An insidious crisis is quietly jeopardizing the future of life and health insurance.
We are permitting ourselves to "dumb down" as regards prowess and savvy in the art and science of risk selection.
On visible aspect of this has been intensive cost-cutting efforts of recent vintage. CFOs have been quick to cut "non-essential" travel, as well as spending for educational purposes. While everyone appreciates the need for prudent spending, these well-intentioned individuals are simply "picking off the low-hanging fruit." By doing so, they are unwittingly closing off essential avenues to maintaining technical proficiency. Sacrificing access to vital knowledge in these times of great and rapid change is the quintessence of penny-wise/pound-foolish thinking.
A 2004 LIMRA Research Report (Insights Into Strengthening Producer Relationships) surveyed of a cross-section of successful agents and brokers and determined that "service and support" was the second biggest reason why they changed carriers.
Probing this further, LIMRA scientist Denise Marvel discovered that "issuing policies promptly" was the number two concern producers with "service and support."
Issuing policies promptly speaks to slashing cycle time, the interval from when an application is submitted to when a policy is issued.
Aside from imaging and other technology enhancements, there is only one way this goal will be achieved. Through the magic of TELEUNDERWRITING.
Critical illness insurance — sometimes referred to as dread disease insurance — is exactly what its name implies: a form of coverage which pays a living benefit when the policyholder contracts one of the impairments named in the contract. These conditions typically include heart attack, stroke, invasive (thus, potentially life-threatening) cancer, and so on.
CAM is the new acronym for complementary and alternative medicine. Which, in turn, speaks to a broad array of therapeutic interventions—some ancient, others ultra-modern—standing at the gates of conventional medicine and finally being heard.
In North America, life and health risk management is undergoing a dramatic transformation.
The new millennium brought with it great opportunities and unique challenges for our industry. This article will focus on those aspects of opportunity and challenge that have come together to catalyze what can only be described as the ongoing “metamorphosis” of how North American life and health insurers appraise insurability and process new business.