Transcript New Business Submission Strategy

Avocations
Maintaining our Competitiveness
Sue Haviland, CLU, ChFC, FALU
Managing Senior Underwriting
Director
Insurance products are issued by: John Hancock Life Insurance Company (U.S.A.), Boston,
MA 02116 (not licensed in New York) and John Hancock Life Insurance Company of New
York, Valhalla, NY 10595.
© 2013 John Hancock. All rights reserved. MLINY051313080
For Agent Use Only. Not to be used with the public.
Agenda
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Approach to Avocations
Mountain Climbing
Scuba Diving
Aviation
Motor Vehicle Racing
Avocation Questionnaire
Questions
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Our Approach to Avocations
• Staying abreast of changes in avocations,
e.g., new activities, popularity of various avocations, etc.
• Maintaining our competitiveness
• Adjusting our underwriting guidelines to address safety
improvements, experience, industry trends
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What’s New?
• Recently made changes to:
– Mountain Climbing
– Scuba Diving
– Aviation
– Motor Vehicle Racing
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Mountain Climbing
• New guidelines:
– Rock climbing any difficulty:
• Possible Standard, to Yosemite Decimal System
(YDS) class 5.9
– Ice/snow climbing:
• Reduced ratings in North America
– Cliff and rope climbing:
• In several categories over 100 feet,
possible Standard to YDS class 5
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Mountain Climbing (cont’d)
• Continued improvements:
– More competitive guidelines in some areas
– Shift in the underwriting focus more to elevation
and difficulty including climbing grades, locations,
peak elevations
– Consider health and other co-morbid risks
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Case Study #1
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38-year-old female
$2,000,000 VUL
Medically Super Preferred
Climbing for 20 years
Plans to attempt Mt. Rainier this year
Member of climbing club
Attempts one climb every 2 years
• How do we now see?
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Case Study #1 (cont’d)
• Mt. Rainier – 14,411 feet
• YDS – 5.8
• Preferred, with a $3.50 per thousand flat extra
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Scuba Diving
• Now possible Standard to greater depths
• Improved ratings for wreck diving for divers who do not
penetrate the wreck
• Added a “free diving” category to reflect this growing sport
• Technical diving is now more accurately stratified,
resulting in lower ratings for some divers and higher
for others
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SCUBA (cont’d)
• Experience counts
• To better reflect mortality risk, John Hancock’s approach
now driven by certification rather than by focusing
primarily on depth
• Also recognizing “vacation only” participation
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Case Study #2
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56-year-old male
$5,000,000 Term
Medically Preferred
Certification – Advanced Open Water Diver
Belongs to diving club
Dives per year – 35, maximum depth 65 ft.
Participates in night diving and non-penetration
wreck diving
• How do we now see?
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Case Study #2 (cont’d)
• Medically Preferred
• Would not rate for scuba diving avocation
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Aviation
• For student pilots, possible Preferred with flat extra for
aviation, if regular criteria are met
• Super Preferred with an aviation exclusion
• Ages 21-74
• Consideration given to co-morbid medical and non-medical
risks that may impact ultimate underwriting decision
• Our guidelines now reflect industry approach to aviation
risk while still maintaining our competitive position
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Case Study #3
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48-year-old male
$2,500,000 UL
Medically Preferred due to cholesterol levels
Airplane – Cessna 172
Student Pilot – 50 hours of instruction
Clean MVR, no CAD, CVA
• How do we now see?
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Case Study #3 (cont’d)
• We would offer Preferred with a $3.00 flat extra
per thousand
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Motor Vehicle Racing
• Updated guidelines to more accurately reflect mortality
• Examples of safety improvements:
– Track safety – better barriers, expanded run-off areas
and increased regulations
– Driver safety – e.g., HANS (Hand and Neck Support)
device, 5/6 point harnesses, fire suppression, etc.
– Car design – crumple zones, fuel cells, seats, roll cages
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Case Study #4
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41-year-old male
$5,000,000 of UL
Medically Preferred due to family history
Avocation Questionnaire
Member – Sports Car Club of America (SCCA)
Amateur – 8 race weekends yearly
Closed course – max speed 90 mph, average 52 mph
Car – Sports 2000
• How do we now see?
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Case Study #4 (cont’d)
• We would now offer Preferred with no flat extra
• Previously $2.50 per thousand flat extra
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Avocation Questionnaire
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Questions?
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