Untangling the Risk Dynamics of Our Insurance Industry

Human beings have come so far on the back of many unique traits, and yet none contributed to it as much as our tendency to get better on a consistent basis. This tendency, in particular, has already got the world to hit upon some huge milestones, with technology appearing as a major member of the stated group. The reason why technology enjoys such an esteemed stature among people is, by and large, predicated upon its skill-set, which ushered us towards a reality that nobody could have ever imagined otherwise. Nevertheless, if we look up close for a second, it will become clear how the whole runner was also very much inspired from the way we applied those skills across a real world environment. The latter component was, in fact, what gave the creation a spectrum-wide presence, and consequentially, kickstarted a tech revolution. Of course, this revolution then went on to scale up the human experience through some outright unique avenues, but even after achieving such a monumental feat, technology will somehow continue to produce the right goods. The same has grown increasingly evident over the recent past, and assuming one new fintech-themed development shakes out just like we envision, it will only make that trend bigger and better moving forward.

LexisNexis Risk Solutions, a leading data, analytics and technology provider, has officially announced a wider availability of its latest solution named LexisNexis Risk Classifier. According to certain reports, the stated solution comes decked up with the means to optimize the supplemental group life underwriting process and basically provide insurers an outright risk score. This risk score notably corresponds to an insured’s risk profile without mandating the need to present invasive questions at any point. In practice, LexisNexis Risk Classifier aggregates long-standing data sources, including motor vehicle records, public records and credit attributes, before generating a more comprehensive brand of insights to assist underwriters in making confident and swifter decisions based on mortality risk. We already referred to how the solution delivers at your disposal a concrete risk score, but what we haven’t discussed yet is that it is also well-equipped to convey the critical context and reason codes behind the given score. Such transparency, like you can guess, goes a long way when it comes to upholding all important data privacy standards. Not just that, it also helps in conceiving responsible use of information, and ensuring that companies are following the related regulations like, let’s say, Fair Credit Reporting Act (FCRA). Next up, we need to talk about the solution’s streamlined and advanced model. This model is there primarily to reduce the need for lengthy initial interviews. Joining the same are configurable segmentation options and reason codes that should prove useful in your bid to determine specific risk classes. Having touched on some granular-level components in play here, we can now safely say that LexisNexis Risk Classifier, as a whole, is a multivariate model that uses different attributes associated to an applicant, both good and bad for mortality, to calculate the final risk score. The solution can also show relative risk mortality decreases or increases. Hence, for example, if an individual owns one or more properties, it will show a corresponding decrease in their risk quotient. Conversely, if they have a DUI on their record, it will show an increased risk proportion.

“With employees often choosing supplemental life insurance benefits to provide their families with the right coverage for their personal needs, group life insurance carriers need a more accurate risk assessment based on predictive and valuable data, and an optimized underwriting process to help deliver the best experience,” said Debra Gangelhoff, vice president and general manager of life insurance at LexisNexis Risk Solutions. “LexisNexis Risk Classifier helps equip insurers with better risk differentiation and allows consumers to navigate the supplemental life insurance enrollment more easily.”

The development brings a rather interesting follow-up to one recent survey conducted by Due.com. Basically, the survey revealed that up to 20% of applicants are likely to disengage from the process when underwriters request extra information and expand decision timelines. LexisNexis Risk Classifier solves that problem big time by completely eliminating the need for an applicant to undergo traditional underwriting requirements like revealing information about their medical tests. It does that, however, without making any sacrifices whatsoever with the accuracy of insurer’s decisions.

Founded way back in 1970, LexisNexis® Risk Solutions’ rise stems from its ability to leverage advanced analytics and help businesses and governmental entities reduce risk and make their operations more precise all in one go. The company’s excellence in what it does can be understood once you consider it is currently serving a whole range of industries, including insurance, financial services, healthcare and government etc.

“With year-end signaling the start of the busy open enrollment season that includes significant responsibilities into January 2024 for human resource professionals, health insurance representatives, and group life underwriters and actuaries, life insurers can improve their workflow with one streamlined and integrated model,” said Gangelhoff. “This can give life insurers confidence in their decisions as technological advancements continue to usher in change across the industry.”