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Big Data for de-risking DB Pensions

Improved risk management

Better data improves accuracy of scheme valuations

97% success rate of Bulk Annuity transactions

Completed over £1B of transactions using medical underwriting

Material changes to pension deficits

We have delivered up to 10% changes to scheme valuations



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News

Winners - Life Insurance Innovation award - November 08, 2016

"Most Innovative Actuarial / Risk Consultancy Services Provider Of The Year” The Life Insurance International awards For use of Big Data in MUMS and MUBA services The Life Insurance International awards were announced on November 17th at a Gala dinner in London ...

Contact

Our success

Johnston Press is one of the largest local and regional multimedia organisations in the UK. They provide news and information services to local and regional communities through their extensive portfolio of hundreds of publications and websites. Their titles span Scotland, the North East, West Yorkshire, the North West & Isle of Man, South Yorkshire, the South, Midlands and Northern Ireland - delivering extensive coverage of local news, events and information.

They are sponsor to their £500M pension scheme. Previous valuations had shown a deficit of around £100m. In 2015 MorganAsh undertook a MUMS analysis targeting 550 pensioners. The result of the revaluation for financial reporting was a reduction in the deficit of £50m around 10% of the total pension value. The revaluation figure has yet to be agreed with the trustees, this is ongoing.

As this was a material change to the company’s finances, it was announced to the stock market on 3rd February, and resulted in a 13% increase in the company’s share price, and coverage in the national media:- BBC,

Financial Times,

Guardian


All the scheme members (51 in total) and their spouses were invited to participate in the project. 73% participated with the Telephone interview with a further 4% preferring to complete a paper form.

Doctors' reports were obtained on 6% of scheme members in addition to the medical interviews.

The process was a great success, with 82% of liabilities being underwritten. All the medical data was shared with the participating insurers and Insurers were very happy with the data received, allowing them to offer significant discounts.

Just Retirement won the tender and completed the transaction.

“We received a good reduction from the insurers which enabled us to pursue a buy in transaction, thus de-risking our scheme.” Howard Jones, Director of Howie Group Limited and Trustee of the Howie Group Limited Staff Retirement Benefits Plan


“The MorganAsh process of contacting scheme members went very well.”

Howard Jones, Director of Howie Group Limited and Trustee of the Howie Group Limited Staff Retirement Benefits Plan —

44 Scheme Members were approached and a good participation rate resulted  in 95% of liabilities being medically underwritten.

A buy-in transaction for £12m tranche of liabilities was completed in the £60m pension scheme.

Partnership won the contract

With JLT Employee Benefits advising us, we were able to achieve a competitive price by selecting Partnership Assurance and we are pleased with how streamlined the process was.”

Graham Wardle, BESTrustees, Chairman of the Trustees

This new process for completing underwritten buy-in transactions is an important step for Schemes looking to derisk in the most cost effective way.“

David Barratt, Buyout Consultant, JLT Employee Benefits

 


“A common approach to the collection of health and lifestyle information from members will ensure that Schemes wishing to de-risk through an underwritten exercise will now have a choice of insurers and can be confident of attaining a competitive price."

Will Hale, Director of Corporate Partnerships, Partnership Assurance

A small sample size of 28% of members was selected, and from these 61% of members participated.  This resulted in 75% of the liabilities being assessed.

The results led to changes to the assumptions on mortality. The information on marital status alone led to a material difference in mortality assumptions.  Life expectancy was shown to be 1.6 years less than SAPS S1PA tables, which resulted in a reduction to the pension deficit of pensioners alone of £1.2m.  When this was adjusted for the whole scheme the reduction in pension deficit was £2.4m.

As a result of the PLUS project the scheme actuary changed the mortality assumption.


Renold the international supplier of industrial chains employs around 2,500 people in more than 23 countries around the world. The Renold’s DB pension scheme entered a buy-in to fully de-risk around 25% of its UK pensioner liabilities with Just Retirement.

The £25m medically underwritten buy-in covers just 35 members with higher annual pension incomes who represent a significant concentration of longevity risk given the scheme has around 3,500 members in total.

Under the terms of the buy-in, Just Retirement secures a quarter of the Scheme’s pensioner liabilities by insuring the benefits of the members with the highest liabilities. The insurer’s medical underwriting meant the scheme was able to secure the liabilities at a small discount to their assumed funding valuation after more than 90% of members provided medical information.

