As insurers develop accelerated underwriting programs and take steps toward more efficient processes, lower costs, and a streamlined customer experience, innovations across the insurance industry are helping to improve risk insights. It is never too early to start educating yourself and engaging with a partner. Get started with 69É«ÇéƬ.
It is a transformative time for the life insurance industry as accelerated underwriting promises to reshape the way companies do business.
The goal: to improve underwriting speed and efficiency while also preserving the reliability of the risk assessment process. Amid this dynamic environment, it’s easy for carriers to feel overwhelmed and at risk of being left behind. Fortunately, there is ample opportunity to catch up – and getting started is not as difficult as they might think.
Experts from 69É«ÇéƬ recently weighed in on the top questions and concerns they field from carriers regarding accelerated underwriting, and they bust some common myths on the topic.
Accelerated underwriting programs can certainly enable underwriters to more efficiently determine applicant risk class for a subset of their business; however, setting appropriate expectations is key. Your measure of success ultimately depends on how you define success with respect to both acceleration rates and mortality slippage. *The development of an accelerated underwriting program is essentially a balancing act between how many applicants a carrier wants to accelerate and a tolerable level of mortality slippage.
Additionally, not all acceleration rates are the same. It is important to realize when comparing acceleration rates among companies that pre-filtering can lead to inaccurate comparisons and artificially high acceleration rates.
When developing an accelerated underwriting program, it is important to establish realistic goals, set appropriate expectations and maintain enough flexibility to allow for refinements over time. Reinsurers can help carriers understand the trade-offs between acceleration rate and mortality slippage to enable the development of a sustainable program that meets their needs.
- Tricia Peters, Vice President and Managing Actuary, 69É«ÇéƬ
Companies are working to implement accelerated underwriting solutions, but there are definitely speed bumps to keep an eye out for. In the next article in this series on acceleration, we will present a roadmap of steps you can take to push acceleration forward in your organization.
For a deeper look at this topic, please see: Trends Point to an Accelerated Future for Risk Selection
Reprinted with permission of ON THE RISK, Journal of the Academy of Life Underwriting ()
As insurers develop accelerated underwriting programs and take steps toward more efficient processes, lower costs, and a streamlined customer experience, innovations across the insurance industry are helping to improve risk insights. It is never too early to start educating yourself and engaging with a partner. Get started with 69É«ÇéƬ.
