1. Life Underwriting Trends and Opportunities
Konanani Maswoba
Munichre

2. The next 45 minutes Premium and volumes contraction.
Closed-book operations.
Self-service for policy servicing.
Business intelligence and analytics for underwriting
HIV underwriting

3. Handover Presentation for HIV – Actual study
Lee Sarkin, Anne Zutavern, Veema Ramsing, Susan von dem Knesebeck

4. HIV Impact and Basics HIV is a frequent condition
Even outside sub Saharan Africa

5. Course of HIV infection without ART
CD4 count declines The higher the VL, the faster CD4 declines, the greater the risk of developing AIDS
Graph source: Pantaleo, G et al New concepts in the immunopathogenesis of human immunodeficiency virus infection". New England Journal of Medicine 328(5):
29/11/2018
HIV presentation to review team

6. Trend in death rates since ART introduction
steep increase in HIV deaths until early 90s
End of 90s steep decrease due to the introduction of ART
Rapidly increasing HIV mortality and tremendous success of ART
29/11/2018
HIV presentation to review team

7. Course of HIV infection and response to ART
With initiation viral load becomes undetectable and
CD4 counts increase
 with ART, CD4 recovery and viral load falls to undetectable levels
Graph source: Pantaleo, G et al New concepts in the immunopathogenesis of human immunodeficiency virus infection". New England Journal of Medicine 328(5):
HIV presentation to review team

8. Premium and volumes contraction
The world economy slowed down again.
Negative impact on the global insurance industry and direct premiums dropped by 0.8% in real terms.
The near term future still looks uncertain
Emerging markets are expected to continue their growth.
Steep premium drops in China and India in the wake of regulatory changes that restricted the use of certain distribution channels.

9. Premium and volumes contraction
Growth has also been affected by the steady lapsation rates.
Insurers are facing difficulty in coping with low persistency, leading to high pressure on revenue generation.
The financial management of insurers is negatively impacted due to lapses by policy holders, and this trend has led to costlier policies for customers and, in turn, affects overall revenue growth.

10. Emerging Trends in Policy Administration and Underwriting
Closed-book operations:
Adoption of self service for policy servicing
Enhanced use of Business Intelligence analytics for underwriting
HIV underwriting

11. Trend 1: Closed-Book Operations
Looking for new options to reduce operational costs.
Outsourcing closed-book operations.
These policies are nonrevenue generating but are still prone to claims and servicing expenses.
They are often maintained in legacy systems which results in costly operations and maintenance challenges.

12. Trend 1: Closed-Book Operations
Closed-book outsourcing has become important among Tier 1 and Tier 2 life insurers as an opportunity to rid themselves of legacy systems where conversion is too expensive or risky.
allows insurers to find operationalefficiencies, and to shift resources to more value-added activities

13. Trend 1: Closed-Book Operations
closed-book initiatives is driven by technology considerations, where companies identify outsourcing as an alternative to system replacement or modernization
The important vendor qualification criteria that insurers should look for are: quality of services; cost of services; process adherence; and financial stability.

14. Most Important Considerations for Outsourcing Closed and Open Book Operations,
Cost seem to be the dominant consideration.
One would have expected management leverage to rank higher

15. Closed book operation- final word
Outsourcers deliver value by focusing on the design, implementation, and operation of the most efficient processes for improving insurer profitability. As a result, insurers around the globe are becoming more comfortable outsourcing these operations.
However, insurers need to avoid overdependence on a single vendor which could expose them to potential risks of overpricing, vendor lock-ins, and disruptions based on operational failure

16. Closed book operation-Final word
A badly managed closed-book outsourcing engagement could impact the servicing of existing end customers—leading to reputation loss in the market, increased customer attrition, and resultant revenue losses.
The global trend is that an increasing number of insurers are moving their closed-book operations to BPOs to find operational efficiencies, and to shift staffing to more productive value-added activities as tasks are moved externally.

