Over the last 5 years, the life insurance industry has experienced an exponential growth in accelerated underwriting (AUW) programs. As the life insurance underwriting process continues to provide less invasive accelerated pathways, insurers increasingly rely on self-disclosed information for key risk factors instead of observed measures under traditional underwriting, such as smoking status and build.
With the COVID-19 pandemic, the need for accelerated underwriting (AUW) in a fluidless environment has become urgent. The webinar on “Risk Selection in a Fluidless Environment” explores how we can understand if and when fluid testing is useful or needed in the underwriting process.
How insurers use big data and artificial intelligence to support their claims and underwriting strategies is likely to accelerate as a result of the Covid-19 pandemic.
Prior to COVID-19, 46% of American adults did not own life insurance and of those who did, many were underinsured, according to research by the Life Insurance and Marketing Research Association.
The industry has been talking about the “future of UW” for decades, but now COVID-19 has “accelerated the inevitable” and the future is now.
As accelerated underwriting (AU) and artificial intelligence (AI) begin to turn life underwriting upside down, several NAIC working groups are seeking to bring order to the disruption.
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.
Among the areas addressed include the structure of accelerated underwriting programs, how programs are monitored, how accelerated underwritten business is performing relative to expectations and how companies are considering accelerated underwriting cohorts in the context of VM-20 assumption setting.
Top life underwriting issues include regulatory concerns, accelerated underwriting, and the opioid epidemic.
Lest anyone think the previous exchange is fanciful or seems a bit paranoid, it is already happening. It is known as using accelerated underwriting using external data and over two dozen U.S. insurers are currently using it.
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