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 RGA 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.
Myth 2: You have to go big or go home.We often hear from clients considering an accelerated underwriting program that they presume it is a massive end-to-end project. In fact, it doesn’t have to be all or nothing. It is possible to implement one tool to address a specific cohort of your business and build from there. Deploying accelerated underwriting programs doesn’t have to be a huge IT project either. Tools can be added through a portal and do not always require major technological infrastructure.
Take, for example, TrueRisk® Life, a credit-based insurance score that is highly predictive of mortality and lapse risk. This tool allows for risk segmentation without invasive measures. It can be used to dynamically push applications down different paths, providing a more accurate classification, reducing underwriting costs and enabling faster policy issues – ultimately leading to a better customer journey. The tool can be integrated into a company’s underwriting protocols at different phases based on the company’s needs.
It may look monumental now, but like any journey, the path to accelerated underwriting can be accomplished by taking one step at a time.
- Lisa Renetzky, Senior Vice President, Chief Actuary, U.S. Mortality Markets, RGA
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.
Reprinted with permission of ON THE RISK, Journal of the Academy of Life Underwriting (www.ontherisk.com).