Improvements to heart disease underwriting
People with serious medical conditions seeking protection cover are set to benefit as Munich Re overhauls its insurer's rating tool. The reinsurer said scope for insurance cover is being systematically expanded.
Munich Re Internet Risk Assessor (MIRA) combines an online interface and Munich Re's underwriting knowledge. Medical experts, underwriters and actuaries in Munich Re's Centre of Competence for Medical Risks, Research and Underwriting will track research developments, and insurance-relevant scientific knowledge will then be made available.
The idea is that this makes it possible to insure applicants presenting with pre-existing medical conditions at acceptable premiums.
Speaking at a seminar held at Munich Re's Uk offices, Dr. Karsten Filzmaier, chief medical officer at Munich Re, said, as an example, coronary artery disease (CAD) underwriting was to be overhauled.
"CAD is not a rare finding in insurance, and is increasing dramatically, especially in Eastern Europe. On the other hand, there have been significant improvements in diagnosis and treatment. This has led to a change in mortality. Survival rates have increased 10% in the last 12 years.
"We want to achieve four goals with these revisions: evidence based risk assessment - this means legal security in underwriting; ratings should reflect the individual applicant's prognosis; ratings should still be possible with limited information; and finally generating new business through re-evaluation of risk-extending both insurability and the number of standard acceptances."
Joachim Wenning, member of the Board of Management responsible for life reinsurance: "With MIRA, we are offering our clients around the world not only a professional tool to turn risk into value but also for the purposes of internal process optimisation. By making available such flexible and long-term solutions, Munich Re is giving its clients that extra edge."
