Colm Kennedy helps life insurers automate and pace up underwriting processes.
Kennedy is govt vp Americas at Munich Re Automation Options. Corporations like Lincoln Monetary flip to him for concepts about easy methods to overview protection purposes higher.
Shopper group reps have been questioning whether or not the brand new accelerated underwriting methods are honest. Hank George, a veteran underwriting, has puzzled whether or not the methods present sufficient of the information that underwriters must detect issues created by the COVID-19 pandemic.
(Associated: Evaluation COVID-19 and Quick Underwriting Are a Dangerous Combine: Veteran Underwriter)
Listed below are three issues Kennedy stated about efforts to automate life insurance coverage underwriting, drawn from a latest electronic mail interview.
1. Life insurers just like the automated methods they’ve already added.
Munich Re tends to deal with “augmented automated underwriting processes,” or methods that put automation within the service of a live-human underwriter.
Munich Re surveys its clients each quarter on quite a lot of topics, and it makes use of these surveys to see how Munich Re expertise is affecting its clients’ operations, Kennedy stated.
Prospects say modernizing underwriting methods helps them get greater shortly, reply to distributors extra shortly, and enhance new enterprise, Kennedy stated.
“The technology is providing growth opportunities, and quicker processes, and, presumably, resulting in lower internal costs,” Kennedy stated.
2. Munich Re is looking forward to any results automated underwriting may have on danger choice.
“The reality in the U.S. life insurance market is that applicants can go through either an automated underwriting path or a traditional path, and it is very important to understand how the drivers of risk selection in both circumstances translates into a price,” Kennedy stated.
3. Applicant honesty is a matter.
“One of the key drivers of risk is the accuracy of applicant disclosure, especially in an automated underwriting world,” Kennedy stated.
Munich Re is continually taking a look at methods to mitigate applicant disclosure accuracy danger, via new processes and new information, to attempt to make the data an automatic system will get much like the data a standard underwriter would get, Kennedy stated.
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