Hannover Re has highlighted the importance of understanding the causes of claims in life insurance for accurate policy design and pricing. Actuary Chessman Wekwete explained that detailed data on claim causes is essential for products like double indemnity, which offer higher payouts for accidental deaths. The collection of such data not only informs product pricing but also assists in risk management functions, including monitoring non-disclosure during the underwriting process. Wekwete also emphasized the impact of socio-economic factors and medical advancements on claim trends, suggesting that any analysis should consider the broader context of policyholder demographics and external factors.
