Author: N C, 2021-07-07

NAIC Delayed Accelerated Underwriting Decision

Surprising? NAIC delayed Accelerated Underwriting decision on definitions. We previously reported on the NAIC’s move to define Accelerated Underwriting and it seems that regulators won the day. The new deadline is 2024. According to Insurance News Net, “Consumer advocates were disappointed by the delay and fought it until the final meeting. ‘Many months and hundreds of hours of work went for naught,” said Birny Birnbaum, director of the Center for Economic Justice. “With this non-action by the regulators, insurers remain unaccountable and consumers remain vulnerable to insurers’ use of big data, artificial intelligence and black box algorithms in auto and home insurance claims settlement and life insurance underwriting.'” Accelerated underwriting should make applications easier, “Accelerated underwriting, also called “express underwriting,” is making it faster and easier for people with good health and good credit to obtain life insurance. With it, consumers can get a fully underwritten, regularly priced term life insurance policy of up to several million dollars without a medical exam.” However, many are concerned about privacy and decisions based solely on data that may not be predictive long term. Follow this link to read more on why the NAIC delayed accelerated underwriting decision.