that identifying a history of nicotine use is still critical in life insurance risk assessment. Insurtech SaaS tools that leverage medical claims and prescription histories can help underwriters to instantly and effectively detect nicotine use. Carriers using Irix Prescription Data and Medical Data reduce the risk of missing or misclassifying smokers, tackle mortality slippage, and improve profitability while keeping applicants satisfied with a seamless and timely customer experience. Smoking’s durable impact on mortality and the high rate of relapse among people attempting to quit also call into question the common underwriting practice of rating people who may have no recent evidence of nicotine use similarly to those who have never smoked. Is it time to consider revising underwriting guidelines to more accurately reflect elevated mor - tality risk lasting far longer than a couple of years? Notes 1. CDC. Smoking and Tobacco Use. Retrieved June 18, 2024, from www. cdc.gov/tobacco/index.html. 2. CDC. Tips From Former Smokers. Retrieved June 18, 2024, from www. cdc.gov/tobacco/campaign/tips/resources/data/cigarette-smoking-in- united-states.html. 3. CDC. Lung Cancer Risk Factors. Retrieved June 24, 2024, from www. cdc.gov/lunch-cancer/risk-factors. 4.CDC. Health Effects of Cigarette Smoking. Retrieved June 25, 2024, from www.cdc.gov/tobacco/data_statistics/fact_sheets/health_effects/ effects_cig_smoking. 5. Healthline. What’s the connection between smoking and RA. Retrieved June 25, 2024, from www.healthline.com/health/ra-and- smoking#connection. 6. Babb, S., Malarcher, A., Schauer, G. et al. (January 6, 2017). Quitting Smoking Among Adults – US, 2000–2015. MMWR Morb Mortal Wkly Rep ;65:1457–1464. Retrieved June 18, 2024, from http://dx.doi. org/10.15585/mmwr.mm6552a1. 7. American Cancer Society. How To Quit Using Tobacco. Retrieved June 18, 2024, from www.cancer.org/cancer/risk-prevention/tobacco/guide- quitting-smoking.html. 8. García-Rodríguez, O., Secades-Villa, R., Flórez-Salamanca, L. et al. (October 1, 2013). Probability and Predictors of Relapse to Smoking: Results of the National Epidemiologic Survey on Alcohol and Related Conditions (NESARC). Drug Alcohol Depend .;132(3):479-85. doi: 10.1016/j.drugalcdep.2013.03.008. Epub 2013 Apr 6. PMID: 23570817; PMCID: PMC3723776. 9. CDC. Lung Cancer Risk Factors. Retrieved June 25, 2024, from www. cdc.gov/tobacco/about/benefits-of-quitting.html.
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About the Author Jenna Fariss grew up surrounded by tobacco farms. Today, she is Director and Actuary at Milliman Intel - liScript, where she helps carriers evaluate and implement insurtech innovations that add protective value and next-level risk assessment to their underwriting workflows and business strategies. In spite of her up - bringing—or perhaps because of it—Jenna is passionate about clarifying the risks associated with tobacco use. She often joins forces with reinsurers to critically assess new tools and guide clients as they adopt new technology or adapt underwriting guidelines to reflect evolving best practices, including the use of Milliman’s proprietary data to help clients better understand tobacco’s remarkably persistent impact on mortality. With 20+ years of industry experience, she brings both a high-level perspective and hands-on practical experience to any discussion of risk in life insurance.
ON THE RISK vol.40 n.3 (2024)
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