Underwriting

Insurers seem to be chasing appearances, investing eye-watering sums of money into projects to improve the application process, but these sleek, web-based systems can mask a distressing reality: Underwriting technology underpinning the decision process is not attracting the same attention. RGA's Bruce Bosco calls for a greater emphasis on automated underwriting to improve the customer experience and help bridge the protection gap. 

The wider implications of recent advances in genetics and genomics, including polygenic risk scores, need to be considered in the context of the protection industry. RGA's Heather Lund and Richard Russell explore the topic in depth in the Journal of the Association of Insurance Medicine of Japan.

Takotsubo Syndrome (TTS) was originally described by Japanese authors in the 1990s. The name was derived from the Japanese word for octopus pot, due to the shape of the left ventricle (LV) at the end of systole, which resembles an octopus trap used by Japanese fishermen. It has been described under a remarkable number of different names in the literature including Broken Heart Syndrome, Stress Induced Cardiomyopathy and Apical Ballooning Syndrome.

The frailty index (FI) holds a robust and consistent correlation with mortality and morbidity and is a stronger predictor of mortality than chronological age. Frailty status may be a promising risk factor to add into the underwriting mix, particularly for disability products. 

​For decades medical records, a.k.a. APSs, have been known as the gold standard for life insurance underwriting data, though the  acquisition of medical records remains largely an inefficient paper process. Since the introduction of electronic health records (EHR) in the health field, life insurance labeled them the Holy Grail and vendors of this data as potential disruptors.

Life insurers have long recognized the value of oral fluids for risk assessment through screening for HIV-1 and tobacco or drug use, but oral health itself is not routinely evaluated as part of the underwriting process.

Underwriting in the US life insurance industry has had more change in the last five years than it has in the prior 30…and many underwriters are struggling to keep up with the pace. Terms like accelerated underwriting, automated underwriting, simplified issue, predictive models and big data are bounced around at industry meetings like ping pong balls. If you are confused by all the new terminology, you are not alone.

Wearable technology could dramatically change the way life carriers do business and interact with their customers. See what some insurers are already doing with wearables.

Build is one of the essential points of information in underwriting that go into a rating. Generally, height and weight are calculated into a measure called BMI, which is body mass index. Most companies make build tables available to their agents and brokers to allow a general idea of whether or not there will be debits on a case. However, more things go into an assessment than just absolute measures, so companies may vary on how they perceive build information.