Expected Mortality Slippage
Mortality slippage analysis was based on the responses of 26 survey participants who provided confusion matrix data using random hold out and post-issue APS analysis. Mortality slippage estimates based on confusion matrix data continue to be higher than assumed mortality slippage.
The average mortality slippage calculated was: Random holdouts, 17%; Post-issue APS, 14%.
It’s worth noting that mortality slippage results based on confusion matrix data vary widely from carrier to carrier, driven by the design of individual programs.
Planned Changes to AU Workflow
Approximately half (54%) of participating companies have made material change to their AU workflow over the past 12 months. The pace of change will not be slowing anytime soon, given the amount of planned AU workflow changes expected over the next two years.
The most prevalent planned changes to AU workflows in the next two years include the addition of data sources, modifications to face amounts, and modifications to algorithms.
Planned Changes to AU Workflow in Next Two Years