Over the past year, SCOR staff members, including our senior management team, have met with clients on a number of occasions at client offices, industry conferences or our facilities in Charlotte and Kansas City. We value these times to get firsthand information on your business and the challenges and opportunities you face.
In reflecting on conversations with clients, a number of recurring themes stand out. These themes, to a large extent, reflect what we are focusing on at SCOR in order to best serve
the needs of your company so you can meet the needs of your customers.
Accelerated Underwriting (AU)
AU programs are underway at a significant number of our client companies. They run the gamut from changing age/amount limits on existing products to developing non-med underwriting programs built around new data tools, algorithms and predictive modeling.
Reinsurers on Board with AU
Reinsurers are supporting AU programs by:
- assuming new underwriting risks
- assisting in the development of AU programs
- helping clients evaluate new tools, especially as they impact mortality risk.
Product Development Trends
Simplified issue products are on the rise, which are well suited to:
- new underwriting approaches
- new distribution
- middle market and millennial buyers.
Other activity involves living benefits riders, combo LTC/Life products, index options on whole life products and adjustments to IUL products due to new fiduciary rules.
Term Life Repricing
Term products are the first ones being repriced based on the 2017 CSO Table. Companies also are repricing term for non-med features, adjusting post level term premiums and repricing conversion rates.
Multi-line carriers focused on increasing life sales via P-C distribution. AU and SI are key strategies for growth in these channels.
Principle-Based Reserves (PBR)
Delay, delay, delay. Companies are not rushing into PBR because there are too many unanswered questions. Most are waiting to let reserving rules emerge. At this point smaller carriers are not interested in using the small company exemptions but plan to set
their own mortality assumptions, for which they will likely need support.
A number of companies are developing e-apps to make the application process easier for producers and to capture more data electronically.
We see continued growing interest in exploring the transfer of longevity risk associated with annuities/structured solutions.
IT, actuarial, underwriting and data specialist resources are being stretched due to coinciding initiatives related to business development, back office initiatives and changes
required by new regulations. A number of carriers are developing customer- (vs. policy-) centric administration systems.