.png)
In conversations with greenfield carriers and incumbents -whether building from scratch or navigating transformation —the questions usually start with the basics:
What’s your policy admin system? What else comes in the tech stack?
Fair questions—but they point to a deeper issue. Too many carriers are still solving for yesterday’s problems, not tomorrow’s opportunities.
That pushed me to step back and ask:
If we were building a 10x Life & Annuity carrier from scratch—designed for speed, flexibility, and capital efficiency—what would it look like?
I believe it starts with five defining traits.
1. Zero-Ops, Composable, Event-Driven Core
Modern carriers must move beyond monolithic systems or point solutions and toward cloud-native, modular architectures. A composable core—built on APIs and event-driven infrastructure (where systems react in real time to triggers like policy submissions or market changes...)—enables rapid product launches, real-time responsiveness, and seamless scalability. These systems also form the foundation for embedding AI across the enterprise—connecting real-time data flows with intelligent decision engines that power everything from illustrations to claims routing. According to McKinsey, lean operations models like these can reduce cost structures by up to 40 percent.
For greenfield carriers, this architecture becomes a competitive advantage. It eliminates the need for large internal operations teams, accelerates go-to-market timelines, and simplifies integration with distribution partners, reinsurers, and data providers. By decoupling core functions, carriers can scale without being constrained by legacy systems—or legacy thinking.
2. Reinsurance-Led Balance Sheet Strategy
Strategic reinsurance partnerships are becoming foundational to modern carrier design. By transferring underwriting risk, carriers simplify capital requirements and shift focus to growth, customer experience, and distribution. LIMRA reports that over 60 percent of new annuity premiums in key segments are now reinsured—a clear signal of market evolution.
For greenfield carriers, starting fully reinsured is often the smartest path—a way to validate distribution, establish credibility, and learn the business without taking on significant risk. In some cases reinsurance might not be the end game. Carriers typically shift the mix—retaining more risk, optimizing spread, and building balance sheet strength as a foundation for long-term value creation.
3. Real-Time Data, AI, and ML Fabric
Advanced data and intelligence layers are no longer optional. Real-time integration of policy, behavioral, and market data—enhanced by AI and machine learning—enables continuous optimization of underwriting, pricing, hedging, and retention strategies. For example, real-time behavioral signals can drive dynamic pricing adjustments or trigger outreach when lapse risk increases—turning data into immediate action.
It’s how carriers move from reactive to predictive, and from static to adaptive.
4. Tech-Enabled Compliance, Built for Confidence
Compliance isn’t just about meeting standards—it’s about enabling scale and speed. By adopting specialized platforms and frameworks—SOC 2, LLM governance, PCI, and others—carriers can reduce internal complexity, enhance auditability, and stay ahead of evolving regulatory demands.
Forward-thinking carriers are adopting dedicated compliance infrastructure: purpose-built tools that embed governance, security, and oversight directly into operations. This approach scales with growth, lightens the burden on internal teams, and frees up capacity for innovation.
5. Frictionless, AI-Powered Distribution and Onboarding
Acquisition costs and onboarding friction remain major hurdles across Life and Annuities. But distribution itself is also evolving—from traditional agent models to embedded partnerships, direct-to-consumer channels, and digital marketplaces.
The 10× carrier will meet customers and advisors where they are. That means enabling seamless integrations with IMOs, banks, RIAs, and digital distributors—while using AI to qualify leads, personalize journeys, and reduce time-to-issue. McKinsey research underscores the potential of AI to revolutionize distribution and underwriting in life insurance, enabling carriers to identify market opportunities, optimize coverage strategies, and enhance advisor effectiveness through advanced analytics and digital tools.
Done right, distribution isn’t just a channel. It becomes a competitive advantage - one that drives growth, enhances trust and builds loyalty
How These Traits Unlock Momentum
- Issuance at Speed: Composable cores and reinsured portfolios enable rapid deployment and dynamic pricing.
- Differentiated Investment Management: Real-time data and AI sharpen hedging, ALM, and capital allocation.
- Capital Optimization: Lean ops and scalable compliance infrastructure free up capital for growth and innovation.
- Improved Placement Performance: Smarter distribution and real-time AI reduce friction, increase suitability match, and drive higher conversion from application to issued policy.
