BISA Magazine - Quarter 1, 2017 - 23

PREDICTIVE ANALYTICS:

Is the Glass Still
'Half Empty'?
By Andrew Singer

P

redictive analytics (PA)
is absolutely critical for
making simplified-issue
permanent life insurance
viable in the bank channel,
an industry consultant told this
publication four years ago.
And that hasn't changed. As Samantha
Chow, senior analyst, Aite Group,
wrote recently, "No one wants to go
through the current [life insurance
underwriting] process, and with today's
technology it shouldn't be necessary-
especially for consumers who are
generally healthy."
Speed matters when it comes to selling
insurance. The more time people have
to reflect on their mortality, the less

likely they are to buy life insurance
protection. PA dangles the prospect
of making a decision without the
cumbersome, intrusive, dilatory bodily
fluid sampling regime (i.e., blood and
urine), long a part of the life insurance
underwriting process. PA could make
[permanent] insurance underwriting a
daily, even an immediate activity.
That is the hope, anyway.
Here's the problem: While technology
and data collection make PA viable,
privacy and fairness issues remain.
The glass is still "half empty," says
John Lucker, a principal at Deloitte
Consulting LLP, Global Advanced
Analytics & Modeling Market leader,
and a leader for Deloitte Analytics.

The picture has not changed much since
BISA Magazine interviewed Lucker four
years ago. Insurers have been slow
to embrace PA because they remain
concerned about regulators. The worry
is that they-the insurance companies-
will be seen as denying coverage
unfairly based on inaccurate data.
Will these solutions eventually be available, though-making it easier for sales
representatives to sell life insurance?
Yes, answers Aite's Chow. "It's about
technology, and having the right partnership with the right company," she
told us in a recent interview. She can
envision an FA looking up from his/her
computer screen, then turning to a customer to say something like: "No medi-

23
BISA Magazine



Table of Contents for the Digital Edition of BISA Magazine - Quarter 1, 2017

Table of Contents
BISA Magazine - Quarter 1, 2017 - Cover1
BISA Magazine - Quarter 1, 2017 - Cover2
BISA Magazine - Quarter 1, 2017 - Table of Contents
BISA Magazine - Quarter 1, 2017 - 2
BISA Magazine - Quarter 1, 2017 - 3
BISA Magazine - Quarter 1, 2017 - 4
BISA Magazine - Quarter 1, 2017 - 5
BISA Magazine - Quarter 1, 2017 - 6
BISA Magazine - Quarter 1, 2017 - 7
BISA Magazine - Quarter 1, 2017 - 8
BISA Magazine - Quarter 1, 2017 - 9
BISA Magazine - Quarter 1, 2017 - 10
BISA Magazine - Quarter 1, 2017 - 11
BISA Magazine - Quarter 1, 2017 - 12
BISA Magazine - Quarter 1, 2017 - 13
BISA Magazine - Quarter 1, 2017 - 14
BISA Magazine - Quarter 1, 2017 - 15
BISA Magazine - Quarter 1, 2017 - 16
BISA Magazine - Quarter 1, 2017 - 17
BISA Magazine - Quarter 1, 2017 - 18
BISA Magazine - Quarter 1, 2017 - 19
BISA Magazine - Quarter 1, 2017 - 20
BISA Magazine - Quarter 1, 2017 - 21
BISA Magazine - Quarter 1, 2017 - 22
BISA Magazine - Quarter 1, 2017 - 23
BISA Magazine - Quarter 1, 2017 - 24
BISA Magazine - Quarter 1, 2017 - 25
BISA Magazine - Quarter 1, 2017 - 26
BISA Magazine - Quarter 1, 2017 - 27
BISA Magazine - Quarter 1, 2017 - 28
BISA Magazine - Quarter 1, 2017 - 29
BISA Magazine - Quarter 1, 2017 - 30
BISA Magazine - Quarter 1, 2017 - 31
BISA Magazine - Quarter 1, 2017 - 32
BISA Magazine - Quarter 1, 2017 - Cover3
BISA Magazine - Quarter 1, 2017 - Cover4
https://www.nxtbook.com/nxtbooks/bisa/2017q4
https://www.nxtbook.com/nxtbooks/bisa/2017q3
https://www.nxtbook.com/nxtbooks/bisa/2017q2
https://www.nxtbook.com/nxtbooks/bisa/2017q1
https://www.nxtbook.com/nxtbooks/bisa/2016q4
https://www.nxtbook.com/nxtbooks/bisa/2016q3
https://www.nxtbook.com/nxtbooks/bisa/2016q2
https://www.nxtbook.com/nxtbooks/bisa/2016q1
https://www.nxtbook.com/nxtbooks/bisa/2015q4
https://www.nxtbook.com/nxtbooks/bisa/2015q3
https://www.nxtbook.com/nxtbooks/bisa/2015q2
https://www.nxtbook.com/nxtbooks/bisa/2015q1
https://www.nxtbook.com/nxtbooks/bisa/2014q4
https://www.nxtbook.com/nxtbooks/bisa/2014q3
https://www.nxtbook.com/nxtbooks/bisa/2014q2
https://www.nxtbook.com/nxtbooks/bisa/2014q1
https://www.nxtbookmedia.com