Survey results reveal underwriting transformations – from predictive underwriting to segment-specific strategies – are actively accelerating across the globe
ST. LOUIS, Dec. 14, 2017 – Reinsurance Group of America, Incorporated (NYSE: RGA), a leading global life reinsurer, today released its 2017 Global Life and Health Underwriting Survey. The survey was conducted among 25 leading life and health insurers from large global, regional, and single-market companies. The findings demonstrate that the practice of underwriting is being challenged to play a leading role in the transformation of business processes and the deployment of business development strategies.
Respondents indicated that enhanced customer experience, emerging consumer demand, the ability to use more data-driven approaches, and cost efficiency are driving the shift towards less reliance on traditional underwriting. As many insurers shift towards a consumer-centric approach, a globally emerging trend is for less reliance on “one-size-fits-all” products and a renewed focus on more segment-specific strategies.
“Based on the 2017 survey results, it is apparent that transformations in underwriting are actively accelerating across the globe,” said Nic Lempriere-Hogg, Senior Vice President, Global Underwriting Solutions, RGA. “These transformations may vary by company and region, but key aspects of change, such as predictive underwriting, electronic underwriting, assimilation of disruptors, and segment-specific strategies, are being addressed by multinational and large insurers alike.”
Key findings from the survey include:
- Most survey participants (96%) indicate a significant or moderate need to improve performance overall, and 68% expect their organizations to make significant or very significant investment in improving efficiency and effectiveness of current underwriting processes over the next three to five years.
- When asked which innovations would have the most significant impact on the life and health underwriting function over the next three to five years:
- Electronic underwriting topped the list with 84% indicating that the innovation would have a significant or very significant impact.
- Followed by Big Data at 76%,
- Dynamic or reflexive underwriting at 68%,
- New evidence sources at 68%, and
- Predictive underwriting at 64%.
- Most survey respondents (71%) predicted the percentage of new business premium that is traditionally underwritten would decrease or significantly decrease within the next five years.
RGA conducts global surveys on various industry topics to provide clients with the knowledge and tools to increase efficiency, effectiveness, and profitability. RGA provided a full analysis of this survey’s results to survey participants. To view a summary report, visit www.rgare.com.
Reinsurance Group of America, Incorporated (RGA), a Fortune 500 company, is among the leading global providers of life reinsurance and financial solutions, with approximately $3.3 trillion of life reinsurance in force and assets of $58.7 billion as of September 30, 2017. Founded in 1973, RGA today is recognized for its deep technical expertise in risk and capital management, innovative solutions, and commitment to serving its clients. With headquarters in St. Louis, Missouri and operations in 26 countries, RGA delivers expert solutions in individual life reinsurance, individual living benefits reinsurance, group reinsurance, health reinsurance, facultative underwriting, product development, and financial solutions. To learn more about RGA and its businesses, visit the company’s website at www.rgare.com.