[email protected] 1 Integrating Underwriting with Technology for Industry Growth Presented by Maria Thomson, FSA SVP of Sales for YNEV www.synev.com For AHOU On May 1, 2012
[email protected] 1 Integrating Underwriting with Technology for Industry Growth Presented by Maria Thomson, FSA SVP of Sales for YNEV For.
Mar 26, 2015
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Integrating Underwriting with Technology for Industry GrowthIntegrating Underwriting with
Technology for Industry Growth
Presented by Maria Thomson, FSASVP of Sales for YNEV
www.synev.com
For
AHOU
On May 1, 2012
Factors Driving Industry to E-Underwriting and STP
High acquisition costs, thus
Move to higher premium sales, thus
Concentration in affluent market, thus
Fierce competition & low margins
Consequence – Life Industry Shrinkage Since 1980
Continuing decline in life insurance ownership
Continuing decline in # of life insurers Continuing decline in life industry
employment
Requires Simplifying and speeding the complete
sales process for agents Reducing acquisition costs
Automation of sales process, e-underwriting and STP all help achieve this
Resurgence Requires Ability to Sell Profitably in Mid-market
And, Automation Provides Advantages in Affluent Markets
More efficient underwriting – cheaper and faster
Useful tools for agents Better data for tweaking rules Monks’ presentation provides more
details
Nonmed Rapid New Business Process – Sales Elements (cont.)
Needs analysis to recommend face, products, features
Nonmed Rapid New Business Process – Sales Elements (cont.)
Drill-down app (PHI), with e-data (MIB, Rx, MVR, Fraud check) gathered in background
Nonmed Rapid New Business Process – U/W Elements 'IRMA‘* either makes the underwriting
decision or refers to human underwriters
The underwriter may set up a chat with the agent or have a phone conversation
The decision would generally be made on-the-spot
*IRMA is Synev’s e-underwriting software, & is being used in this presentation as a proxy for any such system.
Nonmed Rapid New Business Process – U/W Elements (cont.)
Example of report underwriter might review to aid with risk assessment (next slide)
Nonmed Rapid New Business Process – Policy Fulfillment
Agent processes credit card or eft payment through the system
An e-version of a completed app and policy with personalized schedule pages is produced
Medical Rapid New Business Process – Sales Elements
Sales elements are essentially the same as with a nonmed process.
Medical Rapid New Business Process – U/W Elements
For apps not requiring APSs or fluids, 'IRMA' may be permitted to make the decision in some cases
If additional requirements are needed, 'IRMA' can place order with vendors
If policy can’t be issued, agent binds case and data is transmitted to underwriting
Medical Rapid New Business Process – U/W Elements (cont.)
App data arrives in XML format 'IRMA' can generate reminders if
requirements are late, and can flag underwriter when all requirements have arrived
Underwriting report is generated, as shown in slide 13
Agent can access system for status
Medical Rapid New Business Process – Policy Fulfillment
Once underwriting makes decision and authorizes issuance, 'IRMA' generates e-documents for agent
Two-part survey conducted by Society of Actuaries to determine utilization and benefits of automated underwriting systems
Results of SOA Automated Underwriting Surveys
Study: Definition of e-Underwriting System
A technology solution which is designed to perform all or some of the screening functions traditionally completed by underwriters, and thus seeks to reduce the manpower, time, and/or data necessary to underwrite a life insurance application
Study: Three Basic Ways Systems are Used
Alert to risk factors – speeds underwriter’s analysis
Automation of SI/Nonmed underwriting - can make decision in a number of cases
Automation of medical underwriting
Study: Amount of Independence Granted to the Machine
41% of decisions made by 'IRMA'
15% of cases 'IRMA' recommends a decision
Remaining 44% - 'IRMA' just identifies risk factors
Study: Satisfaction with Cost Savings
50% satisfied when 'IRMA' just flags risk factors
83% satisfied when SI/Nonmed underwriting is automated
No one is satisfied with cost savings from automating medical underwriting
Study: Unexpected Challenges
Generally, implementation and maintenance more work than expected
Coding rules to replicate medical underwriting is very difficult
Some frustrated with always having to work through vendor to make changes
Inexperienced underwriters can lose effective training ground
Study: Unexpected Benefits
Systems provides lots of good data for analysis
Work diversity between working with system vs. traditional underwriting
Capture of all app & underwriting data in machine readable format improves the process of underwriting reviews or audits
Industry Recovery Means More Underwriting Jobs
But - changes in where jobs come from and nature of the work For those in affluent markets, work will fundamentally be the same, but new data sources and new tech will be in play Jobs for junior personnel now available at APS summary service vendors and agencies For SI and nomed business, underwriters will be making their evaluations on-the-fly at time of sale – if 'IRMA' isn’t making all the decisions
Other Types of Underwriting Work
Creating and modifying rules for 'IRMA' Track developments in medicine and
underwriting Evaluate new data sources Analyze company experience
Group and individual health insurance Risk evaluation, plan design, claims
review and wellness programs
Conclusion
All of us here will ultimately benefit from the growth in individually underwritten life and health products, which is contingent upon more rapid and cost efficient business placement. In particular, e-underwriting and STP will open up the mid-market when coupled with appropriate distribution channels and products.
Specialize in new business automation and SharePoint technology. Distinguished by no license fees and rapid customization.ServicesAutomated underwritingAgency automationAPS summariesSharePoint/InfoPath development
Collaborating with Canada Life Re to provide full range of services to carriers seeking more rapid growth This presentation contains screen prints from prototype e-forms created by SYNEV for Canada Life
About ynev Tech Services
What’s Special About SharePoint?
It’s a Microsoft corporate technology which integrates with Office – and your company is already licensed!
Very powerful – easy to configure for a multiplicity of needs
Allows SYNEV to rapidly and inexpensively tailor new business & underwriting tools to your particular needs
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