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2022 life insurance trends revealed in new report
2022 life insurance trends revealed in new report
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2022 life insurance trends revealed in new report
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helgaemines
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Long term probably not good for the carrier & for the consumer rate rise. Exams sometimes find things online data bases won't in terms of unknown disease & drug use.
But the speed to issue & placement rate may offset that. I know all the data sources are not cheap that are being used & many carriers are giving up a decent share to the reinsurers that developed some of the algorithms, etc
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There are tons of options for an independent agent to sell a no-exam or accelerated UW policy. Too many for me to list here.
You can sell these in person face to face, or over the phone. Same as a fully underwritten policy.
Im curious what your background is in life insurance. Did you just start recently?
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I recently spoke to a regional director at a major mutual about this.
It told him "I know for a fact cases are getting by in Accelerated UW at rate classes they would not with full UW".
He said the company was well aware of that and planned for it.
- Cost savings on the front end are significant. He claimed its a 95%+ savings on the cost of UW and issuing a policy. Dont forget most of these are being delivered online via pdf as well.
- They are increasing investigations during the 2 year contestability period.
- They are doing random "audits" of the UW on accelerated policies.
Meaning... that fine print you signed off on, lets them go back and pull Medical Records for an audit. This does not affect the issued policy. It just gives the carrier an idea of how accurate their accelerated UW system is performing, and allows them to make adjustments as needed.
In my experience using the systems, they are pretty accurate. Ive had a handful of cases get 1 class better than they could have with normal UW. But we are talking preferred classes, not substandard.
These days, if a person has a serious health condition, 98% of the time they are on meds for it. So the rx check is very comprehensive for most people.
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Agree. But there is a ton of people that don't go to Drs, smoke, chew, do other drugs, lie about weight. Those are the ones I think will be a longer term issue. Not for death in 1st 2 years, but later on.
I don't believe the 95% savings on UW up front. I have seen the costs of the 3-6 data tools being used. Only way there is 95% savings is if they are using AI & eliminating the actual UW looking at the case. Eventually, I think there will be.
I just see that the algorithm companies said the same about PC insurance, but I don't see any better profit ratios or combined ratios yet from the algorithms. People still get in not at fault accidents, hit in parking lot, hit deer, etc.
I hope the regional guy is right, I just think there will be some increased life rates in future for the issues not being disclosed/unknown that were seen in saliva/exams in the past
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Well, 95% savings for the ones that are approved using the accelerated program. Only 50% of their new biz is being submitted through that program. And around 60% of submissions are approved without full UW.
So just 30% of all new biz is actually seeing that 95% savings.
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And yes, using AI to eliminate an actual person looking at the case is exactly what many of them are doing.
In my personal experience, around 50%-60% id say are approved without a human ever looking at them. Another 20% are approved after a question or two is asked... often RX or MIB didnt match... the system often lets you know what the issue is so all the underwriter has to do is read the answer and sign off on it. Then around 10%-20% are kicked to full UW. Those are usually medical conditions not properly disclosed, or meds that have multiple uses, etc.
Ive had multiple policies over the past few months that were approved literally minutes after the client submitted part2 of the app. These are fully UW rates/policies. Underwritten in minutes. One client literally did not believe me and kept asking if I was sure they didnt have to do anything else... even after they had signed for delivery and had the pdf of the contract they were still asking me... LOL.
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Ive had the same thoughts about the long term aspects. However, many of those are getting underwritten anyway. Most tobacco users who try to "get it past" end up buying the policy anyway. UW doenst usually make a big deal about no dr visits if your not a senior. Most hard drugs leave your system in a few days and dont show up in a urine test. And there have always been agents who write multiple policies with multiple carriers to stay under paramed limits so the client can get away with lying about their weight.
I think they have enough historical claims experience to see how much those things affect it.
And I think that is also a big reason why they are doing the random audits of policies and pulling medical records... that will give them hard stats on how many people lied about build/tobacco/drugs/etc..
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