Tim Coulson, director of DB solutions at Just Retirement said:I am very pleased that we were able to support Renold and the Trustees in this step of their pension de-risking journey as they secure pension benefits for their scheme members. It is a testament to the quality of their advisers and our team that we were able to execute this ‘Top Slicing’ deal, in a short time frame and provide the client with certainty around the execution of transaction.”

Gavin Markham, Head of Bulk Annuities, Barnett Waddingham commented:We were delighted to be able to help the Trustee and Company successfully complete another significant de-risking step for the Scheme, and achieve such a good outcome for all parties including the removal of longevity risk for these members. The highly competitive terms achieved, supported by the practical approach of Just Retirement, demonstrated the potential value of medical underwriting for schemes. In our view, top-slicing deals of this nature will become an increasing feature of the market

Warwick Jones, Chairman of Trustees, Renold Pension Scheme: “Working closely with the Company, as part of the overall de-risking strategy for the Scheme, the Trustees had clear objectives for managing the risks associated with the liabilities for this group of members. Supported effectively by our advisers Barnett Waddingham and Pinsent Masons throughout the process, this buy-in transaction with Just Retirement represents an extremely positive result for all parties associated with the Scheme.”

The company said that attractive pricing terms combined with the medical underwriting process meant the scheme could secure the liabilities at a small discount to their assumed funding valuation.

The transaction has no impact on the funding level of the scheme and did not require any additional contributions from the group. Consideration for the buy-in will be sourced entirely from a portion of the scheme's index-linked UK government bonds.

The group is now fully protected from volatility in longevity, inflation and interest rates in respect of these members.

Robert Purcell, Chief executive "The buy in of 25% of current pensioner liabilities is an important step in de-risking the group's cash flows and balance sheet from the impact of volatility in pension liabilities. Re-building the group's balance sheet and closely managing our legacy pension obligations are important aspects of the group's overall strategic objective to deliver sustainable gains in shareholder value."

Barnett Waddingham advised the scheme on the agreement, for which conversations began in November 2014, and appointed MorganAsh to undertake the medical collection and tender process.


“The Company considers this transaction to be an important move in helping to manage its legacy pension obligations and the impact of volatility on its balance sheet. Attractive pricing through the use of medical underwriting allowed us to secure a material proportion of the pensioner liabilities at no additional cost, thanks to the proactive advice and commitment of Barnett Waddingham.”

Brian Tenner, Finance Director, Renold plc

MUBA - Medically Underwritten Bulk Annuities

 

We operate the central medical underwriting service for broking medically underwritten bulk annuity transactions for defined benefit pensions in the UK.
 
We work with EBCs and pension consultants to facilitate the tenders.
We provide a specific web site and video for scheme members.

 

 

"We have had great experience with the MorganAsh medical underwriting service and it is a vital component in growing the bulk annuity market." James Mullins Head of Buy-in Solutions at Hymans Robertson.
 
We have an agreed service with the five participating insurance companies in the UK: Aviva, Legal and General, Just Retirement, Partnership and LV=.
The service is FREE to the trustees as the providers will reimburse our fee when the transaction completes.

The service has already resulted in over 40 transactions being completed:
  1. Scheme members are happy to participate with participation rates averaging 80%
  2. 98% of projects have led to completed transactions
  3. Savings of up to 10% have been realised
  4. Trustees are content with the process
We have overcome the fears of the process being invasive, or scheme members not participating.

“We are seeing increasing enthusiasm amongst trustees and sponsors of moderately sized pension schemes to integrate medical underwriting into their bulk annuity purchase exercises. A coordinated and consistent approach is therefore crucial and we welcome MorganAsh's efforts to develop and refine such an approach in conjunction with a number of insurers.

Neil Rogers, Bulk annuity consultant at Mercer Limited.

Providers_Plus

 

“The overall growth in medically underwritten bulk annuity activity this year has been considerable, not surprising given the improved pricing this can bring. Effective data collation from pensioners is crucial - MorganAsh’s activity in this area can only help support further market growth.Costas Yiasoumi from Partnership.

 

“The MorganAsh PLUS service has created robust outputs that has accelerated confidence amongst consultants in the medically underwritten de-risking market. This has resulted in a significant rise in the number of consultants participating in the market during the last year.”

Tim Coulson, Director of defined benefit solutions at specialist insurer Just Retirement.

