Open enrollment season for employee benefits is here, making it one of the most hectic times of year for life and health insurance underwriters. The time between November 1st and January 15th is one of the busiest times for human resource professionals, health insurance representatives, and supplemental life underwriters and actuaries. As employees choose the right health, vision, dental and group life insurance, many will opt for additional or supplemental life insurance. Supplemental life insurance is a great way to add additional coverage at a lower cost than purchasing an individual life policy.
Supplemental life underwriters face challenges when attempting to make a fast, accurate risk assessment:
Supplemental life underwriters make risk decisions based on past experience with the group and health questionnaires with “knock-out” questions, meaning, they ask questions that can cause an applicant either be uninsurable or require additional information to make a decision. There is not typically an agent helping an applicant understand the process, so when they receive a letter requesting blood and urine samples or to provide medical information from their primary care provider, it can be frustrating. If they do provide the information and it takes weeks to get a response, the experience may cause them to disengage altogether.
How can supplemental life underwriters improve the experience for the applicant while at the same time making confident and swift risk decisions? They can follow the lead of their counterparts on the individual life insurance side of the house by collecting additional data to make an informed decision faster. Pulling in motor vehicle records, public records, credit attributes, and medical history can provide additional insights that will help an underwriter make a decision while ensuring that actuaries price the business appropriately.
LexisNexis® Risk Solutions provides a predictive model that gives underwriters a robust view of the applicant without invasive application requirements. LexisNexis® Risk Classifier utilizes attributes from public records, driving history and credit, which are distilled into a numerical risk score so underwriters are able to make better informed underwriting decisions. These thresholds can customized to fit underwriting standards and set the threshold for cases to be referred to an underwriter — ensuring that simpler cases are fast-tracked, and that underwriters see the complex cases that require deeper attention. The score allows underwriters to make faster decisions and offer a better customer experience.