Exploring New Tools for Risk Mitigation in Accelerated Underwriting

But driving high straight-through processing rates while also mitigating potentially greater mortality risk tied to worsening mortality trends is critical to maintaining profitability.

Munich Re’s Digital Assessment Platform (DAP), built on advanced machine learning, predictive analytics, and our underwriting expertise, helps insurers monitor, manage, and mitigate obesity risk for improved risk selection and identification of new opportunities.

DAP allows insurers to:

• Identify and measure relative mortality and BMI misrepresentation risk (as well as other risks) at both the individual applicant and distribution channel level for insight into the applicants for whom additional evidence may be warranted
• Monitor and compare the type and amount of risk created by different segments of the distribution network
• Track how risk is changing year over year
• Benchmark BMI risk and ratings against that of competitors to find opportunities for market expansion and ensure that premiums are optimal for maximum profitability
• Determine the best set of evidence to require to improve the customer experience and reduce costs while also controlling the mortality impact

Munich Re’s body mass index (BMI) misrepresentation predictive model also helps mitigate risk in accelerated underwriting programs. Although misrepresentation of BMI is one of the main drivers of misclassification in fuidless programs, not all applicants have the same likelihood of misrepresenting BMI. Using data from pre-existing, fully underwritten cases, our model is trained to identify these patterns of BMI misrepresentation proactively for appropriate action.