After completing my bachelor’s degree in actuarial science and applied mathematics, I, like many other graduates, had no idea what to do next. It wasn’t until I got an interview for a life underwriting internship program that I began to piece together what I might want to do for a lifelong career. Becoming an underwriter was something that I hadn’t really thought a lot about, let alone ever considered making a future out of before this.
As a reinsurance pro you know that working with data is an integral part of your role. Many of you are using either a homegrown or professional reinsurance system to process data on a daily basis to maintain and administer reinsured policies. For assumed reinsurance, when a policy gets processed and data is received from the ceding company, the system attempts to perform several actions on it that range from Renewals, Status Changes, Face Changes, Terminations and more.
But what happens when the action isn’t successfully carried out and the policy is not processed? The answer: An error occurs. BUT not to panic. Part of being a reinsurance analyst is dealing with error management. Today I’ll share with you three common errors I encounter when processing specifically within the TAI reinsurance system and how to overcome them. Regardless of what system you use, these may also be helpful to you.
Having worked with advisors for years in a sales and relationship building role, I’m quite familiar with many of the road blocks they experience regularly in the process of properly insuring their clients. Interestingly, many of these frustrations stemmed from a lack of clarity on what information underwriters look for when underwriting a client’s file and how their clients are being evaluated. The disconnect between advisors and underwriters certainly isn’t a novelty to our industry.
A question that I often hear from life insurance and reinsurance professionals is ”what happens at the end of a term life insurance product?” Well, the answer is that once it comes to an end, you may have the option to convert it to a permanent product. Converting a policy happens quite often and in reinsurance, it is important to adhere to the terms of the treaty, otherwise, it will cause a downstream impact when claim time approaches.
As a reinsurance analyst, we all struggle with administering conversions from time to time, especially in scenarios where there have been many amendments to a treaty or treaty information is difficult to identify. When I administer term conversions like these, there are three questions I typically ask myself to ensure I’m following the guidelines of the treaty. (PS – see here for a great overview of what a Reinsurance Treaty is as well as Seven Essential Components!)
Underwriting training and advanced underwriting education can come in many forms, but what better way to learn than to share knowledge in the form of discussions with peers? This is a tried and tested method for our underwriting team, and we call them Case Clinics! They can take the form of a discussion around either specific cases or generalities, and each will work.
The main goal is to share thoughts and experiences on cases or impairments and generate discussion from different perspectives. During the process, note-taking is encouraged so that at the end of the day you have a useful resource your underwriters can use to recall for future cases. A full circle experience that benefits all parties involved during and after its complete. Wondering how you can introduce Case Clinics to your team of underwriting? Get my advice below!
Data integrity is the foundation of a reinsurance analyst’s job. In a general setting, data integrity means maintaining and assuring the accuracy and consistency of data over its entire life-cycle. As it relates to the entire life insurance business operation, data integrity means ensuring there is no mistranslation of transactional data between the insureds, life insurance companies, reinsurance companies and retrocessionaires.
- Imagine having your life insurance application rejected because your stated income was not filled in correctly.
- Imagine being charged a higher insurance premium than expected because your insurance rating was not translated correctly into the life administration system.
- Imagine only receiving 10% of your stated benefits because a zero was missing at some point in time during the transmission of your information between insurance and reinsurance parties
This has been an exciting month for a couple of reasons – firstly, I joined the LOGiQ3 team as our Inside Sales Specialist and have spent this week getting to know the great group of people here. Second, there have been some exciting things going on in the insurance industry which will broaden the value offering clients have access to and also drive a more customer-centric industry. Check out a few of the major announcements that have been made below:
What do Sherlock Holmes and Reinsurance reviews have in common? At first blush this may seem like an odd comparison. Sherlock Holmes, is a fictional character famous for his “consulting” detective ways. Reinsurance reviews or audits involve some form of analysis on reinsurance business. This could include analyzing overall business performance, conducting due diligence on a new client or deal validation. So how do these two worlds collide? Well, Sherlock Holmes is known for his powers of observation and deductive reasoning which are the same traits required by those of us who perform reinsurance reviews.
Since reinsurance reviews can cover a wide range of topics depending on the scope of the review, they require different reference sections from the paper treaty. A thorough investigation, like Sherlock Holmes, involves a combination of detailed observation and detective skills to identify and find the sections needed for the type of review at hand.
In this post, I’m bringing out my inner Sherlock Holmes to walk you through three types of reviews and the sections required for a successful investigation.
So you’ve made it past the ten year mark as a company. That’s a huge accomplishment (and one we celebrated this year) considering 90% of startups fail. You are proud of what you have accomplished but you’re likely focused on the future and how to continue building on that growth and momentum. In other words, how can your business grow bigger and get better all while maintaining success. As CEO, this is a question I am tasked with every day. Of course the specific answers to this question will look different for every company but I think there are a two overarching strategies that can lead you to continued success. Find out what they are below.
Traditionally underwriters were recruited from several educational backgrounds usually related to finance, business, and other fields that could be easily associated with insurance and financial services products. Interestingly, in more recent years, insurance companies have been increasingly recruiting their underwriters from health science and applied science related backgrounds. We now find that our industry is compiled of a mix of these individuals. And, as it turns out, what we’ve learned from rolling out an underwriting education internship, a good candidate for life underwriting has a strong basis of knowledge of both the human body anatomy, diseases and disorders, AND some financial services education.
Whether you’re considering a career in life insurance or not, I’ll walk you through three types of life insurance you can apply your financial and/or health science related background to!