LIMRA Conference Highlights Evolution of Accelerated Underwriting in Life Insurance

At the LIMRA 2024 Life Insurance and Annuity Conference, industry experts shared insights on the growing trend of accelerated underwriting (AUW) in the life insurance sector. Panelist Rachel Eberle from Munich Re emphasized the industry’s push to expedite decision-making processes, which includes both approvals and rejections. The popularity of AUW is rising, with LIMRA data indicating a significant increase in consumer preference for this method due to its speed, simplicity, and avoidance of medical exams.

The discussion also touched on strategic priorities for insurers implementing AUW. Erin McClintock of Nationwide Financial advised focusing on one of three main goals—cost, consumer experience, or mortality protection—to effectively manage the inherent trade-offs. The panel underscored the importance of monitoring AUW programs through methods like random holdouts and post-issue analysis to minimize risks such as mortality slippage.

Artificial intelligence’s role in underwriting was another key topic, with predictions of AI continuing to replace traditional processes and enhance direct-to-consumer products. This integration demands a skilled workforce capable of managing these advanced tools. The conference also highlighted a trend toward partnerships between traditional carriers and insurtech firms, aiming to innovate and tap into new market segments.