Life insurers are used to operating in a challenging environment, but today carriers often feel buffeted from different directions at the same time. A soft and lagging economic recovery has put strain both on generating new business and profitably managing inforce business. Demand for products continues to change as we see older Baby Boomers retiring, while younger Millennials expect more technology-driven interaction. Companies face increasing urgency to maximize the investments they have made in technology-enabled underwriting solutions and analytics, even as the regulatory environment remains ambiguous.
SCOR is working with our clients to understand the implications of these and other issues critical to the growth of your business and effective inforce management. Our mortality and lapse experience database allows us to move towards stochastic modeling of risk. While this modeling approach will be fundamental under a principles-based regime, we can use this power today to help our clients model potential outcomes based on proposed product or marketing changes.
We are taking great efforts to be a best-in-class source for innovative underwriting solutions. Our combination of technology, data management and underwriting expertise is helping clients profitably write business in the middle market. We have just rolled out a new, more user-friendly and robust underwriting manual to assist clients in risk assessment. Additionally our dedicated staff of underwriting researchers have projects underway to quantify how changes in underwriting criteria affect business blocks. Their research includes how alternatives to some tests for fully underwritten may affect underwriting results.
Demographic changes mean new challenges – and new opportunities. We are actively working with clients to address issues, such as end-of-level period lapse, managing longevity risk, and financing both new and existing business through efficient reinsurance mechanisms. Our commitment to reinsuring group risk remains paramount, with a dedicated staff of group professionals in Minneapolis.
Just as the insurance industry helps customers manage life’s uncertainties and plan for the future, we work with our clients to build opportunities and manage their business profitably. I welcome your thoughts on how we can work together.