BY

JUSTUS M MUTIGAICEA LION LIFE ASSURANCE CO.LTD

Email: Justus.mutiga@icealion.com

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LIFE UNDERWRITING CHALLENGES LIFE UNDERWRITING CHALLENGES AND POLICY HOLDER BEHAVIOURAND POLICY HOLDER BEHAVIOUR

TOPICS COVEREDTOPICS COVERED

The mobile revolutionDeath of underwriterBehavior EngineeringClaims ExperiencePolicyholders Behavior

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THE MOBILE REVOLUTIONTHE MOBILE REVOLUTION

Mobile technology and traditional insurance distribution model.

The internet and mobile devices are impacting distribution, but overall share of e-commerce sales is still low.

New technology is changing how consumers and firms interact with insurers.

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THE MOBILE REVOLUTIONTHE MOBILE REVOLUTION

New technology will eventually enable customers to arrange most of their insurance through remote digital channels.

Internet and mobile devices have their share of market share in terms of premium.

Traditional distribution channels continue to dominate but the future is technology.

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THE MOBILE REVOLUTIONTHE MOBILE REVOLUTION

Development markets have utilised technology more

Uptake of mobiles is growing at very high rates in Africa surpassing the development countries.

Micro insurance is being sold through mobiles in Tanzania, Ghana and Kenya

This trend (innovation) will continue

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MICRO INSURANCEMICRO INSURANCE

Mobile Micro insurance has spread to Asia and Latin America.

The products sold are the less complex life covers

This allows insuring of the bottom of the pyramid of wealth population.

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DEATH OF AN UNDERWRITERDEATH OF AN UNDERWRITER

In life insurance physical examinations are common and purchasing insurance takes weeks or months.

Underwriting evidence protects the insurance against adverse selection but it is deterrent to reaching under insured younger and middle income markets.

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DEATH OF AN UNDERWRITERDEATH OF AN UNDERWRITER

New technologies, smart phone apps and data driven predictive modelling solutions offer opportunities to bridge information gap.

This reduces the length of insuring and underwriting process.

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DEATH OF AN UNDERWRITERDEATH OF AN UNDERWRITER

The big data and analytics is simplifying the process.

Shrinking market for underwritten productsCompliance and privacy issues Product complexity and relevant of the

underwriting requirements.

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CURRENT COMPETITIVE ENVIRONMENT FOR THE CURRENT COMPETITIVE ENVIRONMENT FOR THE LIFE INSURANCE INDUSTRYLIFE INSURANCE INDUSTRY

Underwriting – A competitive Advantage?Lack of value and innovation, consumer’s

make their insurance purchase decisions solely on price

Value creating mechanisms – underwriting is expensive.

Partnership with health clubs and laboratories

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CURRENT COMPETITIVE ENVIRONMENT FOR THE CURRENT COMPETITIVE ENVIRONMENT FOR THE LIFE INSURANCE INDUSTRYLIFE INSURANCE INDUSTRY

People behaviours – driving, lifestyle etc.Treatment history.

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SOCIETAL AND DEMOGRAPHICSSOCIETAL AND DEMOGRAPHICS

Continued mortality improvement – HIV Mortality

Customer ExpectationsIncreased focus on Health Habits

– Exercises– Healthy eating

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BEHAVIOUR ENGINEERINGBEHAVIOUR ENGINEERING

Can Insurers induce favourable behaviour pattern from insured population.

Products with return of premium featuresDiscounts to Healthy Lifestyle IndividualsSeparation of long term and short term

behavioural elements.

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POLICYHOLDER BEHAVIOURPOLICYHOLDER BEHAVIOUR

Lapsing of policies is a policyholder behaviour– Anti-lapse strategies– Commission structure– Training– Understanding policyholders

Surrender Risk– Non disclosure

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POLICYHOLDER BEHAVIOURPOLICYHOLDER BEHAVIOUR

– More and more products are sold with policy holder optionally.

Policy loanPartial withdrawalDesign of products

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QUESTIONS

• THANK YOU

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