in effort may lead to an increased perception of value and greater trust. The path of least resistance may not lead to the best outcome.