Technologies supporting automated underwriting processes are gathering momentum in the United States. New data-driven methodologies have emerged, and insurers have begun to sell insurance to the middle class, a group that has been underserved by insurers focused on selling to high-net-worth individuals.
The solutions, which have been evolving since the 1990s and have been used widely in the United Kingdom, South Africa and Australia, have been tracked by consulting firm Aite Group LLC, which published a report on the subject that provides an overview of automated underwriting platforms available in worldwide life insurance markets.
Based on roughly 25 Aite Group conversations with solution providers and their clients, as well as other industry participants, the report also provides insight into the trends driving the adoption of automated underwriting platforms.
Aite Group qualifies automated underwriting as the life insurance equivalent of straight-through processing: automated final decisions on insurance applications without intervention by a live underwriter.
Full Article…
Hedging its bets, Hartford Financial Services Group Inc. plans to increase life insurance sales by focusing on developing relationships with independent financial advisers, as opposed to the big-bank channel.
Historically, the Connecticut insurer has developed most of its life insurance business through “megabanks,” said Brian D. Murphy, an executive vice president in its individual life division, but sales through these companies have fallen in recent years.
“In the life insurance space, sales through financial institutions really only accounts for about 10%,” he said. “The independent space is really the blue ocean.
Full Article…
Increasing their deductibles is one way consumers can trim their insurance premiums.
Another approach may be to strengthen their credit score. Many insurers turn to this piece of information as a sign of consumers’ financial stability, which could reflect in the number of claims they file for property damage, auto accidents or medical incidents.
For years, the Federal Trade Commission has been involved in efforts to increase consumers’ understanding of these scores. Through the Fair and Accurate Credit Transactions Act of 2003, the commission defended their right to purchase scores and to request a free score from a mortgage lender while applying for a loan.
Full Article…
One provision in the recent healthcare reform bill preventing insurers from denying children with pre-existing conditions will not go into effect until six months after the bill?s recent passage.
This may be too late for one Texas infant, according to a recent report by ABC News. Houston Tracy was born with a rare disease preventing oxygen from properly entering his blood.
The infant?s parents appealed to one major health insurance provider, and were denied on March 24 – the day after the Patient Protection and Affordable Care Act was signed by President Barack Obama. A spokesperson for the insurer, which covers Houston?s two siblings, explained the situation via email.
Full Article…
Citing budgetary concerns, Senator Tom Coburn recently blocked the passage of a bill that would extend the National Flood Insurance Program through the end of 2010.
The program, scheduled to expire on March 28, will lapse until Congress returns from vacation on April 12. During that period, NFIP, which is operated by the Federal Emergency Management Agency, will not be able to issue or renew policies.
In addition to inconveniencing homeowners, the impasse could prevent real estate transactions from closing, according to a recent report by InsuranceJournal. Those who already had insurance were not affected by the lapse.
Full Article…
Bluestone Wealth management has been selected by Transamerica as its general agency offering its financial serices and products. The agreement will allow Bluestone to underwrite Transamerica’s insurance product line and was selected by Transamerica, in part, because of its existing charitable gifting programs and proprietary trust structures that are well aligned with Transamerica products.
(1888PressRelease) March 27, 2010 – Bluestone Wealth Management, a subsidiary of Bluestone America, Inc., has been appointed as a General Agency for Transamerica to offer its insurance and financial products and services.
Full Article…
Recent health care reform has eliminated price barriers faced by consumers with pre-existing conditions.
It may also serve to benefit people with chronic pain, according to a recent release by the American Academy of Pain Medicine. The organization pointed to Section 4305 in the legislation, which provides funding to increase education and establish action plans for research about the condition.
“This legislation provides the necessary components for physicians to help our patients who are living with compromised lifestyles because of the chronic pain they face each day,” said Perry Fine, president-elect of AAPM.
Full Article…
As insurance and real estate agents and homeowners feared, Congress left Washington without extending the federal flood insurance program.
Congress adjourned until April 12 after failing to agree on an unemployment benefits bill that included a provision with an extension of the National Flood Insurance Program.
As a result, the federal flood insurance program’s authority to write new policies ends on Sunday, March 28 at midnight. After that time, insurance agents will not be able to provide new or renewal flood insurance policies, which are required by lenders to close on some real estate sales.
Advertisement
Senator Tom Coburn, R- Okla., blocked the Senate from voting on the bill to extend the jobless benefits arguing that to do so would add to the deficit.
Full Article…