Ohio National - Demutualization

[scagnt83]

Not so sure. Reinsurers involved are saying the carriers behind some of the products are having way more mortality slippage than expected. IE: random audits finding 10% of cases being rescinded when new info found that would have caused lower rating class or even severe table ratings. Add to that record sales causing strain on expenses & surplus

Ive asked a few regionals about this with various carriers. One admitted to some "slippage". Other claimed their audits where showing strong numbers... but they also plan to strongly investigate any claim within the 2y contestable window...

I assume its a learning curve to some extent. And the amount of admin they cut down on if the whole process is automated, I would think helps the immediate bottom line a good bit.

I am a huge fan of the automated UW for the most part, so are clients. I cant see it going away anytime soon.

Also, I would think the severe table ratings that got through as Standard or better would be fairly rare unless they completely lied on the app. RX history should catch a lot of illnesses, I had one find a diabetes med they were on for 6 months 10 years ago. But for the ones who are very unhealthy and never see a doctor, its an issue. But plenty of agents would just write them at a non-med amount with multiple carriers... guess that spreads it out at least.

 

[Allen Trent]

Ive asked a few regionals about this with various carriers. One admitted to some "slippage". Other claimed their audits where showing strong numbers... but they also plan to strongly investigate any claim within the 2y contestable window...

I assume its a learning curve to some extent. And the amount of admin they cut down on if the whole process is automated, I would think helps the immediate bottom line a good bit.

I am a huge fan of the automated UW for the most part, so are clients. I cant see it going away anytime soon.

Also, I would think the severe table ratings that got through as Standard or better would be fairly rare unless they completely lied on the app. RX history should catch a lot of illnesses, I had one find a diabetes med they were on for 6 months 10 years ago. But for the ones who are very unhealthy and never see a doctor, its an issue. But plenty of agents would just write them at a non-med amount with multiple carriers... guess that spreads it out at least.

Agree, could see price increases to offset the mortality slippage.

 

[shooter]

Today I just received an email from a large IMO.

Diversify your product line.
Check out Ohio National Life and their complete
line of WL products.

I passed.