Risk Solutions

As a leading life and health reinsurer, RGA partners with insurers around the world to more effectively and profitably manage risk. In 2017, RGA applied global resources and local market knowledge to develop customized individual and group life, health, and living benefits reinsurance solutions.

From left: Lydia Lee, Executive Director, Claims, RGA Hong Kong and High Net Worth; Tina Paap, Vice President, Claims, RGA Asia Pacific; Eriko Kaneko, Associate Director, Head of Claims, RGA Japan.

Mortality Business Builds on Strength

Ending 2017 with $3.3 trillion of life reinsurance in force, RGA reaffirmed its position as an industry leader in mortality risk, the company’s primary business line. A comprehensive portfolio of mortality products included term life, whole life, universal life, joint and last survivor life, corporate-owned and bank-owned life, and underwritten annuities, among many other offerings.

Unmatched underwriting capabilities again provided a competitive advantage for RGA. Underwriting teams reviewed a company record 673,850 facultative cases worldwide in 2017, combining a vast mortality database with industry-leading expertise in risk assessment. To meet consumer demand for a more convenient insurance experience, RGA applied new sources of data to help clients accelerate the underwriting process and provide a more streamlined customer journey.

AURA® (Automated Underwriting and Risk Analysis®), RGA’s proprietary SaaS (Software as a Service) based e-underwriting platform, positioned clients to evolve with the industry, delivering a robust rules engine and predictive elements for additional insights. Innovations powered by AURA in 2017 included an electronic health records program in the U.K., a risk scoring model using claims data to help detect fraud in India, and several client-led initiatives using AURA as the supporting technology.

ASAP (Automatic Selection and Assessment Program – also powered by AURA), which delivers instant decisions online for impaired risks, completed a decision criteria enhancement in 2017, offering an option for preferred class on 10 key impairments – from elevated triglycerides to avocations such as SCUBA diving. FAC Console® (Facultative Application Console®) again enabled insurers to submit facultative applications to multiple reinsurers simultaneously, while SUP (Strategic Underwriting Program) supplemented clients’ underwriting staff as needed, reviewing 14,844 cases in the U.S. on the year.

From left, from U.S. Group Reinsurance: James Rathburn, Senior Vice President, Life, Accident, and Disability; Michelle Fallahi, Senior Vice President, Healthcare Excess; Dean Abbott, Senior Vice President, Head of U.S. Group Reinsurance; Jeff Birkholz, Senior Vice President, Operations.

Group Reinsurance Expands Platform for Growth

RGA’s group reinsurance lines support insurers with workplace and other group products, including life, disability, medical, accident, critical illness, and catastrophe coverage. RGA built on its proven capabilities in the group space in 2017 by delivering client solutions in product development, underwriting support, and value-added services.

In the U.S., ongoing price pressures in the medical market resulted in flat premiums overall compared to 2016, but excellent retention of existing clients provided a strong foundation for future growth. RGA launched Managed Care Stop Loss TurnKey Solutions, a strategic initiative designed to support clients and expand RGA’s footprint in the U.S. health reinsurance market as a complement to existing excess medical and quota share business. Employer stop loss clients benefitted from an enhanced data analytics suite of reports as well as insights shared at RGA’s third annual Stop Loss Symposium. The group team also laid the groundwork for bringing TransUnion TrueRisk® Life, already an established risk-assessment tool in the U.S. individual life market, to group clients.

RGA’s ROSE® Consulting Group, a nurse-led medical risk consulting program, saved U.S. health insurers more than $13 million in 2017 – or 12% of their reinsurance premium. The program’s broad range of publications, events, webinars, and tools to meet urgent client needs included the ROSE Opioid Use Disorder Case Management Guide, an updated high-cost drug management tool, and the 33rd Annual ROSE Conference aimed at improving healthcare outcomes and managing medical and disability claims.

RGA worked with clients worldwide to expand group reinsurance support within targeted markets, focusing primarily on worksite/voluntary solutions. To fill market gaps amid changing demographics and shifting consumer demand, group reinsurance experts applied emerging technologies, data analytics, and RGA’s extensive global resources. France joined the growing list of RGA offices to have implemented Raptor, an automated group business administration platform designed to leverage experience, expertise, and consistent risk management across business units and geographies. Globally, RGA provided insights to help advance the industry through a growing number of events, publications, and market benchmarking surveys.

From left: Nic Lempriere-Hogg, Senior Vice President, Global Underwriting Solutions; Peter Barrett, Senior Vice President, Head of Global Underwriting, Claims and Medical Support Team.

Global Health Team Gains Momentum

The Global Health team strengthened its support for health insurers worldwide in 2017 as part of RGA’s strategic initiative to advance health capabilities and capacity in select markets. Aging populations, increasing rates of chronic illnesses, and changing national healthcare policies further disrupted an already dynamic industry landscape. Digitalization – electronic health records, wearable monitors, remote treatment – continued to move health carriers from simply mitigating risk to partnering with customers in maintaining good health. To help clients optimize these market drivers, RGA invested in improved capabilities and technologies, including an enhanced data analytics function.

RGA expanded further in the Southeast Asia health market in 2017, installing additional specialist personnel, infrastructure, and resources to develop market-specific solutions for more accessible and affordable care. In Italy, a cancer reimbursement product – adapted from a similar product RGA successfully launched in Hong Kong – filled a lingering coverage gap within Italy’s universal health care system. In the Middle East, Latin America, and China, RGA continued to increase market share through local expertise and client-focused support. Global Health professionals worldwide collaborated across functions and markets to both support traditional health products and spur innovation.

U.S. individual health (long-term care) remained a significant business line for RGA and maintained a disciplined approach amid ongoing uncertainty. The team worked closely with clients to help them navigate a difficult market environment and meet the needs of aging consumers. Initiatives launched in 2017 sought to innovate long-term care product development and potentially expand into complementary product lines. 

RGA INDUSTRY INSIGHTS