Rethink Risk - and Redefine What’s Possible
June 24, 2015| By Stacy Varney |
L/H General Industry
The nature of risk is dynamic - it changes as quickly as the environment changes. As such, approaches to managing dynamic risk must also evolve over time. We believe the Life/Health insurance industry has not fundamentally modified its risk management approaches for years, making us vulnerable to new and creative methods that are likely to come from outside our industry.
As thought leaders and champions of our clients' success, we feel a responsibility to stimulate their thoughts about their business. After all, they provide their clients with financial protection when it's needed most, all while aiming to achieve profitable growth in a constantly evolving marketplace. Many agree that it is becoming more important than ever to find ways to innovate and differentiate in order to attract and retain customers, and remain competitive.
Here are some recent examples of how Gen Re helps Life/Health clients to think differently about risk:
- A client was challenged by the profitability of a segment of its business due to initial pricing assumptions not meeting expectations. Once the client took corrective pricing actions, lapses increased dramatically. Through the use of decision analytics, we identified the "tipping point" on rate increases. After we encouraged the implementation of a different rate increase strategy, lapses improved as did the profitability of the business.
- A client expressed interest in finding a new market opportunity to better leverage one of its distribution channels. It needed a new product concept to meet the needs of this under-served market segment. Leveraging the expertise and market intelligence of our international Gen Re colleagues, we worked with our client to develop an innovative product idea for the U.S. market, including policy language, product pricing and underwriting guidelines. To date the client has received very positive market feedback.
- A market leader in a particular product was interested in feedback on its product portfolio. The goal was to determine if product enhancements could help in maintaining market position. Despite challenges posed by the target audience, our professional research team created a unique approach for collecting information via exploratory interviews. The findings were used to develop leading edge services to differentiate this client from its competitors and maintain its position as the market leader.
- During meetings with several clients, we discovered a need for industry experience data so they could measure themselves against the market. No source for this information was readily available. Our actuarial and research teams provided a new study that explored detailed experience metrics that was used for benchmarking purposes, and helped clients better understand the drivers of their own experience.
- A client had developed a new product and experienced very successful sales. Upon our analysis of its distribution of sales, we uncovered that the majority of sales were at certain issue ages, which were not completely analyzed. Based upon our findings, the client quickly repriced the product to address the anomalies in their premium rate scale and was very appreciative of our findings.
At Gen Re, our goal is to bring more than just high quality risk capacity to our clients. We also aim to be a risk partner; to help clients' risk management approaches evolve as the life and health insurance industry evolves. We are a thought-partner with our clients to develop and implement tailor-made solutions that address risk management challenges they face. Please contact me or Joe Atamaniuk to learn more about how we can help you define what's possible.