Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • February 2018
02

Tech solution identified to tackle distrust of health and life insurers

Open-access content Wednesday 14th February 2018 — updated 5.50pm, Wednesday 29th April 2020

New research from Munich Re has uncovered a lack of trust of the protection industry, with a quarter of potential customers reluctant to apply for cover because they believe claims will not be paid out.

2

It was also found that 56% feel unable to accurately answer complex medical questions, and that 67% would have greater confidence in the process if their responses were somehow checked.

Despite this, the industry continues to place the disclosure burden on customers, moving away from underwriting based on medical evidence to shortening applications.

It is thought that automated underwriting based on medical evidence via electronic health records could be a solution, with 68% of potential customers saying they would be happy to share their information this way.

"It seems that as an industry we have missed how fundamental our application processes are when seeking to establish trust with our customers," Munich Re UK & Ireland life & health head of protection, Ian Davies, said.

"In 2018 we will be working with the industry to demonstrate how automated underwriting based on medical evidence on electronic health reports can deliver better customer trust and greater opportunity for the industry."

The research involved a survey of 500 people, finding that 62% believe the application length for cover is in line with their expectations, and that many would be prepared to share more information.

It concludes that improving the industry's perceived credibility will need to involve removing the disclosure responsibility from the customer while providing greater claim certainty.

For this to happen, it is thought that barriers to communication between insurers and GPs will need to be resolved in order to increase adoption of electronic health reports.

"The solution we have identified is two-pronged: greater GP engagement allowing easier access to medical records and also automated underwriting based on medical evidence," Munich Re said.

"Both of these together will lead to proposition changes that will increase policyholder trust and certainty in protection."


Sign up to our free newsletter here and receive a weekly roundup of news concerning the actuarial profession

This article appeared in our February 2018 issue of The Actuary .
Click here to view this issue

You may also be interested in...

2

One million employers sign up to pensions auto-enrolment

The Pensions Regulator (TPR) has today announced that one million employers in the UK are now automatically enrolling their staff into a workplace pension.
Tuesday 13th February 2018
Open-access content
2

Leading insurers to boost revenues by $375bn through innovation

Insurance firms that continuously innovate and adapt to changing consumer needs will outperform competitors and seize a potential $375bn (£267bn) in new revenue over the next five years.
Friday 16th February 2018
Open-access content
2

Slowdown in mortality improvements a 'trend' rather than a blip

Average mortality improvements between 2011 and 2017 were significantly lower than for any other recent six-year period, according to data from Continuous Mortality Investigation (CMI).
Thursday 1st March 2018
Open-access content
2

Auto-enrolment changes to boost pensions by nearly a third this year

Britons enrolled in a workplace pension could see their savings grow by 30% this year as a result of mandatory increases to minimum contribution levels.
Friday 2nd March 2018
Open-access content
2

Customer satisfaction with UK insurance industry declines

Customer satisfaction with insurance companies in the UK is lower now than at the beginning of last year, with the industry continuing to fall short in the way it handles complaints.
Tuesday 6th March 2018
Open-access content
2

UK identified as fifth most prepared country for driverless cars

The UK has been ranked the fifth most prepared nation for the introduction of self-driving cars, just behind the Netherlands, Singapore, the US and Sweden.
Monday 12th February 2018
Open-access content

Latest from February 2018

2

FinTech investment hits all-time high

Investment in financial technology ventures increased by 18% to hit a record high of $27.4bn (£19.9bn) in 2017, according to research by consultancy firm Accenture.
Wednesday 28th February 2018
Open-access content

IACA Call for Committee Member Nominations and Other Volunteers

The International Association of Consulting Actuaries (IACA) seeks nominations for members to serve on its Committee.
Monday 26th February 2018
Open-access content
2

Cryptocurrencies dismissed as threat to global financial stability

Digital currencies will need some form of regulation and guidance before they have the potential to significantly disrupt financial markets, according to S&P Global Ratings.
Monday 19th February 2018
Open-access content

Latest from small_opening_image

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from inline_local_link

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from 02

2

FinTech investment hits all-time high

Investment in financial technology ventures increased by 18% to hit a record high of $27.4bn (£19.9bn) in 2017, according to research by consultancy firm Accenture.
Wednesday 28th February 2018
Open-access content

IACA Call for Committee Member Nominations and Other Volunteers

The International Association of Consulting Actuaries (IACA) seeks nominations for members to serve on its Committee.
Monday 26th February 2018
Open-access content
2

Cryptocurrencies dismissed as threat to global financial stability

Digital currencies will need some form of regulation and guidance before they have the potential to significantly disrupt financial markets, according to S&P Global Ratings.
Monday 19th February 2018
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Investment Consultant

Scotland / Scotland, Edinburgh / London, England
Up to £70000.00 per annum
Reference
148689

Market Risk Capital Actuary/Quant

London (Central)
£65,000 - £115,000 plus bonus and package
Reference
148688

Experience Analysis Contractor

England
Negotiable
Reference
148687
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