Munich Re, US (Life) (Munich Re) assessed LexisNexis® Risk Classifier, which is a predictive modeling tool that was developed by and is proprietary to LexisNexis. LexisNexis allowed Munich Re access to the Risk Classifier in order to perform an objective review of its ability to accurately assess mortality risk using publicly available and easily obtainable non-biometric criteria.
The phenomenon we call antiselection constitutes a clear and present danger to the life insurance industry. A simple definition of this scourge is “not disclosing information known by the insurance applicant in order to get life insurance per se or acquire coverage at a lower premium rate than if that information had been revealed on the application.”
Big Data is scary. That's the one thing that four people from very different professions agreed on during a panel at a Kenyon College political-science conference about technology's impact on privacy in the 21st century.
The purchase of any type of insurance is based on the premise that the applicant/proposed insured will disclose any and all pertinent information related to insurability and that the insurer will act upon that information in good faith. If information is withheld, the balance of the transaction is altered.
This is part two of research by guest author Amy Radin on the Life Insurance business. In Part 1 last week, Amy outlined the fundamental business issues behind the decline in Life Insurance and the white space opportunities this opens up for entrepreneurs. In today’s research note, Amy looks at 8 startups aiming at the white spaces.
The miracles of transplant surgery have given so many whose body organs have failed a new lease on life. Heart, liver and kidney transplants are no longer experimental procedures done with fingers crossed and only temporary results expected. Receiving these organs is a lifesaver for those recipients involved. But what is the insurance fate of organ donors?
Life insurers in North America are preparing for a dramatic shift in their use of big data and predictive analytics, according to a Willis Towers Watson survey. While many are just getting started, life insurers expect their use of big data and predictive analytics for decision making to soar dramatically within the next two years.
In the next decade, genetic tests may become significant and cheap enough that advisers begin suggesting insurance customers test prior to applying for insurance cover. Will consumer behavior change as genetic testing becomes more accessible?