Underwriting

Customers today are more digitally‐enabled, more health conscious and more demanding of customized products and services that offer greater freedom and flexibility. The insurance industry however often fails to keep pace, and consumers can face multiple pain points in their insurance journey.

A 64 year old female was submitted for life insurance with what the agent felt were “insurable problems.”  She was diagnosed with lupus 20 years ago but the disease had remained inactive, on no specific medications, normal kidney testing, and only with recommendations to stay out of the sun for photosensitivity reasons. 

I recently attended the AHOU 2018 17th Annual Conference and had the opportunity to talk to tons of underwriters who all had strikingly-common challenges. In many of my conversations, I asked how long their average APS is and how long it takes them to underwrite a policy, and I was often met with responses like oh jeez – too long? Or Gosh, hundreds of pages and anywhere from 45 to 90 minutes.

Four-part webcast series presents new research and explores potential implications for the insurance industry.

The RNS is not something from science fiction. It is one of a growing number of technologies that combine robotics, artificial intelligence, and connected devices to bring a new level of technological sophistication to the physical world. Such tools will have huge implications for the life insurance industry.

Either through online application processes and simplified underwriting, or by more advanced data analysis – using, for example, facial recognition – the underwriting process is going to change. What the exact developments will be and how they finally affect our industry is not yet 100% clear.

Smoking cessation has been a large contributor to improving mortality over the past few decades and tobacco use, amongst adults and teens, is at an all-time low. However, the trend of vaping and e-cigarettes has exploded. What are the implications for insurers?

This update is based largely upon findings from our 2018 New Business Critical Issues Survey. It was conducted over a span of six months stating in October 2017. Chief underwriters from 93 insurers offering individually underwritten life insurance participated in this survey.

Liver enzyme testing (LFTs) are part of virtually every blood profile obtained on a potential insured.  They are also one of the leading causes of a completely unexpected rating or decline on a case.  Most clients do not provide a specific history for an elevation, and no broker or agent expects such an outcome with what seemed to be a clean history.  Knowing how to approach this situation can be key to a favorable underwriting outcome.