 

The receipt of high quality data is paramount in enabling us to understand the health of individuals and it ensures there is no bias in selection. The MorganAsh interview is of high quality and reliability and we are happy to price on this basis.”

Phillip Beach, Head of Core Pension Risk Transfer Business for Legal and General 

 

“Trusted and consistently high quality data, particularly data collected using trained healthcare professionals as part of a medically underwritten bulk annuity tender, is essential in giving reassurance to the Trustees and scheme members – and also in obtaining a competitive price for the client”. 

David Stewart, a Partner at Lane Clark & Peacock

 

 

MUMS - Medical Underwriting Mortality Studies

Our MUMS service provides an evidence based forecast of mortality of individuals and hence the overall longevity for the scheme, enabling improved accuracy for scheme valuations.

Companies, trustees and advisers benefit in multiple ways:

  1. Provides evidence based improved accuracy scheme longevity valuations
  2. Resolves valuation arguments
  3. Prepares for future buy in/out transactions
  4. Improves risk management, notably for Solvency II
  5. Assists negotiations for funding requirements
  6. Facilitates M&A activity.

We have assessed over £1Billion of pension assets for small and large schemes.

This method has been shown to alter longevity assumptions significantly and can dramatically reduce reserves required for pension schemes by millions. The cost of implementation is just 1-2% of the savings that can be realised.

The service is simple to implement, confidential and consumer friendly. To see a small video of the process have a look at our scheme member web site and video at www.morgansh.com/pension/muba

 

The Process - How it works

For a video on how the process works visit www.morganash.com/pension/muba

We use purpose built bespoke IT systems to manage all data and share with the insurance providers, thus ensuring data is secure and confidential. 

Like all processes they cater for many circumstances, but broadly the process is:

  1. Letters are sent to scheme members from the trustees explaining the process
  2. The scheme members return the forms
  3. We interview members over the phone (or send paper forms)
  4. We obtain reports from doctors where necessary
  5. We provide the information on our secure portal for the insurers to access for their tenders
  6. Tenders are submitted
  7. The winning provider reimburses MorganAsh fees.

Contracts

Trustees remain as Data Controllers

We have a standard Terms and Conditions

Compliance

MorganAsh are authorised and regulated by the FCA.

 

Q & A

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:

  1. Is fast
  2. Economical (half the price of a doctors report)
  3. 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.

Quality of data for differing collection methods

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.

TI quicker than 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.

 

 

Johnston Press is one of the largest local and regional multimedia organisations in the UK. They provide news and information services to local and regional communities through their extensive portfolio of hundreds of publications and websites. Their titles span Scotland, the North East, West Yorkshire, the North West & Isle of Man, South Yorkshire, the South, Midlands and Northern Ireland - delivering extensive coverage of local news, events and information.

They are sponsor to their £500M pension scheme. Previous valuations had shown a deficit of around £100m. In 2015 MorganAsh undertook a MUMS analysis targeting 550 pensioners. The result of the revaluation for financial reporting was a reduction in the deficit of £50m around 10% of the total pension value. The revaluation figure has yet to be agreed with the trustees, this is ongoing.

As this was a material change to the company’s finances, it was announced to the stock market on 3rd February, and resulted in a 13% increase in the company’s share price, and coverage in the national media:- BBC,

Financial Times,

Guardian


All the scheme members (51 in total) and their spouses were invited to participate in the project. 73% participated with the Telephone interview with a further 4% preferring to complete a paper form.

Doctors' reports were obtained on 6% of scheme members in addition to the medical interviews.

The process was a great success, with 82% of liabilities being underwritten. All the medical data was shared with the participating insurers and Insurers were very happy with the data received, allowing them to offer significant discounts.

Just Retirement won the tender and completed the transaction.

“We received a good reduction from the insurers which enabled us to pursue a buy in transaction, thus de-risking our scheme.” Howard Jones, Director of Howie Group Limited and Trustee of the Howie Group Limited Staff Retirement Benefits Plan


“The MorganAsh process of contacting scheme members went very well.”

Howard Jones, Director of Howie Group Limited and Trustee of the Howie Group Limited Staff Retirement Benefits Plan —

44 Scheme Members were approached and a good participation rate resulted  in 95% of liabilities being medically underwritten.

A buy-in transaction for £12m tranche of liabilities was completed in the £60m pension scheme.

