Article by Risk Specialist

Article by Risk Specialist

Risk SA has published an article by Risk Specialist, Andre Froneman.  The article highlights cancer stats and the effects it has on Critical Illness. Imagine 75% growth in cancer by the year 2030! Scary but true!! It is an interesting read so please take a few minutes and read it over. Click on this link:...
Underwriting 101 : clinical risk vs insurance when selling a final offer

Underwriting 101 : clinical risk vs insurance when selling a final offer

When loading a policy , we often come up with the argument along the lines of : •         My Dr says I am fine , why are you loading ? •         Dr says since surgery/treatment  I am healthier than before . This is because the Dr looks at the clinical risk , how is the client NOW ? Essentially there are 2 different views : Clinical : The Dr sees the patient and treats him . His current status is good, Dr is happy with results and only has to worry until the client next has symptoms or for his annual check-up. If and when he needs further treatment , e.g. further stents, bypass, angiogram etc. then Dr will treat him again and be paid again for his efforts, whether that is a month, a year or 5 it is immaterial . Risk : We rate up front for the entire life of the policy, we get one chance at pricing correctly for the duration of the contract. When next the Dr treats him, we could in all possibility be footing the bill via a claims pay out. We do not have the option of re-rating if his health deteriorates . Generally you will find that in these instances the client will be having annual check-ups, this is already an indicator that the Dr is not predicting any long term guarantees. Basically what it means is that he is in good health for his condition . Hope this helps a little when selling those final...