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Redefining Facultative Underwriting in the Ecosystem Era

At RGA, we seek partners who are willing to reimagine the familiar, rethink data collection methods, and refine risk assessment practices – all in the interests of bringing affordable financial protection to more people.

New data sources and technologies applied throughout the insurance process are connecting companies in new and unanticipated ways. In the area of underwriting, we have seen industry dynamics completely redefined. Insurers are taking a thorough look at how underwriting works within their businesses, determining areas that could benefit from greater support, and identifying the best partners to provide it. RGA’s U.S. underwriting team has developed a strategy to help clients navigate this new ecosystem environment, guided by these four principles:

1. Connection matters.

Established insurers, new insurtech entrants, reinsurers, and other players are sharing underwriting data, insights, and capabilities to fast-track innovation, adapt to change, and deliver more personalized customer care. Yet many insurers are held back by issues with capacity, legacy systems, and processing speed. RGA has developed an end-to-end suite of underwriting services designed to draw on our traditional facultative expertise and respond to these insurer pain points.

2. Expertise matters.

Underwriting’s ongoing transformation has not lessened the importance of the expert facultative review. In fact, RGA reviewed a record number of facultative cases in the U.S. in 2021. We are doubling down on facultative underwriting as central to our value proposition, introducing new technologies and efficiencies to the process. In 2021, we partnered with insurers to develop a market-first Precision Calculator for best-in-class risk calculation and launched a FAC Optimization solution that integrates machine learning, optical character recognition, and natural language processing technology into the facultative underwriting process.

3. Innovation is more than either/or.

When it comes to the question of innovation, the answer is not either/or; it is both/and. Facultative underwriters must be capable of both technical excellence and experimentation; of both providing rigorous case review and challenging the status quo. We believe it is time to break away from labels that can constrict the industry artificially and to redefine what “facultative” means. RGA is expanding our role within the industry ecosystem by applying underwriting expertise throughout the entire insurance process, creating a holistic portfolio of products and services to deliver greater value.

4. Partnership cannot become a platitude.

When partners look out for each others’ best interests, everybody wins. At RGA, our clients are at the center of everything we do. We have embraced a vendor-agnostic approach, allowing insurer-partners to find the right tool within the broader ecosystem to meet their specific needs. This necessitates a deep understanding of the data tools landscape and best-in-class capabilities, and a willingness to make the insurer’s success the primary goal. We provide a full range of on-demand solutions and are willing to assume the risk, but only as determined by each client.

RGA seeks partners who are willing to reimagine the familiar, rethink data collection methods, and refine risk assessment practices – all in the interests of bringing affordable financial protection to more people. The old model demands re-invention. Future success demands a meaningful, scalable, and material system of supports – an underwriting ecosystem for the future.