This year continues to present challenges that force us all to think differently. The pandemic response promoted independent action, self-help and a heightened sense of social responsibility. This has accelerated the harnessing of technology as solutions for how we work, communicate, access healthcare, buy goods and receive services.
It is a long way from Bob Dylan’s realistic prophecy of what was happening and what was to come back in 1964 when he wrote the song. No one can disagree with the state of the world protests and the COVID pandemic that the times certainly are a-changin’. This is also the phenomenon happening in underwriting and risk selection, and we have to be prepared to meet the changes to insure a positive outcome no matter our underlying feeling about what those changes are.
There are a lot of changes happening in the life insurance industry because of COVID-19—market environment, types of insurance products, processes, and technology.
Smartphone addiction: Is this a legitimate disorder or just a trendy catch phrase? Some are calling it the new addiction of the 21st Century.
The author makes the case that the new underwriting strategies will continue after the COVID-19 pandemic is over.
Post-human underwriting? In On the Risk, RGA's Dr. Dihui Lai discusses the current state of artificial intelligence and the potential for machine learning, optical character recognition and deep neural networks to augment, but not replace, traditional life underwriting tasks.
Mobile apps are now widely accepted as a self-management tool for managing epilepsy – with smartphone applications used in tandem with traditional treatment and anti-seizure medications. This neurological disorder is a common condition seen by insurers, and many applicants with controlled seizure history can be considered favorably for life insurance.
The center questions the use of factors such as employment class and education level in marketing, underwriting and pricing.
Predictive models are an incredibly powerful tool with the potential to drive the life insurance industry forward in ways that are good for both consumers (improving their purchasing experience by removing intrusive requirements and long delays) and carriers (increasing taken rates and persistency, and increasing the accuracy of mortality assessments).
Life insurers need actionable responses to current underwriting challenges – including the need for fluidless Accelerated Underwriting alternatives, while striving to maintain the same level of mortality.