Facultative cases exist on a spectrum of difficulty, and increasingly, insurers recognize that many of these substandard submissions benefit from a blend of human judgment and automated processes – a hybrid approach. RGA's Scott Sibley explains.
Driven by the need to slow or stop the spread of COVID-19, accelerated underwriting may save lives while increasing sales of life insurance.
When you have deployed an underwriting engine, that is not the end of the journey. Quite the opposite: it is just the beginning.
5 Questions to Ask When Evaluating an Automated Life Insurance Underwriting System for Your Business
Several systems are available in the market. To help you research beyond a provider’s high-level content and demos to evaluate the right system for your business, we recommend asking them the following five questions.
Underwriting engines have been around for over 20 years. Initially they were used in head offices, processing application form information keyed in by clerical staff, and avoiding the need for (expensive) underwriters spending time on the more straightforward cases.
The industry has yet to tap the true potential of accelerated underwriting because the automation component has been missing.
The race to develop accelerated products has driven life insurers to cautiously embrace the next generation of data.
Kyobo Life Insurance announced on October 30 that its AI-based underwriting system, known as Best Analysis and Rapid Outcome (BARO), is now fully operational.
Life underwriting professionals are experiencing a paradigm shift in modus operandi, driven by the introduction of automation initiatives. Multiple consulting studies and analyses indicate that automation in underwriting is a valid business need. The coevolution of humans and technology must be supported by business strategies that focus on identifying necessary underwriting skill sets. The convergence of the art of underwriting and the science of technology presents many challenges. Insurers and reinsurers must plan accordingly.