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Inaccurate mortality risk assessment can endanger 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 risk in ways never before possible. It looks at 100% of your new policies and delivers a quick, clear and timely picture of any excess mortality risk. So Chief Underwriters, Medical Directors, Actuaries, Chief Financial Officers and those charged with enterprise risk management can better understand the mortality risk profile of their entire book of new business. This lets you take actions earlier, such as fine-tuning underwriting guidelines, making pricing adjustments and focusing underwriter training to help avoid unexpected claims and improve company profits.
Audit Focus reporting lets you see your most critical information fast. The Portfolio Overview provides an executive summary of your company’s risk concentrations by key metrics for use by senior management and enterprise risk managers, as well as with board members and reinsurers. Audit Focus spreadsheet reports efficiently capture every significant data detail from top-level analytics, down to the individual policy level including their respective MIB codes. Plus, custom decision filters let you tailor your engagement to reflect your company’s specific underwriting guidelines. Audit Focus’ unprecedented scope and depth will improve your mortality risk management capabilities, strengthen your underwriting 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 • Age Band • Face Amount • Gender • Product Type • Smoking Status • Place of Residence • Subsidiary • Distribution Channel • Sales Region • Underwriting Region • 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 Additional diagnostics are available.
6.74% 93.26% 50.02% 19.63%
Figure 3 Low-Risk / High-Risk Policies as a Percent of Total Policies
Percent High-Risk Policies by Risk Class
Monitor key metrics including high-risk by age band, face amount, risk class and others.
Track trends to monitor performance now and over time
Audit Focus lets you compare business 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.
10.92% 19.41% Total High Risk Pref Plus Preferred Standard Sub Standard
Case-level detail prioritizes high-risk cases with impairments listed.
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 Custom decision filters let you decide what’s important
We recognize that your business strategies and underwriting priorities are unique to your company. Audit Focus can be tailored to your specific underwriting guidelines to give you the information most important to your risk management decisions. Audit Focus integrates custom decision filters that let you flag those MIB 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 on mortality. Custom decision filters improve results relevancy and afford you quicker access to the information you need. Estimating mortality risk will always be challenging. Which is all the more reason to use the most advanced risk management tool available. Audit Focus relieves a great deal of the uncertainty inherent in managing risk, and lets you know whether the mortality risk you have is the risk you expected. For complete information on Audit Focus call 781.751.6330 or visit mibsolutions.com/auditfocus.
1 Provided by MIB, Inc. 2 Provided by MIB Solutions, Inc.
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 • email@example.com
MIB Solutions, Inc. is an MIB Group, Inc. company.
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