1. mthomson@synev.com 1 Integrating Underwriting with Technology for Industry Growth Presented by Maria Thomson, FSA SVP of Sales for YNEV www.synev.com For AHOU On May 1, 2012

2. mthomson@synev.com2 Factors Driving Industry to E- Underwriting and STP High acquisition costs, thus Move to higher premium sales, thus Concentration in affluent market, thus Fierce competition & low margins

3. Consequence – Life Industry Shrinkage Since 1980 Continuing decline in life insurance ownership Continuing decline in # of life insurers Continuing decline in life industry employment mthomson@synev.com3

4. Requires Simplifying and speeding the complete sales process for agents Reducing acquisition costs Automation of sales process, e- underwriting and STP all help achieve this Resurgence Requires Ability to Sell Profitably in Mid-market mthomson@synev.com4

5. And, Automation Provides Advantages in Affluent Markets More efficient underwriting – cheaper and faster Useful tools for agents Better data for tweaking rules Monks presentation provides more details mthomson@synev.com5

6. Nonmed Rapid New Business Process – Sales Elements Gather basic customer data mthomson@synev.com6

7. Nonmed Rapid New Business Process – Sales Elements (cont.) Needs analysis to recommend face, products, features mthomson@synev.com7

8. 8 Nonmed Rapid New Business Process – Sales Elements (cont.) Drill-down app (PHI), with e-data (MIB, Rx, MVR, Fraud check) gathered in background

9. mthomson@synev.com9 Nonmed Rapid New Business Process – U/W Elements 'IRMA* either makes the underwriting decision or refers to human underwriters The underwriter may set up a chat with the agent or have a phone conversation The decision would generally be made on-the-spot *IRMA is Synevs e-underwriting software, & is being used in this presentation as a proxy for any such system.

10. mthomson@synev.com10 Nonmed Rapid New Business Process – U/W Elements (cont.) Example of report underwriter might review to aid with risk assessment (next slide)

12. mthomson@synev.com12 Nonmed Rapid New Business Process – Policy Fulfillment Agent processes credit card or eft payment through the system An e-version of a completed app and policy with personalized schedule pages is produced

13. Medical Rapid New Business Process – Sales Elements Sales elements are essentially the same as with a nonmed process. mthomson@synev.com13

14. mthomson@synev.com14 Medical Rapid New Business Process – U/W Elements For apps not requiring APSs or fluids, 'IRMA' may be permitted to make the decision in some cases If additional requirements are needed, 'IRMA' can place order with vendors If policy cant be issued, agent binds case and data is transmitted to underwriting

15. mthomson@synev.com15 Medical Rapid New Business Process – U/W Elements (cont.) App data arrives in XML format 'IRMA' can generate reminders if requirements are late, and can flag underwriter when all requirements have arrived Underwriting report is generated, as shown in slide 13 Agent can access system for status

16. mthomson@synev.com16 Medical Rapid New Business Process – Policy Fulfillment Once underwriting makes decision and authorizes issuance, 'IRMA' generates e- documents for agent

17. Two-part survey conducted by Society of Actuaries to determine utilization and benefits of automated underwriting systems Results of SOA Automated Underwriting Surveys mthomson@synev.com17

18. Study: Definition of e- Underwriting System mthomson@synev.com18 A technology solution which is designed to perform all or some of the screening functions traditionally completed by underwriters, and thus seeks to reduce the manpower, time, and/or data necessary to underwrite a life insurance application

19. mthomson@synev.com19 Study: Three Basic Ways Systems are Used Alert to risk factors – speeds underwriters analysis Automation of SI/Nonmed underwriting - can make decision in a number of cases Automation of medical underwriting

20. mthomson@synev.com20 Study: Amount of Independence Granted to the Machine 41% of decisions made by 'IRMA' 15% of cases 'IRMA' recommends a decision Remaining 44% - 'IRMA' just identifies risk factors

21. mthomson@synev.com21 Study: Satisfaction with Cost Savings 50% satisfied when 'IRMA' just flags risk factors 83% satisfied when SI/Nonmed underwriting is automated No one is satisfied with cost savings from automating medical underwriting

22. mthomson@synev.com22 Study: Unexpected Challenges Generally, implementation and maintenance more work than expected Coding rules to replicate medical underwriting is very difficult Some frustrated with always having to work through vendor to make changes Inexperienced underwriters can lose effective training ground

23. mthomson@synev.com23 Study: Unexpected Benefits Systems provides lots of good data for analysis Work diversity between working with system vs. traditional underwriting Capture of all app & underwriting data in machine readable format improves the process of underwriting reviews or audits

24. mthomson@synev.com24 Industry Recovery Means More Underwriting Jobs But - changes in where jobs come from and nature of the work For those in affluent markets, work will fundamentally be the same, but new data sources and new tech will be in play Jobs for junior personnel now available at APS summary service vendors and agencies For SI and nomed business, underwriters will be making their evaluations on-the-fly at time of sale – if 'IRMA' isnt making all the decisions

25. mthomson@synev.com25 Other Types of Underwriting Work Creating and modifying rules for 'IRMA' Track developments in medicine and underwriting Evaluate new data sources Analyze company experience Group and individual health insurance Risk evaluation, plan design, claims review and wellness programs

26. mthomson@synev.com26 Conclusion All of us here will ultimately benefit from the growth in individually underwritten life and health products, which is contingent upon more rapid and cost efficient business placement. In particular, e-underwriting and STP will open up the mid-market when coupled with appropriate distribution channels and products.

27. Specialize in new business automation and SharePoint technology. Distinguished by no license fees and rapid customization. Services Automated underwriting Agency automation APS summaries SharePoint/InfoPath development Collaborating with Canada Life Re to provide full range of services to carriers seeking more rapid growth This presentation contains screen prints from prototype e-forms created by SYNEV for Canada Life About ynev Tech Services mthomson@synev.commthomson@synev.com 2

28. mthomson@synev.com28 Whats Special About SharePoint? Its a Microsoft corporate technology which integrates with Office – and your company is already licensed! Very powerful – easy to configure for a multiplicity of needs Allows SYNEV to rapidly and inexpensively tailor new business & underwriting tools to your particular needs