Open collaboration among MIB members, many of whom are competitors, has been a powerful resource in our product development process. Our member’s dedication to helping create and improve solutions is not only geared towards safeguarding their own individual company’s needs, but also towards benefiting the entire industry. A case in point is the evolution of our In Force Data Solutions. Although our collective journey for this product suite started with a goal to solve the challenges associated with jumbo treaty violations, that was only the beginning. With input from our members at every step of the way, we have evolved the service to offer protection for cases at all face amounts. Read on to see how our members continue to help MIB shape these valuable tools to solve challenges for the industry.

It all started with collaboration

Over a century ago, MIB was established through a collaborative cross-industry effort to create a contributory database aimed at detecting medical misrepresentation and fraud. The resulting MIB codes have since become a staple underwriting requirement and fraud detection tool for individually underwritten life insurance policies across the US and Canada.

Knowing the amount of life insurance coverage an applicant already has in force and how much they are currently applying for are critical to financial underwriting. Much like medical histories, companies rely on the agent or applicant to fully disclose this information on their application. Historically, companies haven’t had tools available to independently verify the information provided, which creates a significant blind spot in the underwriting process, exposing companies to intentional (or unintended) omissions, and potential anti-selective behaviors. So, when the industry needed a solution, it was a natural fit for MIB to help. In 2020, MIB partnered with TAI to begin building a unique in force data vault. By collecting in force and terminated policy data from direct carriers and combining it with MIB’s IAI pending application data, our second contributory database, the MIB In Force Data Vault, was born.

An agile process

MIB follows an agile product development process that includes a continuous feedback loop with our member clients from ideation to implementation. We begin by creating a minimum viable product (MVP) that can be delivered quickly, tested in the market, validated for its value, and subsequently enhanced. By adopting this process, solutions are brought to the market much faster compared to the extended timelines required for innovation within the context of a major product launch, which can take years.

The first MVP for In Force Data Solutions was the Jumbo Report. Armed with the ceding details and the timeline of an insured’s in force policies and pending application activity, subscribers can monitor for disclosure and treaty compliance. To help bring attention to potential problems, MIB flags cases that were auto-bound when the total line in force was $50M-$65M or higher.

The carriers and reinsurers who participated in the original MVP not only provided meaningful input into the development of the product, but also helped us understand the value that the service affords. To date, at least 50 treaty violations have been reported as discovered, with one member specifically estimated saving between $8 to $9 million with the first report. I call that a successful start, but we’re not finished yet.

Evolving beyond a Jumbo Service

As previously mentioned, the introduction of the Jumbo Service was just the initial phase. Jumbo reports served as an optimal starting point, addressing a low incident, high impact problem for a targeted group of carriers who work in the high-net-worth space. By concentrating on this particular group, we began populating our data vault, refined our processes, and gained insights into the broader value that our database can provide to the industry. With the successful launch of the Jumbo Service and tangible benefits materializing, it was time to develop a new product to address a broader industry challenge.

The evolution of Total Line

Many carriers issue policies at much smaller face amounts and report greater concerns with anti-selection behavior and fraud. To help with this extensive challenge, we worked in collaboration with our MVP members to create our second product, the MIB Total Line Service.

Initially, this service consisted of Alerts provided at the time of underwriting, including pending application activity as well as all in force and terminated policy information on applicants within our database. With this combined data, underwriters have the ability to verify disclosure of policy information on applications, confirm whether the total line being pursued can be financially justified, and intervene if suspicious activity is uncovered before a policy is approved.

As our In Force Solutions portfolio has evolved, we now have an In Force Advisory Group, which includes several members of the original Jumbo MVP group as well as additional Total Line subscribing members who actively engage with us to share their experience with the service. Their feedback includes alerting us to specific scenarios where the data materially impacted cases, new underwriting guidelines being implemented as a result, requests for additional datapoints, and assistance with prioritization of enhancements. Discussions quickly turned to use cases beyond financial justification and the desire to analyze and flag concerning behavior patterns within automated workflows and/or post policy–issue (audits). As such, insights from this group have resulted in the implementation of several enhancements and the development of new data delivery options which include:

• The addition of termination dates (September 2022), company symbols (May 2023), and issue type (December 2023) to Alerts.
• Expansion of IAI pending application activity to from 120 to 180 days (May 2023).
• Removal of the minimum $150K face amount so that all coverage levels are disclosed (January 2024).
• Identification of in force data within the MIB Checking Service to support automated workflows. (To be release July 2024 to Total Line subscribers).
• The ability to review a 3-month lookback on Alert data outside of daily production via Quarterly Retrospective Reports, as incorporating a new underwriting requirement may be a pain point.

Beyond an advisory group

The In Force Advisory Group is one of many member/client groups MIB consults to enhance our products and services. While Advisory Groups play a crucial role, they are not the only voices we seek throughout the product development process.

The MIB team actively pursues input from all of our members through regular touch points. On a broader scale, we also conduct bi-annual member surveys to gather comprehensive feedback. Our in-house underwriters (such as I) make it a top priority to have regular interactions with the underwriters actively using our services every day. For me, it is often these conversations that provide the most valuable insights and keep the underwriter’s voice present during the day-to-day development process.

The power of collaboration

In an industry driven by efficiency and innovation, the power of competitive collaboration emerges as a transformative force. With more than 22 million records so far, the In Force database is already strengthening financial due diligence and fraud detection. Together with our members, we will continue to create and enhance solutions that protect businesses so ultimately, life insurance can remain affordable for all who need it.