RGA HAS BECOME AN INDUSTRY LEADER BY PARTNERING WITH INSURERS TO HELP THEM MANAGE RISK, TAKE ADVANTAGE OF EMERGING OPPORTUNITIES, AND POSITION THEIR BUSINESSES FOR LONG-TERM SUCCESS. IN 2016, RGA PROFESSIONALS COMBINED PRACTICAL EXPERIENCE AND TECHNICAL EXPERTISE TO DEVELOP INDIVIDUAL LIFE, INDIVIDUAL LIVING BENEFITS, AND GROUP REINSURANCE SOLUTIONS FOR CLIENTS WORLDWIDE.
From left, from AURA Technologies: Brad Butler, Vice President, AURA Product Management; Patti Treis, Senior Vice President and General Manager; Michael Casale, Vice President, Client Services; Shawn Crain, Vice President, Architecture Solutions.
RGA Strengthens Core Mortality Business
RGA solidified its position as an industry leader in mortality risk in 2016, ending the year with $3.1 trillion of assumed life reinsurance in force. Reinsurance support for products including term life, whole life, universal life, joint and last survivor life, corporate-owned and bank-owned life, underwritten annuities, and many other offerings made up RGA’s comprehensive portfolio of mortality risk solutions.
Responsive, industry-leading facultative services remained an RGA hallmark as underwriters reviewed a record 659,204 facultative cases worldwide in 2016. Once again, a vast database of mortality experience and established expertise in applying that data provided valuable insights for clients. An update to RGA’s Global Underwriting Manual, for example, featured a new section on occupational risk, with 34 new job groups, a rating table with new duties-based occupation classes, and an interactive risk calculator.
ASAP (Automatic Selection and Assessment Program), which provides clients with instant decisions online on impaired risks, received its 100,000th case submission in 2016. Meanwhile, SUP (Strategic Underwriting Program) again allowed clients to supplement their underwriting staff on an as-needed basis and provided expert risk assessment for 14,620 cases in the U.S. for the year. FAC Console® (Facultative Underwriting Console®) created additional efficiencies by enabling insurers to submit facultative applications to multiple reinsurers simultaneously.
Amid changing risks, data sources, sales channels, and demands for faster turnaround, RGA increased the capabilities of AURA® (Automated Underwriting and Risk Analysis®). This proprietary e-underwriting system and rules engine equipped insurers to place more policies, capture more information, improve consistency, and reduce costs. AURA also helped power several data-driven innovations in 2016, including Dynamic Risk Selector, a pioneering accelerated underwriting solution.
Diversification Brings Success in Group Reinsurance
RGA supports clients with workplace and additional group insurance products, including life, disability, medical, accident, and critical illness, as well as catastrophe coverage. In recent years, growth in RGA’s U.S. group business was primarily driven by health reinsurance. As price pressures slowed momentum in the health market, it was RGA’s non-medical lines fueling group premium growth in 2016. Together with improved claims experience, this diversified approach produced solid results.
The worksite/voluntary market continued to be a growing area of emphasis globally. While insurers looked to manage costs, employers sought a broader range of benefit options to meet employees’ changing needs. RGA built on its proven track record by delivering client solutions in product development, underwriting support, and value-added services. In addition, applications in data analytics enabled improvements in risk management and within the underwriting process, resulting in an enhanced customer experience. RGA is focused on identifying opportunities to fill market gaps and leveraging global expertise to help insurers implement long-term solutions.
From left, from Global Accounts: Anil Sanwal, Vice President, Group Products; Dan Lyons, Vice President, Business Initiatives Leader.
RGA’s exclusive ROSE® (Reinsurance Outcomes and Service Experts) Program, a nurse-led consulting service and reinsurance-based case management consulting program, continued to serve U.S. group health clients. The ROSE program saved clients nearly $13 million in 2016, or 9% of their reinsurance premium. ROSE also published a widely circulated report identifying 183 high-cost specialty drugs. The report and accompanying management tool serve as a resource to educate and inform healthcare professionals about high-cost drugs.
The annual ROSE Conference, a three-day seminar for health and disability professionals on improving healthcare outcomes and managing claims costs, was one of many RGA events worldwide designed to advance the industry. RGA also provided new insights via seminars, publications, and dozens of market surveys to help clients benchmark processes and standards.
Global Health Team Prepares for Growth
The international health insurance landscape is evolving. In established markets, people are living longer and requiring additional coverage for chronic conditions. In emerging markets, a growing middle class seeks better, more advanced healthcare solutions. Across all geographies, consumerism has fueled demand for improved customer service and outcomes, as advances in medical technology and specialty drugs increase the cost of care. The resulting environment has placed healthcare providers and health insurers under intense pressure.
In 2016, RGA strengthened its commitment to support health insurance clients worldwide. The Global Health team expanded infrastructure, resources, and technology to better serve insurers in key markets. RGA professionals increased underwriting, actuarial, product development, and claims management capabilities to support traditional health products and bring innovative solutions to market. Offerings ranged from quota share arrangements to large claim (per person excess of loss) and volatility protection.
From left, from Global Health: Colin Weston, Claims Manager; Alan Watts, Senior Vice President, Head of Global Health; John Rutherford, Vice President and Chief Actuary.
A landmark International Private Medical Insurance (IPMI) transaction completed in December 2015 marked the largest international health transaction in RGA history. Implementation of the multi-year agreement and building the infrastructure to ensure its ongoing success took place throughout 2016. RGA is now uniquely equipped to execute additional international health transactions moving forward.
U.S. individual health (long-term care) continued to represent a small but significant business line for RGA. Despite persistently difficult market conditions, a disciplined approach enabled RGA to support sustainable products that both met the needs of aging consumers and helped insurers mitigate longevity risk.