With shifting customer expectations, we are investing in ways to deliver a modern underwriting experience that is quick, easy and less invasive for our clients.
That’s why we’re using new tools and data as an alternative approach to assess risk in our WriteFit Underwriting program.
Traditionally, underwriters have reviewed medical histories, lifestyle traits and behavioral characteristics to accurately assess an applicant’s risk. We’ve incorporated a new and emerging tool into this program that focuses on behavioral risk aspects – LexisNexis Risk Classifier.
The Risk Classifier predicts relative mortality based on a number of behaviors. Because it relies on this new data, it differs from traditional underwriting information. And it allows us to deliver a fast and easy underwriting experience for our clients.
With its predictive modeling approach, Risk Classifier provides the relative mortality risk of an applicant based on a number of individual behavioral factors.
Attributes such as property ownership, court records or criminal history, driving history, professional licenses and financial management are used to determine a score that reflects the relationship with mortality risk.
For instance, a high Risk Classifier score may point to a healthy behavior, like someone who has excellent financial well-being. This could lead to a lower overall stress level — and result in long-term health and mortality.
Alternatively, a low Risk Classifier may point to risky behaviors, such as major driving violations or criminal history, which correlates to higher relative mortality risk.
We’ve studied this tool and customized our underwriting guidelines to fit our WriteFit Underwriting program.
Here are some initial Risk Classifier findings we’ve noticed:
- It adequately classifies mortality risk based on several behavioral attributes
- It can result in different decisions (compared to traditional underwriting) based on information used to assess risk
- It improves the client experience by allowing underwriting that does not require invasive testing
- It facilitates a quick underwriting decision and improved placement rates so we can provide more protection for clients
We will continue to monitor our WriteFit Underwriting program and the performance of Risk Classifier.