When life insurers set their underwriting requirement practices, the primary focus has always been on protective value (cost vs. benefit). In many smaller companies lacking the resources to conduct internal studies, the usual approach is to consider the practices of larger carriers and most notably those known to routinely do such studies.
What are the two biggest underwriting-related concerns of senior management in direct-writing life insurers?
#1 – Reducing new business acquisition costs
#2 – Reducing application-to-issue cycle time
Both of these issues are conspicuous high priority agenda items in most companies.
The matter of business acquisition costs is, if anything, accentuated by the current economic environment.