Is your mortality risk hiding its true nature?

RISK UNDERSTOOD
 Inaccurate mortality risk assessment can endanger
See what you’re missing.
the financial performance of any insurer. Regulators,

boards of directors and shareholders are demanding

more accountability in the way companies manage

risk. Every day, managers make decisions on product

design, pricing, underwriting and other issues

based on assumed levels of mortality risk. Yet, even

with years of expertise, an array of sophisticated

underwriting tools, and increasingly accurate actuarial

data, additional mortality risk in newly issued business

can go undetected. Quite often, the first indication of

accumulations of adverse mortality risk is excess,

early duration claims – until now.

Audit Focus lets you see and understand mortality Audit Focus reporting lets you see your most

risk in ways never before possible. It looks at 100% critical information fast. The Portfolio Overview

of your new policies and delivers a quick, clear and provides an executive summary of your company’s

timely picture of any excess mortality risk. So Chief risk concentrations by key metrics for use by senior

Underwriters, Medical Directors, Actuaries, Chief management and enterprise risk managers, as

Financial Officers and those charged with enterprise well as with board members and reinsurers. Audit

risk management can better understand the mortality Focus spreadsheet reports efficiently capture every

risk profile of their entire book of new business. significant data detail from top-level analytics, down

This lets you take actions earlier, such as fine-tuning to the individual policy level including their respective

underwriting guidelines, making pricing adjustments MIB codes. Plus, custom decision filters let you tailor

and focusing underwriter training to help avoid your engagement to reflect your company’s specific

unexpected claims and improve company profits. underwriting guidelines. Audit Focus’ unprecedented

scope and depth will improve your mortality risk

management capabilities, strengthen your under-

writing audits and clarify how your underwriting

process is performing.
The Myth of Random sampling
Simply put, random sampling leaves a lot to be desired. Whether you’re auditing a block of 10,000 or
100,000 policies, a traditional audit of 2% does not provide an accurate picture of mortality risk. It’s difficult
feeling confident about a book of business when 98% of its policies remain unviewed and still may harbor
an unexpected level of adverse risk.

Expect nothing less than 100%

Audit Focus reviews all of your newly issued policies against the MIB database – the largest, most
comprehensive medical impairment resource in the industry – and highlights those cases outside of your risk
tolerances. It presents a high-level picture of business quality from a mortality risk standpoint so you can
quickly spot unexpected risk and risk concentrations that might otherwise go undetected.

With Audit Focus, you’ll have the information you need to make more timely management decisions,
rather than reacting when claims turn out to be greater than anticipated. Audit Focus provides you with
an unbiased, consistent metric so you can systematically analyze mortality risk over time to better control,
manage and monitor risk. It’s an indispensable capability for managers who prefer to act quickly, decisively
and confidently.
See deep below the surface
Audit Focus’ comprehensive perspective lets you confirm that mortality risk is being accepted
on the basis upon which it was intended. Its Mortality Risk Assessment Engine spots high-risk
cases deep below the surface. High-risk are those cases with the most
complex medical profiles that may be underwritten in more than one risk
class, and those that may have been issued in a risk class unsupported
by the underling mortality risk.

With its unprecedented analytics and customizable parameters, you can

tailor Audit Focus reports to quickly see the risk concentrations that are
most relevant to your operation. Choose from:
• Risk Class • Place of Residence
• Age Band • Subsidiary
• Face Amount • Distribution Channel
• Gender • Sales Region
• Product Type • Underwriting Region
• Smoking Status • Underwriter

Audit Focus reports on high-risk cases down to the individual policy level.
A big picture window
for executives
The Audit Focus Portfolio Overview provides
an executive summary that guides you
through your most significant findings.

It reports on:
• the frequency and distribution of
high-risk cases
• areas of risk concentration
• impairment prevalence
• the distribution of dollars at risk
Figure 3 Low-Risk / High-Risk Policies as a Percent High-Risk Policies
Percent of Total Policies by Risk Class
50.02%
19.63%
Monitor key metrics including high-risk
by age band, face amount, risk class
and others.

6.74%
Additional diagnostics are available. 93.26%

10.92%
Track trends to monitor
performance now and 19.41%

over time Total High Risk Pref Plus Preferred Standard Sub Standard

Audit Focus lets you compare business

Case-level detail prioritizes high-risk cases with impairments listed.
performance within a single engagement by
subsidiary company, risk class, underwriting
region and other metrics.

And, Audit Focus lets you trend results

over time, so you can monitor how well
performance is meeting your standards.
Periodic Audit Focus engagements can be
especially helpful in treaty negotiations.
Audit Focus lets you quickly see where risk is concentrated.

A cornerstone
of the industry
For more than a century, MIB has been the
premier provider of fraud detection information
for individually underwritten life, health, disability,
long-term care and critical illness insurance1.
For more than two decades, the Society of
Actuaries has relied on MIB to provide actuarial
analytics for an industry-wide perspective on
mortality and experience studies2.

Renewed confidence
for managing risk
Estimating mortality risk will always be
Custom decision filters let you decide what’s challenging. Which is all the more reason to
important
use the most advanced risk management
We recognize that your business strategies and underwriting priorities are unique tool available. Audit Focus relieves a great deal
to your company. Audit Focus can be tailored to your specific underwriting guidelines
of the uncertainty inherent in managing risk,
to give you the information most important to your risk management decisions.
and lets you know whether the mortality risk
Audit Focus integrates custom decision filters that let you flag those MIB you have is the risk you expected.
codes that, based on your guidelines, would exclude a policy from a specific risk
class. Another filter lets you eliminate those MIB codes that have a benign impact For complete information on Audit Focus call

on mortality. Custom decision filters improve results relevancy and afford you 781.751.6330 or visit mibsolutions.com/auditfocus.
quicker access to the information you need.

1 Provided by MIB, Inc.

2 Provided by MIB Solutions, Inc.
 RISK UNDERSTOOD

Audit Focus is provided exclusively to members of MIB Group, Inc. for assessing and managing
their life underwriting risk and not to determine the eligibility of individuals for insurance or
benefits. Audit Focus reports are only generated on recently issued policies for which applicants
authorized the use of MIB, Inc.’s fraud detection service known as the “MIB Checking Service.”

50 Braintree Hill Park, Suite 400 • Braintree, MA 02184-8734 • 781.751.6330

www.mibsolutions.com • info@mibsolutions.com MIB Solutions, Inc. is an MIB Group, Inc. company.