For years, insurance companies have taken steps to improve the life insurance underwriting experience in the hope of removing obstacles and decreasing not-taken ratios. To that end, some have forgone the traditional exam altogether in favor of simplified issue. But the truth is, consumers still aren’t flocking to life insurers, and the results of these efforts have been incremental.
Force Diagnostics has taken a different approach. We’ve developed a consumer-centric process featuring rapid testing that delivers results in 25 minutes. Tests are performed outside of the home in retail clinics and pharmacies, and results are immediately transmitted directly to the carrier’s underwriting engine for immediate processing. Because of the speed to results, innovative insurers and reinsurers could offer an accurate quote for life insurance to their consumers within 24 hours. And with the benefit of testing with fluids (HbA1C for diabetes, cotinine for nicotine, lipids for cardiovascular risk and the presence of the HIV virus, as well as body mass index and blood pressure), insurers may offer the majority of their products quickly and with assurance.
See also: Next Generation of Underwriting Is Here
The potential results of using this new process can be seen in this underwriting performance calculator.
Once the calculator is downloaded, you may select a typical life insurance policy from a dropdown menu and enter assumptions that reflect an existing underwriting process. The calculator then shows a comparison on underwriting costs, internal rate of return (or IRR) increases, issued policy increases and the potential effects on persistency. At the end, total costs per app are calculated, as are total profits.
There is tremendous value in improving the customer experience throughout the underwriting process.