ATLANTA — Munich Re US, (Life) validates LexisNexis® Risk Classifier as an effective predictor of mortality for the U.S. insurance-applicant population. In a recently-published white paper, Munich Re assessed the effectiveness of the LexisNexis Risk Classifier in stratifying the mortality risk profile of a pool of insurance shoppers.
LexisNexis Risk Classifier is a proprietary scoring algorithm that includes public records, credit information and motor vehicle history to predict the relative mortality risk of individuals.
“Accelerated underwriting programs for life insurance offer better customer experience through faster time to issue and less intrusive underwriting. When fluids aren’t used in underwriting, it becomes important to optimize the use of remaining information to best manage mortality risk. Our validation of LexisNexis Risk Classifier confirms that the score effectively stratifies mortality risk across attributes. Alternative data-based mortality scores offer a new dimension of mortality risk that is not reliant on medical information, improving the fit of mortality predictions on top of health-based underwriting criteria. At Munich Re, we believe it’s a valuable tool in managing the extra mortality risk associated with accelerated underwriting programs,” said Patrick Sullivan, senior vice president, integrated analytics at Munich Re.
Insurers considering alternative data-based mortality scores should begin with a retrospective validation study on their own experience data to assess the impact of applying LexisNexis Risk Classifier to their unique target market, distribution, and underwriting process.
“Historically, consumers had to accept higher premiums in exchange for a less-invasive and time-consuming underwriting process. LexisNexis Risk Classifier helps provide a fast and easy process for consumers, while at the same time helping life insurers minimize the risks ordinarily associated with expedited underwriting,” said Patrick Sugent, vice president, analytics, LexisNexis Risk Solutions. “Individuals who would not have bought life insurance because of the cumbersome process now have the opportunity to buy a life policy because the purchasing process is easier than ever.”
Munich American Reassurance Company
Munich Re, US (Life), founded in 1959, is one of the largest reinsurers in the U.S. offering life and disability reinsurance to insurance companies throughout the United States. The company also writes group, credit and other reinsurance products. Headquartered in Atlanta, with offices in Chicago and New York, the company is licensed, accredited or authorized in all fifty states; Washington, D.C.; Guam; and Puerto Rico.
Munich Re stands for exceptional solution-based expertise, consistent risk management, financial stability and client proximity. This is how Munich Re creates value for clients, shareholders and staff. In the financial year 2017, the Group – which combines primary insurance and reinsurance under one roof – achieved a profit of €0.4bn. It operates in all lines of insurance, with over 42,000 employees throughout the world. With premium income of around €32bn from reinsurance alone, it is one of the world’s leading reinsurers. Especially when clients require solutions for complex risks, Munich Re is a much sought-after risk carrier. Its primary insurance operations are concentrated mainly in ERGO, one of the leading insurance groups in Germany and Europe. ERGO is represented in over 30 countries worldwide and offers a comprehensive range of insurances, provision products and services. In 2017, ERGO posted premium income of €17.5bn. Munich Re’s global investments (excluding insurance-related investments) amounting to €218bn are managed by MEAG, which also makes its competence available to private and institutional investors outside the Group.
About LexisNexis Risk Solutions
At LexisNexis Risk Solutions, we believe in the power of data and advanced analytics for better risk management. With over 40 years of expertise, we are the trusted data analytics provider for organizations seeking actionable insights to manage risks and improve results while upholding the highest standards for security and privacy. Headquartered in metro Atlanta USA, LexisNexis Risk Solutions serves customers in more than 100 countries and is part of RELX Group, a global provider of information and analytics for professional and business customers across industries. For more information, please visit www.risk.lexisnexis.com.