underwriting underwriting update with aig success through partnership november 2005

Download Underwriting Underwriting update with AIG Success through partnership November 2005

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  • Slide 1
  • Underwriting Underwriting update with AIG Success through partnership November 2005
  • Slide 2
  • Underwriting Update AIG process What have change Why do we rate? Hot topic new immigrant, travel, non resident, financial update How to speed the process
  • Slide 3
  • Underwriting Ontario Underwriting Team Life Product Stuart Gray, Barb Cornwall, Judi Scetta, Chantal Lacoste, Janet Nosko, Kirti Sharma, Angle Houle CI Product Luc Jodoin Policy Changes / Assurance Product Christian Ah-Kian Helene Chatelain, VP U/W & NB Serena Galea, Manager NB
  • Slide 4
  • Underwriting The process Using AIGs tools FMIS NB phone team Region Team
  • Slide 5
  • Underwriting What you need to know U/W age and amount guidelines per product Long App vs. Rapid App? Most common inquiry travel, medical Financial guidelines Income, net worth, financial questionnaire on long app Purpose, where premium are coming from, which sales concept was use
  • Slide 6
  • Underwriting What have changes and why Reinsurance change Reason why: More quota share due to high reserving and capital requirements for direct Co. Pricing rates preferred, etc Fight for market shares Less risk kept by direct Co Changes in reinsurances treaties Audits review claim review How do we now manage these changes
  • Slide 7
  • Underwriting Reinsurance issue AIG use 3 reinsurers Travel issue product, amount length of time, where. Capacity issue Shopping issue Misrepresentations issue
  • Slide 8
  • Underwriting Understanding and Explaining Mortality and Medical tests Why do we rate? Height and weight table Cholesterol table Blood profile Urine test Saliva testing Other test
  • Slide 9
  • Underwriting Rating why? Underwriting is the evaluation of medical conditions and histories that may affect the mortality or morbidity. Mortality is the relative incidence of death among a given group of people Morbidity is the relative incidence of sickness or disease among a given group of people Standard mortality is represented by 100% Additional rating indicate the degrees of the extra risk The rating needs to compensate for the anticipated increase in mortality or morbidity.
  • Slide 10
  • Underwriting Life Expectancies (75-80 basic tables) Male-Non-Smoker Age100% 200%400 30504337 50322620 65201512 Male Smoker 30443630 50262015 6517129
  • Slide 11
  • Underwriting Height and Weight table
  • Slide 12
  • Underwriting Cholesterol table
  • Slide 13
  • Underwriting Blood profile results Name, D.O.B Time collected Time last meal Hiv Glucose Fructosamine HGB A1C Bun Creatinine Alk. Phos Bili. Total SGOT (AST) SGPT (ALT) GGT (GGTP) HAA/CDT / Hep. Screen Tot. Protein Albumin Globulin Cholesterol HDL/LDL Ratio Triglycerides
  • Slide 14
  • Underwriting Urine test result Diuretics agents Cotinine Cocaine Glucose Protein Leukocyte screen Hemoglobin screen Wbc Rbc Granular cast Hyaline casts Specific gravity Temperature Creatinine Prot./creat. Ratio Adulterant tests
  • Slide 15
  • Underwriting Common problems in underwriting Diabetes Myocardial Infarction Cancer Life style travel, financial
  • Slide 16
  • Underwriting MYOCARDIAL INFARCTION NUMBER OF EPISODES CHEST PAIN SURGERY / BYPASS CURRENT CONDITION SMOKING AGE AT ONSET OTHER IMPAIRMENT ( BP, CHOL, SMOK...)
  • Slide 17
  • Underwriting Cancer Age at Onset Type / Grade Localized / Metastasis Treatment / date of last treatment Surgery Recurrence
  • Slide 18
  • Underwriting Medical Underwriting: Additional issues Repeat testing and Rechecks Smoker Non Smoker Saliva vs. Urine Travel issue Life style issue Medical reconsideration Medical Underwriting Appeals Clinical medicine vs Insurance Underwriting Privacy Issue
  • Slide 19
  • Underwriting Most common inquiry Non Resident? A Canadian Citizen living outside of Canada? Needs to have a Canadian Residence Status Paying Canadian Income Tax (T4) Residing in Canada for 183 consecutives days.
  • Slide 20
  • Underwriting Most common inquiry New immigrants (Life vs. CI) Canadian Resident Status Paramedical Blood test including Hep. B & C Financial Quest. Need to have landed status Covering letter explaining the purpose of insurance and explanation of the source of the deposits. Only Canadian assets will be considered.
  • Slide 21
  • Underwriting Most common inquiry Insurable Interest / Ownership Ownership, Beneficiary and Relationship are needed on the application. Insurable Interest must exist at uw and issue time until the policy is settled.
  • Slide 22
  • Underwriting Financial underwriting Why? Establishes need Reduces anti-selection Reduces moral hazard Reduces speculation
  • Slide 23
  • Underwriting Insurable Interest / Why ? Must be determined at the time of underwriting Purpose of the insurance? What is the financial loss if the insured dies? Does the amount make sense?
  • Slide 24
  • Underwriting How? / Communication is the key Communication between underwriter & broker & administrator Communication between underwriter & reinsurer Was FQ completed giving income and NW? Financial or medical explanation What are we trying to accomplish or achieve What are you looking for? Was the case shop elsewhere?
  • Slide 25
  • Underwriting Red flags Applicants is reluctant to provide information Large discrepancies in information provided by different sources Lack of third party verification Broker/Marketing pressure Previous bankruptcy Unable to justify the face amount on the older person
  • Slide 26
  • Underwriting How do we make it happen ! Reinsurer is taking majority of the risk 3 way relationship Set expectations Communication is the key! Presenting your case.
  • Slide 27
  • Underwriting Your best tool? To accelerate the U/W process! Did the producer provide a covering letter explaining the following: the purpose of the insurance How was the amount determined? Where is the deposit coming from? Explaining the concept use Was sales presentation made if yes is it attached to the application. Is the client aware of all requirements needed. Was a NB cover sheet submitted? Was the case sent to other carrier? What are we trying to achieve
  • Slide 28
  • Underwriting Example of a covering letter Attached are the following documents and explanation. 1.The purpose 1.The purpose is . 2.Relationship between agent and applicants is 3.Strategy overview the projected income tax liability on death is x.xx and after factoring the tax saving attributable to a x.xx on deathan amount of xxx is needed no cover the tax liability 4.Source of premium the premiums are funded by the corporation 5.Financial information financial statement attached 6.Existing life insurance coverage is xxx 7.Concurrent applications because a total of x is needed. 8.Conclusion why make sense.
  • Slide 29
  • Underwriting How to accelerate the process What needs to be submitted with the application Understanding Insurable interest borrowed life Amount of Insurance need to be justified Requirements are they ordered? Rule out anti-selection piece meal information What sales concept is being used? Rule out money laundering Presenting the case to the u/w updated info Medical cover letter Marketing / sales pressure
  • Slide 30
  • Underwriting Conclusion We promise to continue to deliver the following: A n Approachable Underwriting & NB team along with your Regional Team we are there to help you!
  • Slide 31
  • Underwriting Questions? Thank you for your business!