Underwriting

This article discusses what a genetic test can reveal about us, the variety of genetic tests available and some of the pitfalls we can experience as underwriters, or indeed consumers, of these genetic tests.

Most advisors have heard of Obstructive Sleep Apnea and may even have a client, friend or relative who has it.  But many advisors don’t truly understand what Obstructive Sleep Apnea is, the pathophysiology of the condition, or how insurance companies underwrite individuals who have it.

If the insurance industry is informed about medical advancements, a huge advantage arises for future underwriting with regards to calculating ratings for specific diseases and also creating digital application forms with simplified underwriting.

A proper handling and understanding of what the client and advisor need to present to underwriting is the difference between success and failure.

WAHLU has posted slides from the following recent presentations: 

• Mary Hanson's "Nonmedical Hodgepodge"
• Terry Feeney's "Traumatic Brain Injuries"

It sounds a bit flippant, yet it is a request that medical directors and underwriters see quite often.  An informal application or quick quote comes in with a request about “history of brain tumor.”  Or maybe a question of pancreatic cancer.  The underwriter is expected to make an educated guess based on these minimal findings.  All tumors truly aren’t created equal, and people have individualized responses to different abnormalities.  The more information supplied the better chance there is for not only a placeable but a sustainable quote.

Many of today’s older-age evaluations include additional screenings to measure cognitive and frailty risks: clock drawing, delayed word recall and walking speed. These assessments may add time to the application process and increased cost for the insurer. However, recent studies indicate they could be replaced with a simple blood test: Cystatin C.

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.

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.