HIGHLIGHTS OF THE TWIN CITIES ASSOCIATION OF HOME OFFICE UNDERWRITERS 2024 SPRING CONFERENCE
Anne Bunkers, Certified FALU Executive U/W Consultant Prudential Minneapolis, MN anne.bunkers@prudential.com
Tracy Sundstrom, FALU Executive U/W Consultant Prudential Minneapolis, MN
The Twin Cities Association of Home Office Under - writers (TCAHOU) 2024 Spring Seminar was held at Surly Brewing Company in Minneapolis on May 16. The seminar offered a choice of half- or full-day programming. TCAHOU 2023-2024 President Mike Hesse wel - comed everyone and shared a reminder to make sure their contact information is correct (www.tcahou. com ) for the directory. He recognized the Program and Past President Committees and introduced new members. New officers were confirmed, with Lori Walker elected as the 2024-2025 President. The first session was “An Overview of Current and Evolving Underwriting Data Sources and Lifestyle- Based Models,” presented by Tammy Marlotte, VP UW Innovations, and Blake Cory, VP UW Research and Risk Evaluation, at SCOR Global Life Americas. Underwriters have more data at their fingertips than ever before; how can they use it all to make smart and sound decisions? This session covered six data sources, focusing on the opportunities and challenges associated with each. Of course, the data from each tool must always be viewed in the framework of “Does this make sense?” • RX scoring can help predict mortality using prescription history. These tools can be particu- larly effective at identifying high mortality risk at earlier durations and when there is little other medical data. • Medical billing codes/diagnostic codes are very helpful investigative tools that are especially use- ful in locating the most critical medical sources. Underwriters must always keep in mind that medical billing codes for procedures point to potential diagnoses and may appear misleading (Example: Colon cancer coded to obtain clear -
ance for a diagnostic colonoscopy, which may not have resulted in a colon cancer diagnosis). • APS/EHR summarization tools can streamline operations and enhance decision making. Some use generative AI, which can quickly highlight the most recent/critical information for the underwriter, including vitals, diagnoses and medications. • Identity verification and compliance checks help underwriters to KYC: Know Your Customer. ID verification tools enhance the application process by instantly validating key applicant details prior to incurring additional underwriting expenses. AML tools help complete common compliance needs. These tools are an excellent investment up front as once integrated into company systems, they are a very low-cost source of information. Use of these tools helps to prevent fraud and ensure the underwriter pursues information on the correct proposed insured. • Financial and behavioral risk scores (including credit histories, MVRs, criminal record checks, etc.) are all indicators which provide valuable insights into general risk, financial stability and personal responsibility. The use of this data may be impacted by state legislation, so each company must have its internal legal department ensure compliance. • Other non-medical tools (including MIB, Plan F, insurance activity, specialty databases, etc.), which look at prior insurance behavior and the data collected through those applications, can help lend insight into the client. Public and spe- cialty database information about businesses, property ownership, occupational risk, avoca- tion licenses, etc., can also help shape the UW assessment.
ON THE RISK vol.40 n.3 (2024)
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