Munich Re and Paperless Solutions Group have teamed up to create a new risk assessment and e-application solution.
Munich Re Life US and Paperless Solutions Group (PSG), an insurtech company, have come together to create a new combined risk assessment and e-application solution for the life insurance industry. According to a statement from Munich Re, the solution brings together the power of Alitheia, the reinsurer’s risk assessment technology for life insurance underwriting, with PSG’s eValuate PLUS platform, which enables life insurers to underwrite new policies efficiently and with greater confidence.
Combining Munich Re’s Alitheia risk assessment technology with PSG’s eValuate Plus
The combined solution leverages Alitheia’s innovative technology and analytics, which enable life insurers to achieve straight-through processing (STP) rates in the range of 40 to 50%. This means the insurer can underwrite a new policy without manual intervention, thereby saving time and effort while providing better decision-making capabilities.
According to a report from Munich Re, the industry average STP (Straight-Through Processing) rate for 2022 is 21%, which means that the combined solution has the potential to create significant efficiencies in the life insurance industry.
Instant decisions and superior turnaround times
Life insurance cases that are ineligible for instant decisions via Alitheia can still benefit from superior turnaround times and approval rates, the reinsurer noted. Munich Re explained that Alitheia integrates with Munich Re Automation Solution’s Underwriter Workbench, a software application within ALLFINANZ, to support data-assisted manual underwriting.
Through this integration, over 80% of cases that are not eligible for instant decisions via Alitheia are able to be manually approved within 48 hours without delays through assisted underwriting. This speed and efficiency of the manual underwriting process will help life insurers streamline the underwriting process and free up staff resources that can be redirected to more complex cases that require closer scrutiny.
Highly adaptable solution
The combined solution is highly adaptable to different products, distribution channels, and target markets. It brings the benefits of Alitheia’s best-in-class rules, machine learning models, and data provider integrations to produce instant decisions that, according to Munich Re and PSG, enable life insurance carriers to underwrite new policies with more confidence and at a greater speed and scale, streamlining the life insurance purchasing journey.
Driving life insurance sales through a seamless seller-buyer approach
According to John Sarich, Chief Strategy Officer of PSG, “What we have created with Munich Re is a truly modern and interconnected process that has been tested by large agencies for validation and will drive life insurance sales through a seamless seller-buyer approach.” The assurance of an easy-to-use platform for buying life insurance policies is expected to encourage more customers to avail themselves of life insurance policies and bolster growth in the industry.
In conclusion, the combined solution from Munich Re and PSG is expected to be a game-changer for the life insurance industry. It aims to streamline the underwriting process and create efficiencies by reducing the manual effort required for underwriting a new policy. Additionally, the solution is easy to use and enables insurers to provide customers with an efficient and seamless purchasing process, thereby boosting new sales for the life insurance industry.