For decades the life insurance industry has been using similar financial underwriting guidelines and making few material changes to underwriting approaches. This article is intended to plant some seeds of thought, promote dialogue, provide ideas to consider for changes in financial underwriting guidelines, and ultimately encourage you to answer for yourself whether or not your current guidelines make sense.
Traditionally, insurance companies have asked all applicants who require tests of their lipid (or blood sugar) levels to fast overnight. Fasting means taking no food or drink for up to 12 hours prior to a blood sample being taken. This restriction is certainly inconvenient and may even dissuade people from continuing the underwriting process.
It used to be impossible to price insurance based on your particular lifestyle, health or habits — but technology has given us the solution, at least for car insurance. How long before health and life insurance follow? The day is coming when the guesswork involved in evaluating factors regarding a consumer’s specific health risk is virtually eliminated.
David Wang is a life actuary with Milliman. He works extensively in the variable annuity area and has explored the application of predictive
modeling to life and annuity insurance. Peggy Brinkmann is a Property & Casualty (“P&C”) actuary with Milliman and has 20 years of experience in predictive modeling. David talked to Peggy recently about how predictive modeling is used in P&C insurance pricing to see what life actuaries can learn from our peers.
Although Asian countries have some of the lowest prevalence of overweight and obesity worldwide, they are experiencing alarming rates of increase in recent years. The boom in economic development and cultural factors are often cited as drivers. Knowledge about trends in overweight and obesity is important for underwriting this increasingly common risk group.
At the 2014 NAILBA 33 conference in Hollywood, Florida, Brad Gabel (AIG Global Consumer Insurance), Bill Moore (Swiss Re), and Kathy Deren (Nationwide) joined forces to create the Risk Appraisal Forum, where they discussed the forecast of the underwriting industry as we enter year 2015.
Continuing the company's focus on making the life insurance application process less arduous, MetLife launched a new proprietary individual life insurance field underwriting tool, MetLife QuickPredict, which its producers can access by desktop, laptop, tablet, or smartphone.