The Future of Our Business: Underwriting & Technology
September  2015

​On June 15, at 4:01:48pm EDT, Velogica®, SCOR’s underwriting solution for the middle market, processed its two millionth application. This notable event reaffirms our role in providing clients a point-of-sale life insurance solution for their middle market customers.

The industry’s strong interest in automated underwriting is an indicator of the future of risk selection and the need for a fast, simple approach to life insurance purchases. For many insurers, a growth strategy that incorporates a focus on serving middle market consumers with simple, affordable coverage is becoming a necessity, not an option.

Our industry has trillions of dollars in assets, yet our access to the middle market – the backbone upon which our industry was built – continues to wane. The industry’s shift toward high net worth customers has contributed to a middle market “protection gap” of an estimated $20+ trillion in unmet life insurance needs.

We face a changing paradigm today, one that challenges our industry’s relevance as financial stewards of our customers’ risk needs. Consumers of all ages and income expect us to process an application within days not weeks – and for the middle market, minutes not days. Dave Dorans, who heads our Velogica business line, examines options available to carriers looking to develop new underwriting solutions. The growing availability of electronic data and underwriting platforms is changing the way we underwrite business. But implementing such platforms is long, costly and requires constant maintenance.

In this issue Kristin Ringland discusses a growing trend of issuing high face amount policies on minors. While still relatively uncommon, the increase in such application activity since the recession raises some complex underwriting challenges.

David Wylde continues our “Preferred Perspectives” series. He presents an actuarial view of preferred risk criteria and examines how, despite seemingly liberal thresholds, our current knock-out approach has served the industry well.

As a full service reinsurer, SCOR strives to meet the needs of our clients through forwardlooking solutions to risk and capital management needs, as well as support for new business growth initiatives. For many carriers, an effective middle market strategy has become a cornerstone to their long-term growth. Let us show you how our collaboration can help your company close the protection gap in your own firm.