Life insurance beneficiary clause importance

At the start of a life insurance contract, the insurer asks the policyholder to fill out a beneficiary clause, which specifies who will receive the money if the insured person dies. This clause may need to be updated if there are changes in the policyholder’s personal circumstances, such as marriage, divorce, or the birth of a child.

Updating beneficiary clauses

Failing to update the beneficiary clause can lead to unintended outcomes, such as the money going to the wrong person. To help with this, policyholders are encouraged to review their annual statements, which provide an ideal opportunity to check if the beneficiaries listed are still the ones originally intended.

AI tool for reviewing clauses

Crédit Agricole has developed an in-house artificial intelligence tool called "Clauses bénéficiaires" to help advisors more efficiently identify beneficiary clauses that need reviewing or updating. This tool aims to make the process of ensuring accurate beneficiary designations more systematic and thorough.

AI as an advisory aid

Séverine Tourtois, Director of Individual Retirement Savings at Crédit Agricole Assurances, explained that the AI is meant to support the duty of advice by helping advisors identify areas that need attention. It was initially tested in a few agencies before being rolled out more widely, and it helps identify elements that may need adjustment or verification.

AI’s role and limitations

The AI does not make changes to the clauses itself but suggests areas for review and offers more precise wording. Advisors are then responsible for contacting the policyholder to discuss any necessary changes. So far, the AI has analyzed 4 million older contracts, with the goal of eventually reviewing the entire portfolio continuously over time.