Munich Re: Digital Health Records Cut Insurance Risk by 35%

According to research from Munich Re, the global reinsurance company, Electronic Health Records (EHRs) are reducing insurance risk assessment costs by 35%. The study examined 525 life insurance applications across multiple distribution channels, including digital-first insurers.
The integration of EHRs into insurance underwriting processes, where companies assess risk before issuing policies, marks a shift from traditional paper-based medical records. Clareto, a Munich Re subsidiary specialising in digital health data exchange, provided the records for the study.
The research focused on accelerated underwriting, a process where insurers make rapid policy decisions without requiring laboratory tests or physician statements. This approach typically uses digital data sources including Medical Information Bureau checks and prescription histories.
Financial Impact and Risk Management
The study found that EHR integration delivered net savings of US$916 per policy after costs. The technology, which costs US$55 per policy to implement, includes multiple data sources and automation services for processing medical information.
Risk assessment improvements were most significant in policies for older age groups and higher value insurance contracts. This reflects the increased likelihood of medical conditions in older applicants and the financial impact of accurate risk assessment on larger policies.
The research examined applications with face values up to US$2m and applicants up to age 65, reflecting typical parameters for accelerated underwriting programmes.
The study included data from middle and high-net-worth market segments across broker, general agent and direct-to-consumer channels.
Operational Transformation
The proportion of cases receiving immediate risk assessment decisions increased from 68% to 79% when using EHRs. This improvement in automatic decision-making reduces the number of applications requiring manual review by underwriters.
The system identified multiple risk factors that traditional processes might miss. Build measurements and weight changes emerged as primary drivers of risk reassessment, followed by substance use and cancer history.
The digital records contained tobacco use information in 76% of cases, with 60% including dates of use.
Munich Re's methodology focused on measuring mortality savings, a key metric in insurance risk assessment.
The company used the 2015 Society of Actuaries Valuation Basic Table as its mortality baseline, applying standard industry assumptions for policy lapse rates and interest calculations.
Of the study sample, 102 cases (19%) that did not receive an underwriting decision under the accelerated underwriting scenario received a decision after incorporating EHRs.
For the 311 cases that received decisions both before and after EHR integration, 61 cases received different decisions after adding EHR data.
The research reveals that EHRs can confirm applicant disclosures and highlight inconsistencies in real-time.
This capability enables insurers to review and assess conditions that historically required full underwriting with laboratory tests or attending physician statements.
Munich Re indicates it will release additional research examining EHR impact in traditional underwriting processes, where laboratory tests are standard practice.
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