strength through innovation

Transcription

1 AXA Equitable s Underwriting strength through innovation Cat.# (2/13)

2 agenda strength through innovation Who We Are Special Programs Underwriting Niches Marketing Resources 2

3 AXA Equitable s most competitive strength who we are 3

4 who we are underwriting teams our underwriting teams 80+ Underwriters; average of 20+ years experience Expertise in navigating the grey by taking a holistic approach to underwriting each case Understand the competitive nature of the business Options oriented; solutions driven Dedicated to building and maintaining relationships our workflows Maximize our strong experienced staff, with easy and direct access by phone or Large Case Concierge Service and expert case design General Dedicated Relationship Management for a tailored response to individual agency needs 4

5 who we are five financial experts with over 75 years of combined insurance experience Develop financial solutions for complicated or unique case designs such as Premium financing and trustowned coverage Utilize their accomplished investigative skills to access public records and Internet databases Assist with in-house reviews that validate submitted financials which may eliminate the need for additional financial requirements 5

6 who we are four medical directors, combined at three sites, with a total of over 40 years experience Committed to research and development of new medical updates keeping our guidance cutting edge All are Insurance Medicine Board Certified each with unique focus and experience Provide holistic training and educational opportunities both internally and externally 6

7 underwriting programs important Please contact your Underwriter or RVP for further details. predictive analytics EasyUnderwriting program AXA is piloting a new underwriting process that uses technology to analyze application information. This data helps determine the underwriting rate class and opportunity for potential Jet Issue Benefits: Faster cycle time for cases that meet predefined criteria Underwriting decisions, on average are made within 3 business days Cases that fit criteria do not require exams and labs An easy, enhanced customer experience 7

8 underwriting programs good health credit program (GHCP) Giving credit where credit is due! Can a Proposed Insured with a demonstrated healthy lifestyle get credits to improve his or her overall rating? YES! In fact, eligible Standard cases can move to better than Standard rates. Factors considered include: Favorable cardiovascular risk factors Good preventative medical care Lifestyle changes and improved health habits 8

9 underwriting programs good health credit program Unlike traditional limiting industry table shave programs, AXA Equitable s GHCP allows credits for: All Products Face amount limits up to available full retention: $20 million individual or $25 million survivorship Both lives on a survivorship policy Cases rated up to Table D 9

10 underwriting niches and advantages professional athletes, entertainers and high profile individuals Personally-Owned Business/Team-Owned PRODUCTS RETENTION COMPENSATION TEAM LIMITS REINSURANCE All Term and Permanent Full Retention Regular Schedule N/A None 10-Year Level Term and ART Full Retention Levelized Schedule No Limit None 10

11 underwriting programs AXA Equitable retention and automatic limits (standard or better risks in millions) Highlights: 2 Large Retention Capacity Strong Reinsurance Relationships Lower limits apply to juvenile insurance 2 For policies with increasing amounts, i.e., policies with Return of Premium Death Benefit Rider (ROPR), the ultimate amount per the illustration must be used for retention and automatic reinsurance calculations. 3 For ASUL products, death benefit is limited to our retention. 11

12 underwriting niches and advantages preferred classification available with personal history of cancer Better than Standard offers can be considered on a case-bycase basis for some cancers with very favorable prognosis. This would include: Melanoma-in-situ (Clark s level 1 melanoma), without history of dysplastic nevi Papillary or mixed (papillary-follicular) carcinoma of thyroid Testicular seminoma Carcinoma-in-situ or CIN/dysplasia of cervix Carcinoma-in-situ of colon, without subsequent adenomatous polyps 12

13 underwriting niches and advantages favorable factors for consideration of better than standard with personal history of cancer Non-smoker Early stage and early grade of tumor (in situ or stage I) at time of diagnosis and treatment Surgical treatment only (no radiation or chemotherapy) Current age 50 and up 10 or more years since cure of cancer Excellent follow-up and routine preventive health care 13

14 underwriting niches and advantages prostate cancer Early stage, low grade prostate cancers in older males are often Standard At ages 60 and up, non-apical, organ confined disease, Gleason 8 and lower, treated by prostatectomy, with favorable PSA s for 5 years - may qualify for Standard! Age 66 and up, even with a PSA rise, AXA can offer on selected cases of biochemical relapse of Prostate Cancer New! Transient increases of PSA that return to acceptable ranges on their own without any form of treatment will not be considered a relapse 14

