Medical evidence that really matters in life underwriting - value, uncertainty and over engineering
Which medical tests make the biggest difference to life insurance risk assessment?
This article was written by Michael Ducker, Doug Rix, Asil Motala, Daniel Meier
Medical testing: How much is enough?
More medical evidence does not always mean better risk prediction. A test that identifies a risk on its own may add little value when other information is already available.
Drawing on the Multi-Ethnic Study of Atherosclerosis (MESA), Swiss Re examines which medical tests meaningfully improve mortality risk prediction, where their additional value is limited, and what this means for underwriting decisions.
What can the study help you understand?
Key messages from the study
Value depends on what you already know
The incremental value of a medical test depends strongly on the evidence already available, and relationships between risk factors can be complex.
Testing should reflect the portfolio
Medical evidence requirements should consider the risk profile and characteristics of the population being underwritten.
Severity alone does not determine value
Prevalence, the uniqueness of the information captured, and overlap with existing evidence all influence the value of a test.
Testing strategies need to evolve
As insured populations, medical technology and risk profiles change, the value of underwriting evidence should be reassessed through ongoing, robust analysis.
How Swiss Re can support
Swiss Re can support clients applying these insights in practical ways by:
- quantifying cost–benefit trade-offs for underwriting evidence,
- assessing incremental value of new medical tests before deployment,
- helping align underwriting rules with pricing and capital objectives.
Download the full report to turn medical evidence into better underwriting decisions.
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Authors Let's explore what this means for you
Michael Ducker
Doug Rix
Asil Motala
