LexisNexis Risk Classifier Available for Supplemental Group Life Insurance

The solution speeds the supplemental group life underwriting process with a risk score corresponding to an insured’s risk profile rather than invasive requirements. 

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LexisNexis Risk Solutions (Atlanta), a data, analytics and technology provider, has announced the availability of LexisNexis Risk Classifier for the supplemental group life insurance market. The solution optimizes the supplemental group life underwriting process, providing insurers with a risk score that corresponds to an insured’s risk profile rather than invasive requirements, making the application process easier and faster to help ensure more consumers can access the life insurance they need, according to a statement from the vendor.

LexisNexis Risk Classifier aggregates long-standing data sources, including motor vehicle records, public records and credit attributes, to provide added insights to assist underwriters in making confident and swifter decisions based on mortality risk, according to the vendor’s description. In addition to providing a single score in real time, the predictive model provides the critical context and reason codes behind the score. “In today’s world where data privacy is so critical, LexisNexis Risk Solutions maintains as our utmost priority data privacy standards and the responsible use of information, such as following the governance of the Fair Credit Reporting Act (FCRA), helping ensure consumers have the transparency they need into their personal information,” the LexisNexis Risk Solutions statement says.

Debra Gangelhoff, VP and General Manager, Life Insurance, LexisNexis Risk Solutions.

Underwriters can use Risk Classifier to make a more accurate risk assessment and eliminate the need for an applicant to undergo traditional underwriting requirements such as medical testing, helping to lessen applicant frustration and decreasing the dropout rate. According to Due.com, up to 20 percent of applicants are known to disengage from the process when underwriters request additional requirements and expand decision timelines.

“With employees often choosing supplemental life insurance benefits to provide their families with the right coverage for their personal needs, group life insurance carriers need a more accurate risk assessment based on predictive and valuable data, and an optimized underwriting process to help deliver the best experience,” comments Debra Gangelhoff, VP and general manager, life insurance, LexisNexis Risk Solutions. “LexisNexis Risk Classifier helps equip insurers with better risk differentiation and allows consumers to navigate the supplemental life insurance enrollment more easily.”

The vendor highlights key features of LexisNexis Risk Classifier, such as industry-leading data sets, a streamlined and advanced model to reduce the need for lengthy initial interviews, and configurable segmentation options and reason codes to determine risk classes. LexisNexis Risk Classifier is a multivariate model that uses different attributes associated to an applicant that are both good and bad for mortality to calculate the risk score. When looking at the attributes one at a time, the solution shows relative risk mortality decreases, for instance, by 39 percent if an individual owns one or more properties or the risk is more than 2.5 times higher when an individual has a DUI.

Improve Workflow with One Streamlined, Integrated Model

“With year-end signaling the start of the busy open enrollment season that includes significant responsibilities into January 2024 for human resource professionals, health insurance representatives, and group life underwriters and actuaries, life insurers can improve their workflow with one streamlined and integrated model,” adds LexisNexis Risk Solutions’ Gangelhoff. “This can give life insurers confidence in their decisions as technological advancements continue to usher in change across the industry.”

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Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at AnthODonnell@IIReporter.com or (503) 936-2803.

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