Traditional life insurance underwriting and issue processes have been an impediment to profitable sales in the mid-market. Most mid-market companies use rapid issue processes, which include very limited underwriting and may lead carriers to limit the size of the face amounts sold in order to mitigate the additional risk resulting from their underwriting practices.
Currently, companies have electronic underwriting tools, which allow them to perform fairly comprehensive risk screening and to issue a policy at the point-of-sale, but there is very little information available on what type of experiences companies are having with these systems.
This webcast presents the results of Phases 1 and 2 of the Study of Automated Life Insurance Underwriting sponsored by the following groups: Marketing and Distribution Section Council, Product Development Section Council, Reinsurance Section Council and Committee on Life Insurance Research, with Deloitte Consulting, LLP performing the research. The purpose of the study was to investigate industry interest for automated underwriting systems; examine how they are being used in the industry; and analyze company experiences with their systems. The following areas were explored:
the purpose of automated underwriting, i.e. how it fits into each insurer's business goals,
any operational efficiencies it produces,
its impact upon insurance sales,
quality of risk selection and claims experience from automated underwriting,
any unexpected challenges and benefits and
cultural acceptance of automated underwriting.