The Tele-Underwriting Process And Protective Value Study

Abstract

A primary objective of the study is to discuss the process of tele-underwriting and its associated benefits and costs. Tele-interviewing or tele-underwriting offers insurers an effective alternative to more traditional methds by complementing physician reports and other medical status reports, thus reducing underwriting expenses.  The telel-underwriting system involves a call center that gathers medical information through a phone interview with applicants, reducing errors associated with paper handlings. Then, a detailed statistically analysis can be performed for determining what type(s) of paramedic exams are needed. It can be an efficient system as long as the benefit of the tele-underwriting services exceeds its cost. Large insurers can have an in-house call center or small firms can use an outsourcing services of tele-underwriting. Nine out of ten customers are satisfied with the tele-underwriting services. However, each firm must consider the costs associated with the tele-underwriting system. Therefore, a cost/benefit or protective value study is essential for the success of the program.