Risk assessment is one of the most important things to be considered in the life insurance industry. This single process leads to the decision of whether the insured is a beneficial customer for the organisation or not.
To make this process easy and convenient, one should take the use of life insurance software.
What does the software do?
The custom software solution takes all the parameters of insurance underwriting into consideration. Based on these parameters and the company guidelines, the system suggests the risk coverage amount for the insured.
Some of the parameters in the life insurance software are:
1. Age of insured
The age of the insured plays a major role in determining the risk associated with underwriting the policy. For example, a person who is in the 60s is more prone to die than a youngster. Hence, the risk associated with him will be more.
The underwriting software solution studies this, combines it with other medical history records shared by the insurer and determines if the policy will be issued or not and at how much risk.
2. Gender of the insured
Studies have revealed that women tend to live longer than men. Therefore, it is quite obvious that the life insurance software will prefer underwriting an insurance policy to a female than their male counterpart.
Such actions are decided by the automated software which studies the average risk for the males and females of that age group, combined with medical records and generate the risk associated with the policy.
3. Claims record
The automatic underwriting software solution also considers the claims history of the insured in the past. For a person who has constantly been in and out of the hospitals and has claimed a lot of bread from the health insurance is more risk cases for life insurance.
Naturally, the software will place such cases at a higher risk and will generate a higher premium amount.
Improve Risk Assessment by Over 29%
That is not a joke. Amity Software, with the life insurance software, can help you to improve the risk assessment and risk profiling of your underwriters by over 29%.