Munich Re Life US and insurtech platform Paperless Solutions Group (PSG) have teamed up to develop a new combined risk assessment and e-application solution for life insurance carriers. The new platform is set to transform the life insurance industry by allowing insurers to underwrite new policies with greater accuracy, speed, and scalability than ever before.
Features of the combined solution
The solution brings together the risk assessment and instant decision-making power of Munich Re’s Alitheia with the seamless application and point-of-sale process of PSG’s eValuate PLUS. This enables life insurance carriers to underwrite new policies faster and with greater accuracy.
Munich Re’s Alitheia uses advanced algorithms to analyze an applicant’s data in real-time, enabling the platform to provide instant decisions for eligible cases. By combining this technology with PSG’s eValuate PLUS, Munich Re is able to offer life insurers the ability to achieve straight-through processing (STP) rates in the range of 40 to 50 percent. This means a significant reduction in paperwork, improved accuracy, and faster processing speeds.
In cases where an applicant’s information is not eligible for instant decisions via Alitheia, the combined solution still offers superior turnaround times and approval rates. Over 80% of such cases can be manually approved within 48 hours through assisted underwriting. This is essential for cases where a more informed decision is required, and the ability to make such decisions within 48 hours is an excellent timeframe in which to do so.
Adaptability of the Combined Solution
One of the key benefits of the combined solution is its highly adaptable nature. It can be customized to offer different products, distribution channels, and target markets. The platform specifies Alitheia’s best-in-class rules, machine learning models, and data provider integrations in order to provide the most accurate risk assessment available and produce instant decisions.
The Munich Re and PSG combined solution enables insurance carriers to underwrite new policies with more confidence and speed than ever before. This will streamline the life insurance purchasing journey and make it easier for consumers to obtain the coverage they need. By utilizing the latest technologies, the industry can adapt to changing needs and provide better customer outcomes while efficiently managing costs.
The focus of the solution is to improve the overall underwriting process. The industry has long recognized that obtaining accurate and up-to-date information from applicants can be one of the most challenging parts of the process. The Munich Re and PSG solution aim to transform underwriting by automating many traditional steps, such as manual paperwork, which has slowed down the process in the past.
Expected Impact on the Life Insurance Industry
The Munich Re and PSG combined solution represents a significant advancement in the life insurance industry. It will reduce friction in the application process, eliminate errors, and speed up the time it takes for underwriters to obtain the essential information they need. This will encourage more people to purchase life insurance policies, improving the industry’s ability to provide protection to those who need it most.
The solution has already attracted clients and partners, including major life insurance carriers who have proven the utility of the platform. Furthermore, it is expected that the insurance industry as a whole will benefit from the improved efficiency that this collaboration will bring. By implementing new technologies and reshaping traditional processes, Munich Re and PSG have provided a clear pathway for the industry to evolve and adapt to the rapidly changing landscape of the digital age.
The Munich Re and PSG combined solution for risk assessment and e-application processing represents a significant development for the life insurance market. By combining the latest technologies, the industry can now offer faster and more accurate underwriting decisions for eligible cases. The highly adaptable platform is flexible enough to allow for customization to different products, distribution channels, and target markets. Those in the industry should take notice of this solution’s capacity for improved productivity and its significant impact on streamlining the life insurance purchasing journey. The solution is one step of many that will help protect consumers and ensure protection is readily available when needed.