1. LIFE UNDERWRITING CHALLENGES AND POLICY HOLDER BEHAVIOUR
BY JUSTUS M MUTIGA ICEA LION LIFE ASSURANCE CO.LTD

2. Policyholders Behavior
TOPICS COVERED
The mobile revolution
Death of underwriter
Behavior Engineering
Claims Experience
Policyholders Behavior

3. Mobile technology and traditional insurance distribution model.
THE MOBILE REVOLUTION
Mobile technology and traditional insurance distribution model.
The internet and mobile devices are impacting distribution, but overall share of e-commerce sales is still low.
New technology is changing how consumers and firms interact with insurers.

4. THE MOBILE REVOLUTION
New technology will eventually enable customers to arrange most of their insurance through remote digital channels.
Internet and mobile devices have their share of market share in terms of premium.
Traditional distribution channels continue to dominate but the future is technology.

5. Development markets have utilised technology more
THE MOBILE REVOLUTION
Development markets have utilised technology more
Uptake of mobiles is growing at very high rates in Africa surpassing the development countries.
Micro insurance is being sold through mobiles in Tanzania, Ghana and Kenya
This trend (innovation) will continue

6. Mobile Micro insurance has spread to Asia and Latin America.
The products sold are the less complex life covers
This allows insuring of the bottom of the pyramid of wealth population.

7. DEATH OF AN UNDERWRITER
In life insurance physical examinations are common and purchasing insurance takes weeks or months.
Underwriting evidence protects the insurance against adverse selection but it is deterrent to reaching under insured younger and middle income markets.

8. DEATH OF AN UNDERWRITER
New technologies, smart phone apps and data driven predictive modelling solutions offer opportunities to bridge information gap.
This reduces the length of insuring and underwriting process.

9. DEATH OF AN UNDERWRITER
The big data and analytics is simplifying the process.
Shrinking market for underwritten products
Compliance and privacy issues
Product complexity and relevant of the underwriting requirements.

10. CURRENT COMPETITIVE ENVIRONMENT FOR THE LIFE INSURANCE INDUSTRY
Underwriting – A competitive Advantage?
Lack of value and innovation, consumer’s make their insurance purchase decisions solely on price
Value creating mechanisms – underwriting is expensive.
Partnership with health clubs and laboratories

11. CURRENT COMPETITIVE ENVIRONMENT FOR THE LIFE INSURANCE INDUSTRY
People behaviours – driving, lifestyle etc.
Treatment history.

12. SOCIETAL AND DEMOGRAPHICS
Continued mortality improvement
HIV Mortality
Customer Expectations
Increased focus on Health Habits
Exercises
Healthy eating

13. BEHAVIOUR ENGINEERING
Can Insurers induce favourable behaviour pattern from insured population.
Products with return of premium features
Discounts to Healthy Lifestyle Individuals
Separation of long term and short term behavioural elements.

14. POLICYHOLDER BEHAVIOUR
Lapsing of policies is a policyholder behaviour
Anti-lapse strategies
Commission structure
Training
Understanding policyholders
Surrender Risk
Non disclosure

15. POLICYHOLDER BEHAVIOUR
More and more products are sold with policy holder optionally.
Policy loan
Partial withdrawal
Design of products

16. QUESTIONS
THANK YOU