A Deadly Cocktail of Drinks, Drugs & Stress
Contributor: Maeve Fleming, Life Client Partner U.K. & Ireland, PartnerRe; Stuart Johnson, Head of Life Underwriting & Claims U.K. & Ireland, PartnerRe.
Actuarial risk profiles are based on general population mortality statistics and insured population claims experience. Medical underwriting identifies risks that are consistent with those risk profiles and thus delivers an appropriate and correctly priced risk portfolio – but, it can only do that if it is fully capturing all the material risk factors. Our research from the U.K. life protection market shows that lifestyle risks are a major risk factor for the under 40's, but that these risks are not adequately captured by medical underwriting. A similar study in the U.S identified a similar problem. We present the results of our study and propose improvements that would help to resolve this discrepancy.
Life & Health