Life Insurance Underwriting
– Next Destination and
Path to Get There
Susan Ghalili, John Hancock Insurance
Chris Stehno, Deloitte Consultiing LLC
Jason Bowman, Swiss Re
Challenges and Opportunities in Today’s
Life Insurance Industry
•
Gaps
•
Record Low Ownership
•
Why?
•
Where is Underwriting Headed?
Insurance products are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA 02117 (not licensed in New York) and
John Hancock Life Insurance Company of New York, Valhalla, NY 10595.
© 2016 John Hancock. All rights reserved. MLINY020416024
Why Consumers Don’t Buy
$
Financial Concerns
•
Perceived high cost
•
Competing priorities
•
A new family
•
College tuition
•
Retirement
•
Long-term care
•
Legacy
Underwriting Process
•
Not consumer
friendly
•
Requirements
intrusive and invasive
•
Costs too high
How to Meet Changing
Consumer Demands?
•
For the industry to remain relevant and meet consumer
expectations in the future, life insurance companies
need to combine innovation, technologies, process and efficiency,
and new products
What Should Underwriting Be
Prepared For?
•
CHANGE:
1.
The way underwriting information is obtained
2. How the underwriting information is reviewed
3. The underwriting data
Leverage the Possibilities
Medical Data/Data
Analytics
•
Biometric data labs/screenings
•
Electronic health records/medical
records (EHR/EMR)
•
Wearable devices track movement,
activity, monitor blood pressure, heart
•
New non-invasive medical tests and
procedures
•
Obtaining lab data – new ways, new
locations
•
Analyze using new tools – more
quickly
Unconventional
Partnerships
Bring new offerings to
underwriting:
•
Data providers
•
Social media
•
Technology giants
(Google Health, IBM)
•
Health insurance
The Underwriter of the Future
Develops more
customer and market
facing relationships
Relies on
technologies,
transforming
daily work
Shifts away from
internal processes
and transactions
Is a “master
of many trades”
Has multiple
accountabilities
How Will the Changes Affect
Underwriters?
Is my company
going to be able
to keep pace with
these changes?
In addition to
everything else, do I
have to become an
IT expert?
Is my job in danger
with potentially fewer
cases requiring
Applying Predictive Analytics
and Enhanced Data
to Improve Life Insurance Risk
Analysis
What are we Missing in Mortality
Assessment?
For a 30 year old buying a 20 yr term policy, death from unintentional
injury, suicide and homicide makes up over 35% of the total deaths
Vendors and Data Available for
Predictive Analytics
17 lifestyle diseases
Including:
Diabetes, Cancers,
Cardiovascular,
Depression/Mental,
Hypertension, etc.
Purchase Propensities
Spend by Category
DTC Spend by Retailer
Brand Usage Statistics
Retailer Trans Data
Purchase Triggers
Crime Statistics
Hail Vector Data
Storm Events DB
Climate Data
Geographic Mapping
Firehouse Data
Fire Incident Data
Fed. Case Law DB
Florida Tax Records
Lit. Trends Survey
Lawsuit Climate Data
DUI/DWI Laws
CA/FL Lawyer Data
Tort Liability Index
Credit score
Bankruptcy
Liens and Loans
Deliquencies
Credit Available
Credit Lines Open
Payment Patterns
Disability Data
US Hospital Directory
Nursing Home Data
Medical Provider Data
Hosptial Visit Statistics
Doctor Practice Data
Health Interest Data
Auto Data
Carfax Vehicle History
Motor Vehicle Reports
Auto Injury / Loss Data
Driver Device Usage
Road Rage Survey
VIN Decoding Data
Lifestyle and Life Traits
Working Mothers
Active Seniors
High-Tech Segments
Life Stage Clustering
Demo. Census Data
Data Vendors
Acxiom
AM Best
AMA
American Housing Survey
American Tort Reform Foundation
Burueau of Labor Statistics
Cap Index
Carfax
CDS Hail Database
Census Point
Choicepoint
Corporate Research Board
DataLister
Directory of US Hospitals
Dun & Bradstreet
EASI Analytics
EEOC
Equifax
ESRI
Experian
Fastcase Legal Research System
Florida Tax Assessment Records
Fulbright Lititgation Trends Survey
Insurance Information Institute
Insurance Institue for Highway Safety
Internal Renvue Service
Knowlege Based Marketing (KBM)
Lawyer Data – Florida & California
LexisNexis
Martindale/Hubble Attorney Listing
MRI Purchasing Propensities
NFIRS – National Fire Reporting
NHTSA
OSHA
US Census
Representative Data Categories
Wage Data
Wealth Indicators
Unemployment Stats
EEOC Complaints DB
Ec. Freedom Index
Aggregated IRS Data
Occupational Codes
National Indices
Deloitte Disease States
Purchase Behaviors
Ailment & Discharge
Automobile
Lifestyle Clusters
Future Disruptors – Electronic
Medical/Health Records
The next big disrupter in
insurance market place, that
will lower underwriting costs
and significantly reduce the
processing speed.
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