15 medical case study prostate cancer Male, age 69 IUL, $3 million No coverage in force or applied for Prostatectomy at age 62 for adenocarcinoma of the prostate, Gleason score 7 Pre-surgery PSA (8) Annual follow-ups with PSA values <(0.1) 18 months ago, PSA rose to (0.2). At six-month recheck PSA was (0.3). With no further intervention, PSA dropped back to (0.1) one year ago Insurance blood profile PSA is stable at (0.1) Otherwise healthy individual taking no medications, normal blood pressures, lipids and family history. AXA offers Standard 15

16 underwriting niches and advantages MGUS Monoclonal Gammopathy of Undetermined Significance is a condition in which a paraprotein (IgG, IgM and IgA ) is elevated in the blood. important Lower identified risk factors result in lower ratings! Occurs in 5% of those over age 70 AXA s ability to provide more favorable offers has improved All cases of Multiple Myeloma are preceded by MGUS, but not all cases of MGUS will progress to Multiple Myeloma 16

17 medical case study - MGUS Face Amount $2,500,000, UL Male age 66, Non-smoker Otherwise healthy individual taking no medications, normal blood pressures, lipids and family history Diagnosed with MGUS a year ago when visiting his MD for a routine physical, he has remained asymptomatic. Extensive lab work included: Serum M-protein level < 3g/dl All IgG, IgM and IgA levels within acceptable ranges Bone marrow plasma cells were < 10% All IgG, IgM and IgA levels within acceptable ranges Bone marrow plasma cells were < 10% Urine M-protein < 1gm/day Physical exam favorable with absence of organ or tissue impairment related to myeloma 17

18 medical case study MGUS Due to recent Medical Manual updates, AXA was able to give this client the most favorable rating of Standard with a Flat Extra of $2.00 per thousand. Prior to AXA s MD Research and Manual updates, the Flat Extra could have been as high as $7.00 per thousand. AXA offers Standard w/flat Extra $2.00/

19 underwriting niches and advantages barrett s esophagus Usually related to Chronic GERD. Treatment: Gastric suppression with proton pump inhibitor (PPI) Complications: Low grade dysplasia High-grade dysplasia Esophageal adenocarcinoma Higher incidence in males than females. Over age 45 is highest risk group. More cases can qualify for Standard and upgrade to Standard Plus via the Good Health Credit Program Resolution on endoscopy or biopsy may qualify for better offers 19

20 medical case study barrett s esophagus Male age 55, 5 10, 200 lbs. Quit smoking 18 years ago $6,000,000, VUL and Term 20 coverage Family History: Father alive - age 77, Mother died at 71 of colon cancer Treated Hyperlipidemia, Cholesterol ratio 3.5 Blood Pressure 120/80 All other risk factors favorable Referred to gastroenterologist 3 years ago with worsening reflux symptoms not relieved by medication. An endoscopy was performed revealing Barrett s Esophagus with no dysplasia. Follow up endoscopy this year confirmed Barrett s Esophagus with no dysplasia AXA offers Standard Plus 20

21 underwriting niches and advantages rheumatoid arthritis Rheumatoid Arthritis (RA) is an autoimmune form of arthritis that causes pain, swelling, stiffness and loss of function in the joints. Can also affect eyes, mouth and lungs. Lower identified risk factors result in lower ratings! Favorable cases are those in remission for more than 1 year, could now be Standard and eligible for Standard Plus via the Good Health Credit Program Will still consider someone on medication for better than standard if they meet all ACR Criteria Use of disease modifying Anti-Rheumatic drugs no longer considered an adverse factor in treatment of RA, leading to more aggressive offers. 21

22 medical case study - rheumatoid arthritis Face amount: $5,000,000, IUL Female, age 49, Nonsmoker Rheumatoid arthritis, diagnosed at age 46. Past treatment for depression, no longer on RX Minimal joint pain in hands and feet, no morning stiffness or swelling, started Methotrexate 2010-significant discomfort in left ankle. Rx Enbrel and Prednisone taper (10 mg/day for 3 days, then drop to 5 mg/day for 3 days, then discontinue) 2011-RA stable, no joint swelling, no pain other than shoulders, but appears to be due to muscle strain, not RA still taking Enbrel and Methotrexate, no swelling, no morning stiffness, no joint pain Satisfies all ACR criteria for remission for over 1 year. No additional debits for current or past medication usage Good Health Credits available for Cholesterol, No tobacco usage, Family History, Build, Blood Pressure, regular follow-up with MD. 22

23 medical case study rheumatoid arthritis Rheumatoid Arthritis in remission, even while on maintenance medications, including multiple Disease Modifying Anti-Rheumatic Drugs can qualify for better than Standard rates. AXA offers Standard Plus 23

