Top life insurance carriers use ForMotiv’s rule-based non-disclosure solution to improve underwriting and post-issue audit processes to limit mortality slippage.
As life applications go increasingly digital, the rate in which applicants are misrepresenting themselves is rapidly increasing. Today, over 7% of life insurance applications contain non-disclosure. Carriers are becoming increasingly concerned with Build, Nicotine, Alcohol, Drug, Substance Abuse and other premium and eligibility impacting questions. ForMotiv identifies when applicants are manipulating these high-impact questions and enables you to intervene in real-time.
Tobacco nondisclosure alone costs carriers over $4 billion per year and continuing to rise.
Tobacco nondisclosure rates are accelerating, up from 27% in 2010 to 43% in 2021.
Average mortality slippage in AUW programs
We are trusted by leading life carriers to identify and prevent nondisclosure and material misrepresentation during the digital underwriting process. Our Fraud and Nondisclosure Solutions are powered by our proprietary, non-PII behavioral dataset. We analyze how applicants engage with online applications and spot risky or manipulative behavior you can act on during your AUW or FUW workflows.
On average, AUW programs can expect to see 10-15% mortality slippage. ForMotiv improves this by identifying, on average, 5 instances of net-new material misrepresentation or declineable risk per 1000 applications.
ForMotiv enables underwriters to trigger tailored requirements based on real-time behavioral insights. If an applicant manipulates alcohol-related questions, order an alcohol-specific test. If tobacco disclosure seems inconsistent, flag a targeted screening. This smarter approach reduces costs and improves risk assessment by focusing on what truly matters.
Whether it’s running post-issue audits or implementing a forensic underwriting program, ForMotiv provides cases to review that have a 5X higher likelihood of not disclosing important conditions.
ForMotiv provides significantly more accurate population subsets to review for misrepresentation and nondisclosure than Random Hold Out and Post-Issue Audit populations.
Life insurance applicants flagged by ForMotiv’s Non-Disclosure Solution were 3x more likely to receive a downgrade for tobacco use after completing a medical exam than the random holdout population.
ForMotiv flags incremental instances of material misrepresentation not captured by existing risk controls and 3rd party data sets.
