Behavioral Economics may help find a balance between simplification of the underwriting process and the mitigation of risk.
Underwriting in the US life insurance industry has had more change in the last five years than it has in the prior 30…and many underwriters are struggling to keep up with the pace. Terms like accelerated underwriting, automated underwriting, simplified issue, predictive models and big data are bounced around at industry meetings like ping pong balls. If you are confused by all the new terminology, you are not alone.
Previously reserved for the hard to insure, simplified issue products have evolved into fully underwritten simplified products. Backed by artificial intelligence, these products have become an alternative to traditional simplified issue products.
As accelerated underwriting programs grow more prevalent in the industry, some carriers may feel they are falling behind. But this may be more perception than reality. The following article from RGA addresses common misconceptions around accelerated underwriting and dispels many of the myths about implementing an accelerated underwriting program
In this episode of LIMRA Unplugged, LIMRA Research Director Alison Salka talks with Jim Scanlon, life insurance research director for LIMRA, about the impact of simplified underwriting.
Slides from the presentation by Robert Stout, Laboratory Director at Clinical Reference Laboratory delivered at the 2017 Spring Meeting of the Actuaries’ Club of the Southwest.
In an effort to underwrite more quickly and accurately, carriers are exploring simplified issue products, according to a new LIMRA study.
A novel hybrid approach to simplified life underwriting has exploded onto the industry landscape. Each passing month finds several more carriers rolling out what has come to be dubbed “accelerated underwriting” (AU).
Over the years, insurance carriers have sought to underwrite and issue more policies in less time and at lower costs. Many insurance advisors might also say that today’s full underwriting process is not only long, but can be daunting for the advisor as well as the applicant. As a result, many insurance carriers have been developing products with simplified underwriting. This article discusses the main approaches to simplified underwriting, their advantages, and associated risks, and how insurers can mitigate these risks.