Underwriting

Is the promise of wearable technology too good to be true? Inclusion of wearables in life insurance products to date has not matched the interest. But advances hold great promise. RGA’s Julianne Callaway explores the power and perils of these promising devices in Digital Insurance. 

Wearable devices (those worn by consumers as accessories or implants), have been of interest to more than a handful of industries in recent years. The opportunities and possible uses so far seem positive and limitless.

Wearable technology has the potential to transform the life insurance industry by empowering insurers and insureds alike with valuable health knowledge. 

The July 2018 issue includes:

• ​FDA Bans Trans Fats
• Paraganglioma
• Erythromelalgia
• ECG Puzzler

A difficult and often fatal disease in older adults, idiopathic pulmonary fibrosis (IPF) is one of a spectrum of diseases called interstitial lung disease.  The title accurately describes the process: Idiopathic (cause is unknown), pulmonary (affecting the lungs) and fibrosis (the normally expansive tissue in the lungs becomes hardened and fibrous).  The disease can be localized or generalized, with generalized findings having a particularly poor prognosis.  Usually not found until its later stages, CT scanning (particularly for lung cancer screening) has shown IPF to be more prevalent than previously thought.

There have been a number of changes in the insurance landscape in the recent past which present challenges for the consumer, advisor and underwriter. Last year, some carriers changed their position on marijuana usage by offering their clients non-smoker rates. There have also been recent legislative changes regarding genetic testing that impact life insurers.

Slides from this presentation, given at the 2018 ACSW Spring Meeting, have been posted at the Actuaries’ Club of the Southwest website.

Progress in genomics is creating opportunities and threats for medical underwriting in both health and life insurance.

“Deaths of Despair,” an article recently appearing in the Wall Street Journal (WSJ), should have red flags flying throughout the underwriting community.

Life insurance is undergoing a renaissance of sorts. The industry is slowly transforming from one entrenched in the old-age archaism of paper and manual processes to one embracing digital technology and artificial intelligence, which benefits consumers via a more enjoyable sales experience and better product pricing.