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).
After spending 17 years working at life insurance carriers assessing large face amounts, the opportunity to move to the field presented itself and I jumped at the chance. The one observation that has been consistent can be narrowed down to one phrase.
It's long been understood that life insurers have lagged other sectors in digitizing their business processes and directing money to new technologies to try to gain a competitive edge. The only question is, how much have they underinvested?
The practice of underwriting insurance is a fine mixture of art and science. To be successful, it takes a lot of common sense, even more experience and a well-rounded team of experts. Time and practice are the true keys to the profitable underwriting of life, health and disability insurances. As you can probably imagine, factors such as age, gender, occupation risk, financial viability and adverse health history play significant roles in the underwriting of most insurance. But other, less obvious factors come into play when working in the specialty-risk side of the life and health marketplace.
N Terminal-pro Brain Natriuretic Peptide (NT-pro BNP) is produced by cardiac muscle cells (myocytes) in response to cardiac wall stress and myocardial ischemia. NT-pro BNP has been shown to predict all-cause mortality in insurance applicants without a history of heart disease, as well as in the general population. It has been found to improve future cardiovascular risk estimation when considered along with classic cardiovascular risk assessors. It has also been identified as an indicator of future mortality risk in those having stable coronary atherosclerotic heart disease (CAD)
Opportunities for point of sale underwriting are increasing as new data sources become available and processing techniques are developed. Risk scores are being analyzed by SCOR’s R&D Center for impacts to underwriting and mortality assessment.
Life insurance for juveniles has been a fairly simple proposition. Most insurers offer a Juvenile Coverage rider to a parent’s policy for a nominal face amount and charge. Others offer stand-alone low-face whole life policies. Coverage traditionally has been for final expense (the rider) or as a primer for the child’s savings (whole life).