Tapping into data for smarter underwriting
Predictive modeling with hr | ReFlex
By offering the capability to seamlessly incorporate advanced algorithms and predictive modeling techniques into hr | ReFlex, Hannover Re provides US life insurers with data-based insights for swiftly assessing applicants' risk profiles, facilitating immediate underwriting decisions.
At Hannover Re, we're at the forefront of this transformation with hr | ReFlex, our underwriting automation solution that now harnesses the power of predictive modeling to make automated underwriting smarter, faster and more efficient for US carriers.
A transformative force
As the US life insurance market evolves towards increased automation and optimized resource utilization, innovation in underwriting becomes paramount to an accelerated and minimally intrusive digital purchasing experience for insurance buyers. Integrating predictive algorithms has emerged as a key focus, driving the industry towards data driven decision-making – a path that opens doors to untapped opportunities.
From data to decisions
Predictive modeling blends data science, actuarial & underwriting expertise and plays a pivotal role in taking the automated life insurance underwriting process to the next level.
Predictive models discern patterns and correlations to assess prospective policyholders’ risk profiles. In alignment with the insurance company's risk appetite, favourable risks can be fast-tracked through the next steps of the underwriting process without exhaustive medical examinations or comprehensive manual assessments.
A clearer view of risk with hr | ReFlex
With the integration of a predictive modeling capability into hr | ReFlex, we have crafted a data-driven, multivariate tool that enhances risk selection and helps to further automate the underwriting process. Leveraging hr | ReFlex’s predictive modeling capacity enables carriers to see the same data in a completely new light.
The add-on solution bridges everyday practices, regulatory considerations and transformative technologies. It seamlessly blends and assesses standard underwriting data to create a holistic risk profile for each applicant – all in line with the imperative to ensure fairness and avoid any form of discrimination.
Unlike rule-based automated underwriting, the new hr | ReFlex feature introduces a multivariate evaluation step that mirrors the decision-making process of an experienced underwriter. It yields a nuanced and informed risk evaluation, minimizing the need for manual intervention and maximizing efficiency.
In practice, hr | ReFlex orchestrates a sequence of different steps – from data collection through the initial application questionnaire, to the integration of third-party data, to predictive modeling that enables a decision between an automated outcome or a referral to an underwriter.
hr | ReFlex in action
- Initial application questionnaire: Applicants provide essential details to inform the underwriting process.
- Integration of third-party data: Additional data sources enrich the risk assessment.
- Predictive modeling: Advanced algorithms analyze data to enhance triage decisions.
- Decision-making: hr | ReFlex determines whether an automated decision or underwriter referral is needed.
Our solution enables insurers to precisely calibrate risk selection approaches within their pricing frameworks and allows risk thresholds to be adjusted easily when necessary. Supported by hr | ReFlex's rule set, this flexibility allows insurers to tailor their approach to ensure optimal risk selection outcomes.
hr | ReFlex's predictive power propels efficiency and ensures precision
Powered by expertise, driven by collaboration
The aspirations of our clients set the course for hr | ReFlex. Seizing market opportunities and technological advancements, we are always committed to aligning its development and enhancement with specific client needs and objectives. Our team of data analytics experts, reinsurance professionals, IT specialists, and underwriters are dedicated to ensuring transparency in how hr | ReFlex’s predictive model add-on operates and arrives at decisions – including offering interested clients the opportunity to gain insight into how it shapes a clearer view of risk through a personalized test run using their historical data. This approach mirrors our collaborative spirit and underscores our clear focus on delivering solutions that not only empower our clients’ underwriting processes but also propel their success forward.
hr | ReFlex is where expertise, quality, and innovation seamlessly merge, presenting a supreme gateway to achieve excellence in underwriting automation.
If you need further information or would like to send us feedback, please feel free to get in touch.
*The information provided in this document does in no way whatsoever constitute legal, accounting, tax or other professional advice. While Hannover Rück SE has endeavoured to include in this document information it believes to be reliable, complete and up-to-date, the company does not make any representation or warranty, express or implied, as to the accuracy, completeness or updated status of such information.
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