Rethinking underwriting: Navigating the new frontiers of diabetes risk in B2B policies

Rohit Boda, Group Managing Director, J.B. Boda Group talks about the various approaches that insurers are using to improve the method by which diabetes risk is assessed within the ever-changing framework of business-to-business insurance

Diabetes risk assessment in business-to-business (B2B) insurance policies is undergoing a significant transformation. Underwriting decisions have historically been influenced by variables such as the type of diabetes, age at onset, duration, and control. However, the landscape is evolving, with a contemporary focus on innovative dimensions including co-morbid conditions, lifestyle decisions, wellness integration, and real-time data integration. Every year on November 14th, World Diabetes Day raises global awareness of diabetes and its impact on health. This day also highlights the importance of reconsidering diabetes underwriting policies that are going through significant changes to promote better health results in the context of B2B insurance policy developments.

Traditional and innovative factors for diabetes underwriting

In the past, underwriters gave significant consideration to variables including diabetes type (Type I or II), duration, age of onset, and control when making evaluations. But the scope is expanding, and co-morbid diseases like dyslipidemia and hypertension are now considered as part of contemporary evaluations. Furthermore, the extent of end organ failure, which includes diseases such as diabetic nephropathy, neuropathy, and cardiomyopathy, is becoming more and more prominent. The move toward a more comprehensive understanding makes it possible for insurers to create a more precise and detailed picture of a person’s risk of developing diabetes.

Lifestyle as a central pillar

There is a noticeable change taking place in the underwriting landscape, with a significant focus on lifestyle aspects. Improved lifestyle choices have a significant impact on diabetes-related mortality, potentially adding up to 10 years to life expectancy, as multiple datasets have precisely defined. The importance of lifestyle decisions in managing diabetes is becoming more widely acknowledged by insurers, who are now incorporating these variables into risk assessments. People are encouraged to lead healthier lifestyles as a result of this development, which aligns their interests with insurers’ efforts to reduce related risks.

Innovative wellness integration

The incorporation of wellness measurements is one of the most innovative aspects of contemporary diabetes underwriting. Organisations that proactively adopt wellness habits, such as regular physical activity, exercise, sound sleep, and efficient anxiety reduction, demonstrate substantially lower rates of death and morbidity. Financial implications surround this method in addition to health benefits. AHCs (average hospitalisation costs) in diabetic groups with wellness integration show significant reductions. Additionally, there is a noticeable change in the way risk is classified: declined classes are now sub-standard categories, while severely sub-standard lives are now moderately sub-standard classes. Through creative integration, policyholders and insurers can align their interests and create a mutually beneficial framework that encourages healthy living.

Holistic assessment in life and health underwriting

There has been a paradigm shift in the field of life and health underwriting from just focusing on HbA1c levels, which is a blood sugar control test, to a more comprehensive examination. This all-encompassing method takes into account a number of important factors in addition to a wellness quotient, offering an advanced overview of a person’s general health. Expanding the assessment parameters allows insurers to customise policies to each individual’s distinct health profile, leading to more precise risk evaluations and, ultimately, more individualised coverage.

Real-time data’s role

Using real-time data is an innovative approach to diabetes assessment. Several international insurers are providing substantially better rates to applicants with diabetes who voluntarily provide real-time data via wearables or remote monitoring. Both insurers and insured people benefit from this win-win situation that is created by their mutual agreement. For well-controlled diabetes applications, which are supported over time by ongoing monitoring, insurers anticipate a better mortality experience, while insured individuals benefit from more favorable rates.

One of the most innovative aspects of B2B policies’ ongoing changes in the underwriting landscape is the evaluation of diabetes risk. We now have the complete knowledge and understanding that includes co-morbid conditions, lifestyle choices, wellness integration, and real-time data, in addition to traditional factors like type, age, duration, and control. This change gives people the ability to actively manage their health and helps insurers make risk assessments that are more accurate.

Innovative technologies, data analytics, and an emphasis on holistic well-being are coming together to create a more personalised and responsive insurance policy to meet the ever-changing health needs of individuals and businesses alike is the promise of the future. The insurance industry’s future underwriting may be redefined as it continues to explore these new frontiers, with policyholders and insurers working together to promote healthier lifestyles and build a more responsive and resilient insurance ecosystem.