Partnership won the contract

With JLT Employee Benefits advising us, we were able to achieve a competitive price by selecting Partnership Assurance and we are pleased with how streamlined the process was.”

Graham Wardle, BESTrustees, Chairman of the Trustees

This new process for completing underwritten buy-in transactions is an important step for Schemes looking to derisk in the most cost effective way.“

David Barratt, Buyout Consultant, JLT Employee Benefits

 


“A common approach to the collection of health and lifestyle information from members will ensure that Schemes wishing to de-risk through an underwritten exercise will now have a choice of insurers and can be confident of attaining a competitive price."

Will Hale, Director of Corporate Partnerships, Partnership Assurance

A small sample size of 28% of members was selected, and from these 61% of members participated.  This resulted in 75% of the liabilities being assessed.

The results led to changes to the assumptions on mortality. The information on marital status alone led to a material difference in mortality assumptions.  Life expectancy was shown to be 1.6 years less than SAPS S1PA tables, which resulted in a reduction to the pension deficit of pensioners alone of £1.2m.  When this was adjusted for the whole scheme the reduction in pension deficit was £2.4m.

As a result of the PLUS project the scheme actuary changed the mortality assumption.


Renold the international supplier of industrial chains employs around 2,500 people in more than 23 countries around the world. The Renold’s DB pension scheme entered a buy-in to fully de-risk around 25% of its UK pensioner liabilities with Just Retirement.

The £25m medically underwritten buy-in covers just 35 members with higher annual pension incomes who represent a significant concentration of longevity risk given the scheme has around 3,500 members in total.

Under the terms of the buy-in, Just Retirement secures a quarter of the Scheme’s pensioner liabilities by insuring the benefits of the members with the highest liabilities. The insurer’s medical underwriting meant the scheme was able to secure the liabilities at a small discount to their assumed funding valuation after more than 90% of members provided medical information.

Tim Coulson, director of DB solutions at Just Retirement said:I am very pleased that we were able to support Renold and the Trustees in this step of their pension de-risking journey as they secure pension benefits for their scheme members. It is a testament to the quality of their advisers and our team that we were able to execute this ‘Top Slicing’ deal, in a short time frame and provide the client with certainty around the execution of transaction.”

Gavin Markham, Head of Bulk Annuities, Barnett Waddingham commented:We were delighted to be able to help the Trustee and Company successfully complete another significant de-risking step for the Scheme, and achieve such a good outcome for all parties including the removal of longevity risk for these members. The highly competitive terms achieved, supported by the practical approach of Just Retirement, demonstrated the potential value of medical underwriting for schemes. In our view, top-slicing deals of this nature will become an increasing feature of the market

Warwick Jones, Chairman of Trustees, Renold Pension Scheme: “Working closely with the Company, as part of the overall de-risking strategy for the Scheme, the Trustees had clear objectives for managing the risks associated with the liabilities for this group of members. Supported effectively by our advisers Barnett Waddingham and Pinsent Masons throughout the process, this buy-in transaction with Just Retirement represents an extremely positive result for all parties associated with the Scheme.”

The company said that attractive pricing terms combined with the medical underwriting process meant the scheme could secure the liabilities at a small discount to their assumed funding valuation.

The transaction has no impact on the funding level of the scheme and did not require any additional contributions from the group. Consideration for the buy-in will be sourced entirely from a portion of the scheme's index-linked UK government bonds.

The group is now fully protected from volatility in longevity, inflation and interest rates in respect of these members.

Robert Purcell, Chief executive "The buy in of 25% of current pensioner liabilities is an important step in de-risking the group's cash flows and balance sheet from the impact of volatility in pension liabilities. Re-building the group's balance sheet and closely managing our legacy pension obligations are important aspects of the group's overall strategic objective to deliver sustainable gains in shareholder value."

Barnett Waddingham advised the scheme on the agreement, for which conversations began in November 2014, and appointed MorganAsh to undertake the medical collection and tender process.


“The Company considers this transaction to be an important move in helping to manage its legacy pension obligations and the impact of volatility on its balance sheet. Attractive pricing through the use of medical underwriting allowed us to secure a material proportion of the pensioner liabilities at no additional cost, thanks to the proactive advice and commitment of Barnett Waddingham.”

Brian Tenner, Finance Director, Renold plc


 

We operate the central medical underwriting service for broking medically underwritten bulk annuity transactions for defined benefit pensions in the UK.
 
