Term life insurers lean into accelerated underwriting
Most term life insurance companies use or plan to use accelerated underwriting for the line of business, according to a recent survey from Milliman.
Surveying data for key industry competitors, The Term Life Insurance Issues report includes detailed information on underwriting trends and other product and actuarial issues such as sales, profit measures, target surplus, reserves, risk management, product design, compensation, and pricing. It was based on a survey of 28 companies, 25 of whom reported using accelerated underwriting.
Also on the digital side, the use of predictive modeling is on a rise. Fifteen survey participants use predictive analytics in the accelerated underwriting algorithms, while another six use it in term under other underwriting approaches.
Sue Saip, consultant in Milliman's Chicago office shared "Similar to the past several years, carriers continue to deal with the implementation of PBR, the 2017 CSO, accelerated underwriting programs, and predictive models.” Saip continued to say, "The implications of these significant changes are yet to be seen fully, and monitoring of results will be important in the years to come.”