The LIDMA 2025 conference, themed “Igniting the Future: AI, Data, and the Human  Touch,” brought together leaders from agencies, carriers, and reinsurers to  explore the evolving landscape of life insurance. This year's discussions centered  on the use of technology, particularly artificial intelligence (AI), and highlighted  several important themes:  

1. The Shifting Dynamic of Insurance Distribution  

Key leaders from all aspects of distribution (agencies, carriers and reinsurers) debated the “state of the industry.” The conversation underscored how the trend toward agency consolidation into larger groups is reshaping the independent market, with some carriers rediscovering the value of in-house and semi-captive agents. Interestingly, PSG recently published a blog that made a related point on the shifting dynamics of distribution – with the adoption of digital tools and a trend towards agency consolidation, BGAs are now selling life insurance with a similar approach to Direct-to-Consumer marketing organizations, blurring the difference between the two.

Additionally, in today’s post-COVID world, reaching potential insureds has become more complex. In the age of digital shopping and same day delivery, consumers expect, even demand, a fast and easy application and underwriting process. Use of technology within distribution is paramount to stay competitive by shortening turnaround times, reducing administrative burdens and improving quote accuracy.

Another major challenge facing the industry is the transition from retiring agents to newer generations, who bring fresh perspectives and expectations, but less experience. However, these new agents are typically much more technologically savvy, and use of digital tools can help close the experience gap— by providing guidance in asking appropriate questions of applicants to ensure preliminary quotes are as accurate as possible while also delivering a faster, more convenient experience for consumers.

2. AI’s Impact on Agents and Processes

AI and data-driven tools that enable a more efficient application and underwriting process are transforming the role of agents. Technologies now enable the collection of personal information using external data sources, underwriting logic, and AI to generate an instant decision dynamically for a growing percentage of cases (40–60%), with the remainder completed in days rather than weeks. However, agents must adapt to new outreach methods and technologies, highlighting the need for ongoing education and support to remain effective in a rapidly changing environment.

AI tools are also helping with training and skill development. For example, a call center leveraged AI to review and grade phone interviews – to give useful feedback so that agents can improve their performance. Additionally, technology can be used as an active and dynamic “coach” during an interview to help guide the process.

3. Balancing Human Input with AI

While technology continues to drive greater efficiencies in distribution, it does not address all challenges. Accuracy remains a concern and genuine human interaction continues to play an important role in client service. The prevailing view is that while AI is a powerful tool for research and process improvement, technology should enhance—not replace—the human touch.

4. Navigating The Evolving Use of Data

A session led by MIB’s Carolyn McAvinn and Jessica Caracofe highlighted how carriers are increasingly relying on new data sources, such as EHRs and the MIB In Force Data Vault, to verify application information, uncover misrepresentations, and flag adverse behaviors. As a result, sales partners need to understand these data sources, educate clients, and be ready to address underwriting questions. If data leads to an unfavorable decision, clear and empathetic communication becomes essential, helping clients understand denials or premium changes.

Meanwhile, as automation and straight-through processing streamline approvals, safeguards like MIB Codes that indicate the presence of medical impairments or policy activity are in place to protect both the sales partner and carrier from non-disclosure and fraud. Additionally, carriers are increasingly using post-issue underwriting audits to catch misrepresentations during the contestability period. Consequently, sales partners should be aware and prepare clients for possible post-issue follow-up reviews.

PSG and LIDMA

We were privileged to hold our own breakout session at the conference, demonstrating how carriers and distributors can partner with PSG to improve efficiency and control costs while maintaining quality outcomes through the use of:

• PSG eValuate – Our powerful field underwriting tool that uses impairment  based reflexive questioning to guide the collection of relevant data and  accurately estimates risk class and pricing based on carrier-specific  underwriting logic.

• PSG eXpedite – Our e-signature and workflow support tool designed  specifically to meet the needs of the life insurance industry, leveraging  proven PSG e-sig technology.  

As President of PSG and Treasurer on the 2025 LIDMA Executive Committee, I am  proud that PSG is a long-standing sponsor of LIDMA. The conference highlighted  the essential role of innovation and collaboration in advancing life insurance  distribution, and PSG remains committed to supporting these efforts.