24 underwriting niches and advantages EBCT results AXA looks at the whole case giving credit for favorable routine care and control of blood pressure and cholesterol and other coronary risk factors: Percentile 0 74: all Preferred levels available Percentile 75 89: can consider for Preferred or Standard Plus with normal imaging stress test, favorable risk factors, etc. Percentile 90+: Standard is best offer, with normal imaging stress test, favorable risk factors, etc. important A cardiac catheterization report remains the gold standard if done as part of the cardiac workup 24

25 medical case study - EBCT Face Amount: $5,000,000, VUL Male age 65, Nonsmoker Treated Hyperlipidemia, Cholesterol ratio 4.5 Blood Pressure 120/80 EBCT score of 70th percentile All other risk factors favorable AXA offers Preferred Elite 25

26 underwriting niches and advantages kidney function studies and GFR What s the link? When evaluating Kidney Function Tests, the GFR (Glomerular Filtration Rate) is the best overall index of kidney function AXA now uses the estimated GFR Mayo Clinic Quadratic calculator instead of the National Kidney Foundation Calculator The GFR Mayo Clinic calculator provides a better evaluation of kidney function in older individuals which often leads to better offers important Individuals with a GFR of 70% or greater can qualify for best class rates! 26

27 underwriting niches and advantages sleep apnea Sleep Apnea is a sleep disorder characterized by abnormal pauses in breathing or instances of abnormally low breathing during sleep. All Preferred classes are available with mild sleep apnea (AHI less than 20, O 2 saturation > 85%) All Preferred classes available on cases treated with effective CPAP therapy, with demonstrated compliance 27

28 underwriting niches and advantages important Cases can be considered for all levels of Preferred after two years based on the merit of the improvement, stability of the treatment, and its effects on all associated impairments bariatric surgery Significant, sustained weight loss over 2 years. Look for improvement in: hypertension diabetes diet and exercise 28

29 underwriting niches and advantages important Cases can be considered for all levels of Preferred with 100 or more solo hours and flying between 26 and 150 hours a year aviation AXA Equitable offers Private Pilots the opportunity to qualify for all Preferred Classes for risks evaluated up to $3.50/1000 for their aviation activities Licensed private pilots with 100 or more solo hours and flying between 26 and 150 hours a year incur no extra premium assessment 29

30 underwriting niches and advantages important AXA Equitable now financially underwrites cases based on the projected inheritance of the Insured The assets of one generation can justify life insurance coverage for the next projected inheritance Guidelines: 1+1 = 2 Turn 1 sale into 2 (or more!) Generation 1 (G1) must be: a) age 75 or older, or b) under age 75 with evidence of a life expectancy under 5 years Require confirmation that established estate planning is in place that involves transfer of estate to the next generation Verification of net worth of G1 An appreciation factor may be considered on a case-by-case basis (possible 3-5% for max period of 10 years), subject to the structure of the inheritance planning, details of assets to be inherited (value and type of asset), and review by the Financial Due Diligence Team 30

31 financial case study projected inheritance Male, age 45, non-smoker Applying for $65 million IUL (AXA s Jumbo Limit) Purpose of insurance, estate planning, Sole heir to his 75-year old mother s estate Beneficiary is an Irrevocable Life Insurance Trust for the Benefit of the Proposed Insured s Children, Grantor Mother Proposed Insured s individual net worth, exclusive of future inheritance, is $20 million Mortality calculation at the Proposed Insured s age 45, would qualify for a total line of $43 million Bequeather/mother s net worth is $28 million Mortality calculation at mother s age 75 qualifies for $27 million which represents son s possible estate tax liability 31

32 financial case study projected inheritance the solution: By adding the current projected death benefit need of the Proposed Insured and the projected future inheritance from the mother s projected estate need, AXA was able to justify the amount applied for: $65 million Our competition would have allowed only $40 million 32

33 AXA Equitable important Here is what sets us apart from the competition what sets AXA apart? GHCP credit program marketing support high retention medical directors underwriting expertise financial team 33

34 underwriting marketing support Marketing Flyers Underwriting Case Studies My Business > Underwriting Brainsharks podcasts underwriting campaigns 34

35 thank you Please visit for more information 35 G30859

36 disclosure This seminar is for informational uses only All guarantees are based on the claims-paying ability of AXA Equitable. This material should not be considered tax or legal advice. Clients should consult their own tax and legal advisors regarding their particular circumstances AXA Equitable Life Insurance Company. All rights reserved Avenue of the Americas, New York, NY 10104, (212)