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What Drives Our Business
August  2019

SCOR routinely reviews what drives our business in order to better understand how the market and client needs may be changing.

Regulatory needs
Analysis of new business pricing opportunities during the past 18 months (January 2018 through June 2019) reveals regulatory changes were cited in 40% of the Requests for Proposal. Principles based reserving (PBR) and 2017 CSO were the primary regulatory drivers, although tax reform and revised capital adequacy requirements were also mentioned.

Financial reinsurance
The next largest category was financial reinsurance. One-quarter of our deals during the past 18 months were related to surplus or capital relief, block acquisitions, retention reduction or contingent financing.

Product updates
Product updates to refresh prices, increase sales in certain cells of business, expand market share or enter new markets, represented as Market in the chart in Figure 1, accounted for 14% of the total quote requests.

Product development
Product development drove approximately 9% of new business opportunities between January 2018 through June 2019 at SCOR Global Life in North America. Quotes for these products included pricing for decreasing term, return of premium term, direct-to-consumer term, indexed universal life, secondary guarantee universal life, as well as various riders.

Perhaps most surprising in this research is the discovery that only 4% of pricing requests were related to changes in underwriting. Given the number of client discussions we have had and the numerous industry presentations and conferences focusing on modernization of the underwriting process, we were anticipating a larger share of new business to be driven by movement to accelerated or automated underwriting platforms.

Reinsurers are frequently consulted to evaluate and share in risks related to underwriting rules, age limits or face amounts, but we are more frequently also helping clients evaluate new underwriting platforms, methodologies and data sources.

The final 8% of our new business opportunities during the past 18 months are categorized as Other, which includes reinsurance pool restructures, merger and acquisition activities and reinsurer rate actions.

In addition to its traditional risk management role, SCOR has made significant investment in research and development to understand how changes in traditional underwriting impact mortality. We invite you to contact your Account Representative or me if your company is interested in learning more.