UNDERWRITING
Prescription for reducing pain-points
Epigenetics may help bridge the gap between traditional and accelerated underwriting practices by utilizing noninvasive saliva testing .
Jon R . Sabes , J . D ., is Chief Executive Officer of FOXO Technologies Inc ., a technology startup using the science of AI and epigenetics to reinvent the life insurance industry . He has over 25 years in life insurance innovation , finance , venture capital and business development .
According to a recent LIMRA study , the industry ’ s biggest pain-point is medical underwriting . The industry ’ s solution for relieving this pain is eliminate the need for collecting fluids with new accelerated underwriting protocols . Some carriers are also utilizing the rapid extension of accelerated underwriting for larger , more complex mortality products .
Unfortunately , the accelerated underwriting programs still require “ medical ” underwriting . An applicant may start in an accelerated underwriting program but still need a paramed , blood , or urine specimen .
Bridging the gap
A viable solution to this problem is epigenetic technology - a study of observable traits from eye color to disease , via chemical tags on the epigenome that instruct the genes on what proteins to make . By using artificial intelligence ( AI ) technology , we can recognize patterns of chemical tags that correlate to health conditions or diseases used in underwriting .
This epigenetic information may help bridge the gap between traditional and accelerated underwriting practices . Utilizing non-invasive saliva testing , epigenetics further supports or enhances accelerated underwriting programs by providing both a convenient underwriting process , as well as specific biological health data for accurate underwriting and risk classification . Researchers expect it ’ s possible that a simple saliva test could produce the type of accurate , specific health information obtained through traditional medical screening , as well as provide new risk factors not otherwise obtainable from traditional laboratory tests , or otherwise emerging from new health technologies .
Future of underwriting ?
What does this all mean for innovation and the future of underwriting ? Imagine at the time a producer or agent collects an applicant ’ s information for accelerated underwriting , they also collect a saliva sample in a spit tube . Now , the carrier gets all the information they ’ re currently using in accelerated underwriting models , plus in a matter of days they get all the detailed biological information carried in the chemical tags attached to the epigenome . No more needles , no more paramedical scheduling , no more delays or case management – and carriers get detailed information on the applicant ’ s current health status for key underwriting impairment risks . A seamless customer underwriting journey that provides carriers with excellent protective value .
In addition to potentially creating a low friction underwriting process for consumers and agents , and adding protective value to underwriting , epigenetic information may create new models of engagement with insurance customers . A consumer offering using epigenetics could provide participants the opportunity to assess the molecular impacts of their habits , provide success strategies and measure the impact of lifestyle changes while paving the way for more precise underwriting and personalized life insurance premiums . to
16 Perspectives Q3 2022