How long does it take?
MUBA transactions:- typically it takes around 8 weeks. When undertaken parallel to the financial tender it can be accommodated within the normal process. We provide weekly MI reports on progress.
MUMS projects:- There is typically fewer time restrictions. One of the options is to start with a small sample size, and then increase the sample, particularly where the initial sample shows a valuation variance.
How do we get scheme members to participate?
MorganAsh participation rates average around 80%. Even for those projects with lower participation rates, they have still all transacted.
Higher participation rates occur on schemes where Trustees have encouraged members to participate and been very much involved. We achieved 100% participation where Trustees have been actively involved. Our high participation rates are due to our friendly, polite and professional manner.
How much does it cost ?
Its free for MUBA transactions as the winning insurance company reimburses the MorganAsh fee. 97% of our MUBA transactions have completed, so there is minimal chance of the fee not being reimbursed. We work with all the medical underwriting Providers - Aviva, Partnership, Just Retirement, L&G and LV= who will reimburse your fee.
For MUMS (valuations) the cost works is around 1% of the final saving.
Is medical underwriting limited to scheme size?
Theoretically it has been been calculated that medical underwriting is ideal for schemes under 300 members. However, we have completed projects with several thousand scheme members and still delivered savings in millions of pounds. So with this in mind we have yet to establish the true limit.
How long does the medical data last?
In life insurance underwriting medical data typically has a shelf life of 6-12 months. However, this does not apply to DB pensions, as we are not worried about individual variances. Furthermore people's health rarely improves with age, so using data greater than 12 months is prudent.
Like postcode and address data, it depends on the use of the data if it is cost effective to check and refresh it. Should a refresh and update be needed this is relatively simple and cost effective to undertake, so can easily scheduled for triennial valuations.
What sample size is required?
For MUBA projects we typically aim for 80% of liabilities, but there is no right or wrong on this, and it depends on the variance in valuation and the evidence needed to support the change in valuations.
What data collection techniques are used?
MorganAsh operate a Tele-Interview service to obtain medical information from consumers. This award winning service is highly successful, and is used extensively for life insurance and annuities in the UK. The MorganAsh interview:
- Is fast
- Economical (half the price of a doctors report)
- Provides better data than the paper forms, and as good data as Doctors reports
Studies in the Life Insurance industry proved that the collection technique delivers far better information than paper forms, and just as good information as reports from doctors.
The statistical studies compared paper forms against the MorganAsh phone interviews over 1,600 cases. The MorganAsh interview delivers an incorrect decision 2% of the time, compared to 18% for forms and 6% for GPRs. Further more the MorganAsh Tel-Interview is far faster than the GPR.
As the graph shows 50% are completed within 5 days and 90% of Tele-Interview's are complete within 14 days. This is in comparison with GPR reports taking 45 days to receive 90% and not all GPRs are returned.