Transamerica Reinsurance Mortality system receives recognition

Transamerica Reinsurance’s Mortality Management System was recently recognized by Celent as a Model Carrier Component in Underwriting in its report, Celent Model Carrier 2009: Case Studies of Effective Technology Usage in Insurance. Transamerica Reinsurance, a leading supplier of life reinsurance in the United States, is a division of Transamerica Life Insurance Company. Celent is a research and consulting firm focused on the application of information technology in the financial services industry.

This is the second honor the Mortality Management System has garnered. It was recognized by Insurance Networking News as a Runner Up to its 2008 INNovators Award in November 2008.

The Mortality Management System is a technology-driven solution that electronically connects all steps in the new business acquisition process from application to issue. Using a rules-based underwriting engine at its core, the system captures all data for both immediate use in underwriting and for longer term analysis. This straight-through process results in greater productivity and profitability as no other component of the premium dollar – including expenses – can affect profitability as substantially as improved mortality.

“Mortality management demands a comprehensive understanding of all the drivers of mortality,” David Dorans, Vice President of Transamerica Reinsurance’s Product Consulting & Development department, said. “The missing piece has always been systematic data capture and the ability to use good data to analyze product performance at a granular level.

“Our solution enables better decision making, ensuring that the right questions are asked during the application process, responses are complete and submitted electronically, and analyzed for consistent risk selection,” said Dorans.

Using the Mortality Management System can translate into a significant pricing discount on a carrier’s reinsurance mortality, Dorans says. “When clients take a holistic approach to their business and utilize technology tools, the discount we provide on reinsurance can amount to several million dollars over a couple of years.”

Transamerica Reinsurance teamed with MajescoMastek, a leading global IT solutions provider focused on the insurance industry, to develop its solution. The companies work with clients to implement a tailored solution within four to six months – a much quicker turnaround time than the industry average. Design, implementation and integration costs can be financed into the underlying reinsurance arrangement, allowing insurers to amortize the upfront costs over the duration of the reinsurance treaty.

Transamerica Reinsurance, a division of Transamerica Life Insurance Company, an AEGON company, is among the largest suppliers of automatic and facultative reinsurance capacity based on new business (face amount) written (Munich Re Survey, 2007) and net premiums written (Fitch, 2007). The reinsurer is also a leading provider of value-added product development, automated underwriting, and risk and capital management solutions to financial services companies in the life and annuity markets. With offices in 11 countries, it serves more than 500 client companies in the U.S., Latin America, Europe and the Asia Pacific region.