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Fast-Tracking Digital Transformation: COVID-19 Has Put a Spotlight on Accelerated Underwriting

Jeff Reynolds
Blog Post05/27/2020
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Life insurance carriers know the application process can seem long and tedious to many clients. As insurance companies continue to deal with the economic impact of COVID-19, they can also use this opportunity to innovate and find ways to stay relevant in their customers’ lives. For many, embracing accelerated underwriting should be a top priority.

What is accelerated underwriting and why do you need it?

Accelerated underwriting is a process that allows life carriers to assess risk and assign price in real time. By leveraging third-party data instead of requiring an in-person medical exam, insurers can immediately issue a policy for many applicants while diverting those who require further underwriting review.

Using customary underwriting data obtained from sources like the Medical Information Bureau, prescription drug history, electronic medical records and a Motor Vehicle Report, along with supplemental data from credit-based scoring models, accelerated underwriting allows life carriers to predict mortality, lifetime value and persistency without a full, manual underwriting review.

Shedding dependency on in-person medical exams puts less of a burden on the applicant and helps protect employees and consumers. It also keeps sales channels open and facilitates a positive customer experience. As consumers demand a faster, more efficient underwriting processes, accelerated underwriting is the answer many life carriers need.

By prioritizing the implementation of accelerated underwriting programs, you can address current needs and lay the foundation for future premium growth by more effectively competing for customers online.

How to implement accelerated underwriting

Follow these five essential steps to prioritize and adopt accelerated underwriting:

  1. Establish online sales channels through your company’s website or app

  2. Add predictive, credit-based scores like TransUnion’s TrueRisk® Life to your underwriting process

  3. Include court record violation data to identify drivers with ratable violation activity

  4. Selectively order MVRs to optimize spend

  5. Deploy fraud mitigation techniques to identify and flag suspicious activity in online channels, account management or claims

Top benefits of accelerated underwriting

Now is the time to realize the advantages of accelerated underwriting, including:

  • Premium growth through boosted sales in an online environment

  • Increased efficiency by streamlining quoting and underwriting processes

  • Profitability with better alignment of premium to risk

  • Improved customer experience with faster issue times and personalized coverage recommendations

Don’t let this opportunity pass

The future of life insurance policy acquisition and underwriting are moving toward being almost fully digital. Creating a seamless experience by implementing accelerated underwriting is foundational to this transformation and will ultimately benefit your business and customers alike.

Learn more about how you can gain market leverage by downloading the full brief on accelerated underwriting.

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