Session 161 PD - Best Practices & Considerations for Accelerated Underwriting. Moderator: Donna Christine Megregian, FSA, MAAA

Transcription

1 Session 161 PD - Best Practices & Considerations for Accelerated Underwriting Moderator: Donna Christine Megregian, FSA, MAAA Presenters: Gregory A. Brandner, FSA, MAAA Lisa Hollenbeck Renetzky, FSA, MAAA SOA Antitrust Compliance Guidelines SOA Presentation Disclaimer

2 2017 SOA Annual Meeting & Exhibit MODERATOR: DONNA MEGREGIAN, FSA, MAAA PRESENTERS: GREGORY BRANDNER, FSA, MAAA LISA RENETZKY, FSA, MAAA Session 161, Best Practices & Considerations for Accelerated Underwriting Date

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4 Presentation Disclaimer Presentations are intended for educational purposes only and do not replace independent professional judgment. Statements of fact and opinions expressed are those of the participants individually and, unless expressly stated to the contrary, are not the opinion or position of the Society of Actuaries, its cosponsors or its committees. The Society of Actuaries does not endorse or approve, and assumes no responsibility for, the content, accuracy or completeness of the information presented. Attendees should note that the sessions are audio-recorded and may be published in various media, including print, audio and video formats without further notice. 3

5 Do you have an accelerated underwriting program? 1. Yes already implemented 2. Working on it, but not implemented yet 3. No, but under consideration 53% 4. No and no plans to within the next 1-2 years 21% 21% 5%

6 Where does your accelerated underwriting program fit in the spectrum of underwriting paradigms? 1. Close to guaranteed issue 2. Simplified Issue 3. Automated Underwriting 4. Simplified Underwriting 5. Close to medically underwritten 50% 50% 0% 0% 0%

7 How do you define accelerated underwriting? 6

8 Where does your accelerated underwriting program fit in the spectrum of underwriting paradigms? 1. Close to guaranteed issue 2. Simplified Issue 3. Automated Underwriting 4. Simplified Underwriting 40% 32% 5. Close to medically underwritten 0% 5% 23%

9 What is the maximum face amount you are offering on an AUW basis? 1. $250k 2. $500k 3. $1 million 4. $5 million 33% 5. More than $5 million 6. No AUW program 14% 26% 0% 3% 24%

10 What is/are the reason(s) to move to develop an accelerated underwriting program? 9

11 How does accelerated underwriting interact with other underwriting paradigms? Why is it important? 10

12 If you have a AUW program, which data sources are you using in your process (choose all that apply)? 1. MIB 2. MVR 3. Rx 4. Credit/Credit-based score 5. Industry predictive model 6. In-house predictive model 7. Smoke predictor 8. Facial recognition 9. EHR 10. Wearables 83% 83% 71% 56% 29% 25% 4% 2% 0% 0%

13 What tools are useful and/or necessary in your opinion to develop a program and why? What roles do the new tools play in changing the underwriting process? 12

14 Where would you suggest a company start when looking at AUW? 13

15 What area of your company is leading the AUW movement/exploration? 1. Marketing 2. Pricing 3. Underwriting 4. Distribution 5. Senior Management 6. IT 7. Legal 8. Other

16 Who needs to be involved in the conversation as it pertains to AUW program development? 15

17 What area(s) of the company are leading the implementation effort? Is this useful and how would you suggest improving that implementation effort? 16

18 Your marketing area wants a new AUW program. They say that other companies are getting 80%-90% of people through their programs and want that as well. How do you respond to this politely. What are the balancing factors when developing an AUW program? Where do you begin when developing assumptions for AUW? What data is available or how do you make it available? 17

19 Many carriers are introducing AUW programs at the same retail premium rates and same risk classes as their current medically underwritten products. Does this mean those carriers are expecting the same mortality results as for their fully underwritten business? 18

20 How long do you think creating and implementing an accelerated underwriting program takes? 1. <3 months months months months months 18% 34% 41% 0% 7%

21 What are some difficult issues during development, then during implementation of an AUW program? Development being the idea/concept of the program, implementation meaning execution of the program. 20

22 Pros and cons of hold outs? What have you heard about how hold out programs are working? What other kind of monitoring should be done? 21

23 Do you have any suggestions on how to help train underwriters when AUW may be allowing basic training cases to be sent through without an underwriter looking at the case? 22

24 How does AUW fit in the changing PBR world? What do companies need to consider and work through? 23

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