Studies conducted by Swiss Re and prominent life insurance carriers have unveiled the revolutionary potential of Electronic Health Records (EHRs) in reshaping the conventional landscape of life and health underwriting processes.
The studies indicate that EHRs can expedite underwriting decisions by more than seven times, significantly enhancing efficiency and accuracy.
The research suggests that EHRs could replace Attending Physician Statements (APS) in nearly half of the cases that initially relied solely on APS. By utilising EHRs instead of routine age and amount requirements, such as labs and APS, the underwriting process was streamlined from a standard 15 days to as little as 2 days.
This drastic reduction promises a more customer-friendly experience, offering quicker, non-invasive decisions and personalised risk assessments by underwriters, all while maintaining mortality expectations.
Michael Bacon, Head US L&H Globals at Swiss Re, emphasised the need for adaptability and forward thinking in underwriting solutions. He stated, “EHRs can benefit the underwriting process by reducing redundant requirement ordering and eliminating the traditional age and amount approach.”
Swiss Re assembled a cross-functional team over the past two years, including actuarial, data science, and underwriting experts, to conduct a comprehensive analysis. The team evaluated the effectiveness of replacing traditional requirements with EHRs, collecting data on cases to compare risk class decisioning based on EHRs versus traditional methods.
The results demonstrated the feasibility of utilising EHRs in lieu of traditional age and amount requirements, offering faster and non-invasive underwriting processes for a significant volume of customers.
Neal Halder, Vice President and Chief Underwriter at John Hancock, expressed support for this innovative approach. “We believe that the use of Electronic Health Records creates opportunities to offer a wider range of customers a less invasive process and faster underwriting decisions. This promising research is an important step in innovating across the underwriting process while maintaining mortality expectations.”
