Changes in medical treatment and diagnostic pro- cedures will call for increased knowledge by the professional underwriter. Increasingly, noninvasive diagnostic tests such as ultrasound studies, nuclear magnetic resonance imaging and blood tests will be used. As diagnostic tests become more precise, the underwriter will be called on to make more defini - tive mortality determinations and placements. Price competition in the marketplace will dictate narrower mortality bands and more specific risk appraisal techniques. I doubt that the barium enema will ever become a standard diagnostic tool, but increased use will be made of blood tests, noninvasive heart and body organ tests, and biological age. Thallium stress tests will become frequent as large cases increase. Marketing and communication skills are closely related. The professional underwriter must be able to communicate with his agency force. This means increased knowledge on his part regarding pension plans, tax considerations, sophisticated financial packages, estate planning, and the usual tasks of explaining ratings and justifying requirements. Many companies are switching responsibility for the underwriting department to the marketing officer. This trend will continue as companies “search for excellence” through more responsive organizational structures. Many jokes have been made in the past about actuar - ies and their inability to communicate. We have seen this image changing. The underwriter, to survive, must be able to communicate with his/her peers and with the agency force.
The role of the female underwriter will continue to increase. She is, in my opinion, ahead of her male counterpart in the pursuit of education. She recog- nized early that education is one of the keys to future promotion and responsibility. The increasing trend to female agents also increases the need for the female professional underwriter. If the men don’t get on the ball, the females will pass them by and be heads of underwriting shops in the majority of companies. (Please don’t interpret this statement to indicate any- thing would be wrong with having women take over ... maybe it’s about time.) In short, the professional underwriter is alive, well and shows a standard mortality for the future. Chang- es will be required, however, as we approach the 21 st century. We must become proactively knowledge- able, adaptable and innovative in our job. Productivity must be increased and more attention given to cost factors. Gone are the days when we can merely look up a rating in “the book” and justify an assessment. We need to know if that assessment is still logical and what current developments may have modified the “book” solution. Mortality will continue to be an important factor in life insurance. For some years, the professional underwriter has been riding the crest of generally improving mortality and high interest rates. As these factors level off, risk selection will become more important. The properly prepared professional un- derwriter will continue to be an indispensable part of the equation.
ON THE RISK vol.40 n.3 (2024)
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