Risk Management (General)

Using Behavioral Economics in Underwriting

In underwriting, the ability to obtain accurate health information from an applicant is paramount. The practice of asking people to report their health has been perfected over decades, yet under-reporting remains an issue in markets around the world. This leads us to consider: is it something about the way we ask the question?

Preferred Risk Criteria and Values: Can We Move from Good to Better?

With decades of underwriting experience to research, the author reviews some of the criteria commonly used to try to answer the question: “We have done well in the past, but could the industry use its criteria to make risk selection more effective?”

A New Response (Best's Review)

Hybrid life insurance/long-term care product sales are rising, but the industry must pay attention to pricing and risk mitigation techniques.

Predictive Analytics Articles (SOA)

The Society of Actuaries is providing a selection of articles on the use of predictive modeling. Articles included in the PDF package:

  • Risk Segmentation: Application of Predictive Modeling in Life Underwriting
  • Predictive Modeling Techniques Applied to Quantifying Mortality Risk
  • Utilizing Frequent Itemsets to Model Highly Sparse Underwriting Data
  • Producing Actionable Insights from Predictive Models Built Upon Condensed Medical Records
  • Predicting Emergency Room Frequent Flyers

Reading Risk Right (Best's Review)

Hank’s new Best’s Review essay exposes the risks of overemphasis on productivity, at the expense of quality, in unde

A Second (Risk) Opinion After a Coronary Event

Can a man in his 50s with a history of heart disease ever be considered better than a sub-standard risk for life insurance? The answer is, sometimes, YES.

Rock Star Mortality: High Risk for Hard Living

Do rock stars really die earlier compared to the average population? If so, why is this of interest for the insurance industry?

Decision Biases: How To Break the Snap and Stick Routine and Thrive in a World of Grey

In my last blog discussing Gen Re’s work on decision biases, I shared how something called the fundamental attribution error inclines us to overweight the contribution that individual attitude and skill makes to our performance and underweight the role of the context in which we work.

Misclassification of Risk: Dealing With a Fact of Life (Insurance)

Risk misclassification sometimes occurs no matter how much underwriting a life insurance policy receives. What happens if the risk we are taking is misclassified?

Life Insurance Acceleration Riders

In recent years, life insurance companies have started offering acceleration of a portion of the face amount of the life insurance policy to those who are chronically or critically ill. This article discusses the more common form of the chronic illness riders found in the U.S. marketplace today, as well as considerations to control the risks under that rider.

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