17. Emerging Trends in Policy Administration and Underwriting
Closed-book operations.
Adoption of self service for policy servicing.
Enhanced use of Business Intelligence analytics for underwriting.
HIV underwriting.

18. Adoption of self service for policy servicing
In a bid to decrease customer service costs, a majority of global insurers are increasingly providing self service options to their customers, redirecting customer interactions from branch or call centers.
Online self-service functionalities like online bill payment, checking policy information, or making policy changes online are also having a significant impact on customers’ choice of an insurance provider.

19. Adoption of self service for policy servicing
In addition to cost savings, mobile self-service is beginning to influence insurance shopping decisions and will serve as a key differentiator for insurance companies
As quotation and application functions at many leading insurance companies have been mostly optimized, insurers are moving on to post-purchase activities like self-service as a next step of automation.

20. Adoption of self service for policy servicing
online self-service also provides a platform for cross-selling and up-selling, as insurers strive to improve customer retention by selling more products to existing customers.
However, online self-service is often characterized by limited promotion, inadequate content, lack of online functionality, and poor processes.

21. Adoption of self service for policy servicing
Many insurance companies are still not aggressively promoting online self-service and therefore the rate of adoption, while growing, is still low.
Another important reason for the relatively low adoption of self-service channels is the lack of personalized approach in interactions with the customers.

22. Key Drivers for Increasing Adoption of Selfservice for Policy Servicing
Notice that it does not increase the insurance pool.
It seem to work for the captured client pool only.
How much value do we attach to these drivers for our market

23. Adoption of self service for policy servicing-Final word
online self-service provides tangible expense reduction and return on investment, as insurers can reduce costs, while improving customer satisfaction, by directing customers to the web, freeing phone lines to shorten wait times and providing fast online alternatives for customers who prefer self-service.

24. Adoption of self service for policy servicing-Final word
Direct and agent-based insurers are struggling to increase adoption due to an array of challenges including:
(a) The infrequency of insurance interactions;
(b) Some customers’ channel preferences;
© and limited functionality.
However, there has been increased adoption of certain selfservice activities like online bill pay which provide a solid business case for further online self-service.

25. Emerging Trends in Policy Administration and Underwriting
Closed-book operations:
Adoption of self service for policy servicing
Enhanced use of Business Intelligence analytics for underwriting
HIV underwriting

26. Trend 3: Enhanced Use of Business Intelligence and Analytics
Insurers are placing a lot of emphasis on data mastery using business intelligence (BI) to empower end users with the information required for better decision making.
Most companies do not derive maximum value from their data.
At a global level, very few insurers have aggregated and cleansed data accessible to their end users for real-time or near real-time underwriting.

27. Trend 3: Enhanced Use of Business Intelligence and Analytics
Better insights and analytics for in-depth assessment of customer behavior, better risk management, improved underwriting accuracy, and fraud detection.

28. Drivers for Enhanced Use of Business Intelligence and Analytics in Underwriting
The insurance Architecture application- IAA.
Lead time for developing new products reduced

29. Enhanced Use of Business Intelligence and Analytics-Final word
BI and analytics will significantly help life insurers speed up and control underwriting costs, while providing improved experiences to the customer and the agents.
Having more-powerful analysis capabilities will aid life insurers in risk management, improved underwriting profitability, and better customer intelligence—including customer segmentation, life stage analysis and profitability metrics
Allows insurers to have aggregated and cleansed data to analyze and respond to new business needs in real time or near real time.

30. Enhanced Use of Business Intelligence and Analytics-Final word
The quantified self, enabling insurers to create new opportunities to engage customers through the quantification of health and fitness data. Gamification, not only embedding insurance concepts in popular games such as SimCity and Farmville, but developing games to educate consumers and motivate healthier lifestyle choices. And telematics, evaluating individuals on personal driving behavior, rather than broad rating variables and hence enjoying broad support from regulators and customers- All of these will be considered under a section labeled challanges
THANK- YOU