This article focuses on medical aspects of the risk selection process for long term care insurance products. Our objective is to identify for medical directors and underwriters key underwriting considerations upon which to build a sound strategy. Section 1 reviews demographic, social and other factors contributing to the need for these products. This snapshot of the long term care context sets ...

In life insurance medicine the mortality of the applicants with in the period of insurance is assessed on the basis of present risk factors or diseases. Unlike hypertension or overweight, where risk assessment of the medical values is possible directly, the risk assessment of diabetes is a complex problem. If a person is diabetic then to find out the mortality of insurer for life insurance medi...

Countrywide Loan Underwriting Expert System (CLUEZP) is an advanced, automated mortgage underwriting rule-based expert system. The system was developed to increase the production capacity and productivity of Countrywide branches, improve the consistency of underwriting, and reduce the cost of originating a loan. The system receives selected information from the loan application, credit report, ...

MetLife processes over 300,000 life insurance applications a year. Underwriting of these applications is labor intensive. Automation is difficult since they include many freeform text fields. MITA, MetLife’s Intelligent Text Analyzer, uses the Information Extraction --IE-technique of Natural Language Processing to structure the extensive text fields on a life insurance application. Knowledge en...

OBJECTIVES This study examined the information available at application for income protection insurance, to determine if any factors were predictive of a claim. The strength and significance of such factors were assessed and a predictive model was developed. BACKGROUND The factors underlying life assurance risks are well known, but this is not the case for income protection insurance. For acc...

We compare underwriting performance by commercial bank-affiliated firms (Section 20’s) and traditional investment banks over the period 1995-98. We find that gross spreads are lower in the case of Section 20 underwritings, but that yield spreads are not. Our sample includes a substantial number of observations following changes in Federal Reserve policies that substantially eased restrictions o...

Bank’s manual underwriting involves a group of underwriting inspectors, which perform a known set of procedures with the loan applications submitted by the borrowers, in order to determine the risk of providing a loan and eventually approve or disapprove it. Due to the fact that the evaluation process of applications must satisfy quality of service requirements usually set at legislator level a...

Artificial intelligence techniques have been successfully applied to the underwriting of credit risk products such as credit cards and loans, but not to the underwriting of casualty risk. Techniques in data mining and neural networks provide an efficient and effective method for creating a decision-aiding tool for underwriters. A web-based back propagation program will increase the accessibilit...