Life

Customers can withhold their fitness data, but that will result in higher premiums, which may put life insurance out of reach for low-income earners. This in turn could have an impact on whether would-be homeowners can take out mortgages, some of which can require a life insurance policy on the principle borrower.

As data mushrooms, models become more complex, roles become more specialized, and terminology becomes more confusing (and over-hyped) – we need to be honest with ourselves, honest with stakeholders and not allow hubris in our models to displace common sense.

To start, what is a “protective value study” anyway? In its simplest form it is a determination of whether a test or tool provides (mortality) benefit in the underwriting process. The output of the study can range from a qualitative “yes” to a detailed quantitative breakdown of mortality impact by age, gender or other relevant variables.

RGA shares basic steps insurers can take to prevent overfitting for more accurate predictive models.

Are you ready to purchase a policy with a fingerprint? Apply through a smart television? Walk through a check-out scanner and walk out qualified for coverage?

While wearables and apps are most closely associated with promoting physical fitness, technology is increasingly being put to use in lifestyle monitoring of the elderly and others in need of care.

The practice of life underwriting is undergoing a lot of change as insurers look to speed up and enhance the customer experience. Big data, artificial intelligence, pharmacy records, accelerated underwriting and more are playing a part.

The Society of Actuaries sponsored a Delphi study to gather expert viewpoints regarding emerging underwriting methodologies and their impact on future mortality experience.

One of the toughest situations for an underwriter is the case that seems to have literally fallen off the cliff.  A condition that is significant, that is being followed, and that does have mortality consequences suddenly has no notes of any recency for six months or more.  Follow-up that appeared to be favorable virtually disappears, and the underwriter is left with guessing that things have continued to go reasonably well.  Or not...

Munich Re assessed the Milliman Rx Risk Score, a predictive modeling tool developed and owned by Milliman that assesses mortality risk using an individual’s prescription drug information. Insurers considering prescription- drug-based scores should begin with a retrospective validation study on their own experience data.