An advanced supplemental group life insurance solution offers faster and more accurate risk profiles to help individuals seeking supplemental life insurance coverage.
LexisNexis Risk Solutions, a leading provider of data, analytics and technology, announced the availability of the LexisNexis Risk Classifier for the supplemental group life insurance market. The advanced solution streamlines the supplementary group life insurance process, providing insurers with a risk assessment that matches the insured’s risk profile rather than invasive requirements, making the application process easier and faster to ensure more consumers have access to the life insurance they need.
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The LexisNexis Risk Classifier aggregates long-standing data sources, including motor vehicle records, public records and credit attributes, to provide additional information to help insurers make confident and faster decisions based on mortality risk. In addition to providing a single result in real time, the predictive model provides the critical context and reason codes behind the result. In today’s world where data privacy is so critical, LexisNexis Risk Solutions maintains data privacy standards and responsible use of information as a top priority, such as compliance with the Fair Credit Reporting Act (FCRA) governance, helping to ensuring that users have the transparency they need about their personal information.
Insurers can use the Risk Classifier to make a more accurate risk assessment and eliminate the need for an applicant to undergo traditional underwriting requirements such as medical tests, helping to reduce applicant frustration and drop-off rates. According to Due.com, up to 20% of applicants have been known to abandon the process when insurers require additional requirements and extend decision deadlines.
“As employees often choose supplemental life insurance benefits to provide their families with the right coverage for their personal needs, group life insurance carriers need more accurate risk assessment based on predictive and valuable data and an optimized underwriting process , to help deliver the best experience,” I said Debra Gangelhoff, vice president and general manager, life insurance, LexisNexis Risk Solutions. “LexisNexis Risk Classifier helps insurers provide better risk differentiation and allows consumers to more easily navigate the enrollment of supplemental life insurance.”
Key features of the LexisNexis Risk Classifier include industry-leading datasets, a streamlined and advanced model to reduce the need for lengthy initial interviews, and configurable segmentation options and reason codes for assigning risk classes. The LexisNexis Risk Classifier is a multivariate model that uses various attributes associated with a candidate that are both good and bad for mortality to calculate a risk score. When we consider the attributes one by one, the solution shows a reduction in the relative risk of death, for example, by 39% if an individual owns one or more properties, or the risk is more than 2.5 times higher when an individual has a DUIi.
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“As the end of the year signals the start of a busy open enrollment season that includes significant responsibilities in January 2024 for HR professionals, health insurance representatives and group underwriters and actuaries, life insurers can improve their workflow with one streamlined and integrated model,” said Gangelhoff. “This can give life insurers confidence in their decisions as technological advances continue to bring changes to the industry.”
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