We work with EBCs and pension consultants to facilitate the tenders.
We provide a specific web site and video for scheme members.

 

 

"We have had great experience with the MorganAsh medical underwriting service and it is a vital component in growing the bulk annuity market." James Mullins Head of Buy-in Solutions at Hymans Robertson.
 
We have an agreed service with the five participating insurance companies in the UK: Aviva, Legal and General, Just Retirement, Partnership and LV=.
The service is FREE to the trustees as the providers will reimburse our fee when the transaction completes.

The service has already resulted in over 40 transactions being completed:
  1. Scheme members are happy to participate with participation rates averaging 80%
  2. 98% of projects have led to completed transactions
  3. Savings of up to 10% have been realised
  4. Trustees are content with the process
We have overcome the fears of the process being invasive, or scheme members not participating.

“We are seeing increasing enthusiasm amongst trustees and sponsors of moderately sized pension schemes to integrate medical underwriting into their bulk annuity purchase exercises. A coordinated and consistent approach is therefore crucial and we welcome MorganAsh's efforts to develop and refine such an approach in conjunction with a number of insurers.

Neil Rogers, Bulk annuity consultant at Mercer Limited.

Providers_Plus

 

“The overall growth in medically underwritten bulk annuity activity this year has been considerable, not surprising given the improved pricing this can bring. Effective data collation from pensioners is crucial - MorganAsh’s activity in this area can only help support further market growth.Costas Yiasoumi from Partnership.

 

“The MorganAsh PLUS service has created robust outputs that has accelerated confidence amongst consultants in the medically underwritten de-risking market. This has resulted in a significant rise in the number of consultants participating in the market during the last year.”

Tim Coulson, Director of defined benefit solutions at specialist insurer Just Retirement.

 

The receipt of high quality data is paramount in enabling us to understand the health of individuals and it ensures there is no bias in selection. The MorganAsh interview is of high quality and reliability and we are happy to price on this basis.”

Phillip Beach, Head of Core Pension Risk Transfer Business for Legal and General 

 

“Trusted and consistently high quality data, particularly data collected using trained healthcare professionals as part of a medically underwritten bulk annuity tender, is essential in giving reassurance to the Trustees and scheme members – and also in obtaining a competitive price for the client”. 

David Stewart, a Partner at Lane Clark & Peacock

 

 


Our MUMS service provides an evidence based forecast of mortality of individuals and hence the overall longevity for the scheme, enabling improved accuracy for scheme valuations.

Companies, trustees and advisers benefit in multiple ways:

  1. Provides evidence based improved accuracy scheme longevity valuations
  2. Resolves valuation arguments
  3. Prepares for future buy in/out transactions
  4. Improves risk management, notably for Solvency II
  5. Assists negotiations for funding requirements
  6. Facilitates M&A activity.

We have assessed over £1Billion of pension assets for small and large schemes.

This method has been shown to alter longevity assumptions significantly and can dramatically reduce reserves required for pension schemes by millions. The cost of implementation is just 1-2% of the savings that can be realised.

The service is simple to implement, confidential and consumer friendly. To see a small video of the process have a look at our scheme member web site and video at www.morgansh.com/pension/muba

 


For a video on how the process works visit www.morganash.com/pension/muba

We use purpose built bespoke IT systems to manage all data and share with the insurance providers, thus ensuring data is secure and confidential. 

Like all processes they cater for many circumstances, but broadly the process is:

  1. Letters are sent to scheme members from the trustees explaining the process
  2. The scheme members return the forms
  3. We interview members over the phone (or send paper forms)
  4. We obtain reports from doctors where necessary
  5. We provide the information on our secure portal for the insurers to access for their tenders
  6. Tenders are submitted
  7. The winning provider reimburses MorganAsh fees.

Contracts

Trustees remain as Data Controllers

We have a standard Terms and Conditions

Compliance

MorganAsh are authorised and regulated by the FCA.

 


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:

  1. Is fast
  2. Economical (half the price of a doctors report)
  3. 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.

Quality of data for differing collection methods

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.

TI quicker than 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.

 

 


Winners - Life Insurance Innovation award - November 08, 2016

"Most Innovative Actuarial / Risk Consultancy Services Provider Of The Year” The Life Insurance International awards For use of Big Data in MUMS and MUBA services The Life Insurance International awards were announced on November 17th at a Gala dinner in London ...

Contact