Jumbo limit breaches present major challenges across the insurance industry, creating costly risks and exposing teams to high-value fraud. An article on this challenge offering a new solution was published in On the Risk Magazine. It was based on a conversation with industry leaders, including Tom Freitas, retired CEO of TAI; Chris Noyes, Vice President of Business Development for U.S. Mortality Markets at RGA; Trey Reynolds, Executive Vice President, Strategy and New Business Development at MIB; Jordan Carreira, Chief Underwriter at Lincoln Financial; and John Valickus, Deputy Chief Underwriter at Lincoln Financial. Read the full article here..
Most jumbo policy violations result from industry blind spots that make verifying the in force and pending coverage of applicants challenging. In most cases, insurance providers only find out years (or decades) later that a violation occurred. These violations cost the industry hundreds of millions each year.
Collaborating to mitigate risks
TAI and MIB have collaborated to deliver innovative data solutions to mitigate these risks. Developed in partnership, MIB Jumbo Service is a tool that can make verification efficient and affordable through an in force data vault.
RGAX developed the concept to determine if TAI data could be used to add value back to the industry. MIB was an ideal partner – with strong connections, a contributory database, and Fair Credit Reporting Act (FCRA) compliance. With an impressive dataset, MIB Jumbo Service delivers real-time data, provides more control for carriers, and offers a game-changing way to catch violations before they’re too late to contest.
Driving cooperation and providing value
The tool has strong momentum and will become more effective as more industry players participate. With a focus on providing value to consumers and driving cooperation, it’s expected to generate savings of more than 10 times the cost of the tool.
Up next is MIB and TAI’s plan to shift focus from jumbo cases to all cases and continue to leverage the timely, quality data at their disposal to develop more useful industry tools. “If the industry continues to come together like this, we can transform the way we do business,” Chris Noyes noted. This “coopetition” era for the industry promises to put innovation first for the benefit of all.
Continuing to solve industry challenges
The TAI team is excited to carry this great initiative forward and to continue identifying industry challenges that can be overcome with data and technology. Through data-driven innovation, we can elevate the efforts and impact of the insurance industry.
Learn more about the MIB Jumbo Service and read the full article here.