Life Underwriting Reality An Independent

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Life Underwriting RealityAn Independents
AssessmentHank George, FALU, CLU,
FLMIEducator, Consultant CurmudgeonPresented
at ACLI Reinsurance Executive ForumJanuary 10,
2012 in Naples, Florida
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Hank who?

• 
  
• Lay medical officer/medical manual writer at
  Northwestern Mutual, 1973-1985
• Senior Vice President/Client Support at
  HORL/LabOne, 1987-2002
• President of Hank George, Inc., 2002-present
• 175 medical underwriting courses mean 25 pages
  and 100 literature references
• 400 books and articles only books ever for
  producers about underwriting
• Creator of worlds only super-simplified medical
  manual
• Hanks Rx Guide on-line pharmaceutical
  underwriting resource
• 50 seminars for Society of Actuaries
• 150 insurance and medical organizations addressed
  on 5 continents
• 2-time MDRT main platform speaker
• Founder and first chair, LOMA International
  Underwriting Congress
• Author of free 30-page monthly Hot Notes with
  1700 subscribers in 55 countries
• Free information clearing house site InsureIntel
  with 1500 registered members
• 2 life underwriting study groups 60 members
• Columnist in NAILBA Perspectives, Bests Review,
  ALUCA Risk-e-Business, On the Risk
• Annual Developments in Underwriting lead
  article in LOMA Resource

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• This
• Roadmap
• is available
• free
• on-line

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Every reinsurance underwriter should spend 3
months working for a brokerage market
insurer.Then, another 3 months working for a
brokerage general agency.
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Life Insurers and Engines
Revelations from the 2011 Underwriting Engine
Survey
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Engine Use Status
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Why are n 1 software firms, service vendors and
reinsurers SALIVATING over the engine market?



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Where did/will you get your engine?
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Why do you covet an engine?

• As ranked by respondents

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fully-underwritten accepted by engine without
intervention by Homo sapiens
Miles to go
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(No Transcript)
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Purchase-to-Operational Interval
Designated as 1 Engine Drawback Time to and
cost of implementation
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SUPER-SIMPLIFIEDLIFE
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Do you offer or plan to offer within the next 3
years a super-simplified life product for the
middle market?

• YES!
• 60.4 of Study Group Member Respondents

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(No Transcript)
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What would YOU say to reinsurer CEOs?
Reinsurers need to be on the cutting edge in
partnership with their clients re reaching the
middle market with super-simplified. I think they
will see even more small and middle-sized
companies looking to increase retention without
such support.
Chief Underwriter
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(No Transcript)
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Lab/Paramed Risk Scoring

• Being Piloted
• In Development

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Lab/Paramed Scoring in a Nutshell
10
10
80
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The 5 Horsemenof the Lab/Paramed Scoring
Apocalypse
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• If preferred mortality is already profitable,
  why shell out for this?
• Are the vast majority of the other 80 merely
  redundant?
• How can I sell standard/rated to a producer
  whose client meets our preferred criteria?
• How can I avoid hell to pay on reinsurer audits
  if I gave preferred (or better) rates to
  applicants who do not satisfy our treaty
  preferred criteria?
• and

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All normal tests are normal, but some
normal tests are less normal than other
normal tests.
(with apologies to George Orwell)
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Social Media Site Foragingwill be Rampant

• Will antiselection be rampant as well?

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It would be a HUGE BLUNDER for insurers to
use personal purchase records in life
underwriting!- Hank George
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• R.I.P.
• Treadmills
• ECGs
• M.D. Exams

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Already Using Will Soon
Rx Records 78 22
NT-proBNP 40 44
Preliminary responses to 2011-12 Requirement
Survey and a 25-company Study Group Survey
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Resistance is futileEither leador get out of
the way!
Take-Home Message