NAIC Considers Use Of Predictive Analytics In Accelerated Underwriting

The Accelerated Underwriting (A) Working Group (the "Working Group") was established at the National Association of Insurance Commissioners ("NAIC") Summer 2019 National Meeting as we reported previously.  The Working Group met by conference call on July 31, 2020 as part of the NAIC Summer 2020 National Meeting.  In the conference call, the Working Group provided an update regarding its progress with regard to its charge to consider the use of external data and data analytics in accelerated life underwriting.

The Working Group has concluded phase I of its charge, having heard presentations from various interested parties including actuarial consulting firms, the American Academy of Actuaries, life insurance companies, and the Center for Economic Justice.  Based on its phase I findings, the Working Group considers accelerated underwriting ("AU") to be favorable to insurers as well as consumers as it lowers expenses, allows for shorter time periods for issuance of