Introduction
Most claims made on travel insurance policies are for medical expenses, repatriation costs or medically-related cancellation. Many illnesses resulting in claims are related to the prior state of health of the policy holder. The challenge to an insurer is to be able to effectively risk-rate applicants in a way that is fair and consistent, no matter whether the method of sale is via a travel agency or tour operator, over the telephone or over the Internet.
Healix has produced a system which recognises that underwriting risk depends on a number of variables - importantly what condition the applicant has and where they plan to take it on holiday. It will also look at age, period of advance booking etc. Because the aim is to allow a non-medical applicant to talk to, for example, a non-medical call-handler, all questioning is kept simple and scoreable.
The scores produced by the system can be used in two main ways:
- To place an applicant within a threshold structure, determining
whether they may be offered cover without imposition of terms
or
- To allow calculation of premium commensurate with the underwriting risk they pose
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