The evidence-based underwriting system
Underwriting is all about using experience to take critical decisions in a highly complex environment. RISK-CONSULTING’s underwriting system AktuarMed® pulls on the power of hundreds of millions of years of medical evidence and allows the insurer to generate an easy-to-execute, statistically driven underwriting decision. With the help of advanced mathematics AktuarMed® calculates the excess risk of a person with any constellation of previous medical conditions who is applying for any product in life, health and personal accident insurance.
The system also takes into account the interactions between different pre-existing medical conditions and maps the future health risk of the applicant to the specific coverage. AktuarMed® is completed by a rule module in which the insurer can configure it’s specific underwriting strategy. The success story of AktuarMed® started already in the 1990’s – today the system is the market leader in health underwriting in Germany, Austria and Luxemburg, and underwrites life and health products across a range of European countries.
Advantages of using AktuarMed®
- Evidence-based risk assessment using multivariate statistics
- Risk loadings correspond to the real excess risk
- Uniform and consistent risk policy
- Significant acceleration of the application process through fewer queries and inquiries to the doctor
- Lower costs through greater automation
- Fair and transparent assessment of applicants
- Plausible results through a detailed risk profile
- Reproducibility of the evaluation results
Dynamic Underwriting in Life and Health Insurance
Combining AktuarMed® and CDE®
Why do applicants have to answer dozens of medical questions during an application, wait days or weeks for a reply and often need to answer even more questions, or supply reports from their medical practitioners? RISK-CONSULTING implemented a new approach where the applicant is led through an interactive digital question dialogue in which no unnecessary questions are asked and an immediate underwriting decision is taken. Big Data and advanced Data Analytics allow the optimization of the process and the generation of underwriting decisions based on hundreds of millions of years of medical evidence, far more than a human underwriter can ever access.
The new process is not designed to eliminate human underwriting at all but it will mean that underwriters only need to look at applications which really merit their intervention. Thus, the insurer is able to deliver a binding quote including policy documentation which only takes minutes for more than 90% of the applications. The first step of collecting the medical history of the applicant is performed by RISK-CONSULTING’s award-winning tool for context-sensitive diagnosis exploration CDE®. CDE® then passes the application data to RISK-CONSULTING’s evidence-based underwriting system AktuarMed® which performs the risk assessment.