Munich Re Life US and insurtech Paperless Solutions Group (PSG) have announced a new combined risk assessment and e-application solution, that allows life insurance carriers to underwrite new policies faster and with greater accuracy.
The solution combines the risk assessment and instant decisioning power of Munich Re’s alitheia with the seamless application and point-of-sale process of PSG’s eValuate PLUS.
By leveraging alitheia’s innovative technology and analytics, life insurers will be able to achieve straight-through processing (STP) rates in the range of 40-to-50%, far surpassing industry norms – a Munich Re report revealed an industry average STP rate for 2022 of 21% – and provide customers with a quick and easy online insurance application using eValuate PLUS.
Cases that are ineligible for instant decisions via alitheia will still benefit from superior turnaround times and approval rates, the reinsurer noted.
Munich Re explained that this is possible as alitheia integrates with Munich Re Automation Solution’s Underwriter Workbench, a software application within ALLFINANZ, to support data-assisted manual underwriting.
It is through this combined solution that over 80% of cases that are not eligible for instant decisions via alitheia are able to be manually approved within 48 hours without fluids through assisted underwriting.
“We are proud to have achieved industry topping STP rates while limiting mortality cost,” said Brooke Tyson, 2nd VP of Operations, Munich Re Life US. “By integrating alitheia with leading technology from partners like PSG, we are enabling life insurance carriers and distributors to grow their business while bringing life insurance to more people. We will continue to leverage alitheia’s cutting-edge capabilities to transform the future of risk assessment.”
Additionally, the combined solution is highly adaptable to different products, distribution channels, and target markets.
It brings the benefit of alitheia’s best-in-class rules, machine learning models, and data provider integrations to produce instant decisions that, according to Munich Re and PSG, enable life insurance carriers to underwrite new policies with more confidence and at greater speed and scale and streamline the life insurance purchasing journey.
“The combination of alitheia and PSG’s eValuate PLUS provides a powerful solution for life insurers looking to automate their underwriting and, at the same time, improve their customer and agent experiences, said Jeff McCauley, President of PSG.
“What we have created with Munich Re is a truly modern and interconnected process that has been tested by large agencies for validation and will drive life insurance sales through a seamless seller-buyer approach,” he concluded.