Munich Re Insurtech Exec Talks Underwriting Tools

Customers say modernizing underwriting systems is helping them get bigger quickly, respond to distributors more quickly, and increase new business, Kennedy said.

“The technology is providing growth opportunities, and quicker processes, and, presumably, resulting in lower internal costs,” Kennedy said.

2. Munich Re is watching for any effects automated underwriting may have on risk selection.

“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 said.

3. Applicant honesty is an issue.

“One of the key drivers of risk is the accuracy of applicant disclosure, especially in an automated underwriting world,” Kennedy said.

Munich Re is constantly looking at ways to mitigate applicant disclosure accuracy risk, through new processes and new data, to try to make the information an automated system gets similar to the information a traditional underwriter would get, Kennedy said.

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