RGA Reinsurance Company, a subsidiary Reinsurance Group of America Inc.
(RGA - Analyst Report
) has announced a strategic partnership with Synodex – a subsidiary of Innodata Inc. (INOD). Per the agreement Reinsurance Group will use Synodex’s data computing to assess life insurance risk and investigate claims.
Innodata is a provider of outsourced services to the publishing and information services industry through its content services division, and a solution provider to the insurance industry through its Synodex division.
On the other hand, Synodex extracts and classifies data from unstructured medical records for insurance underwriting and serves as a connecting platform between life insurance brokers and agents, and place applications.
Synodex utilizes a proprietary platform to transform medical data from health records into concise, highly-structured human-readable reports as well as computer-readable XML data. RGA Reinsurance Company can use Synodex reports to support underwriter decision-making and can use Synodex XML data to power automated systems.
By using Innodata’s services, Reinsurance Group will be able to make accurate decisions, have greater control over the underwriting process and superior claims investigation. This will result in writing more business through improved operational efficiency and by saving on underwriting time.
Innodata’s plans to provide products with add-on features using Synodex APS Extract data are also on the cards. Along with Synodex’s data and RGA’s Rx automated scoring system, this product will provide risk score to drug prescription issued. This scoring will enable the company’s underwriter to efficiently assess an applicant’s Rx history, so that his or her underwriting risk can be properly and quickly evaluated.
This move by Reinsurance Group to use automated underwriting should directly help its bottom-line results by improving workflow, discipline and consistency, reducing expenses enabling prompt response to agents’ demands and better handling of competitive pressures.
In April last year, Synodex signed a two-year service contract with a Fortune 1000 life insurance company. We expect other life insurers to opt for the automated underwriting process given the clear benefits of using it.
Reinsurance Group of America carries a Zacks Rank #3 (Hold). Some better-ranked life insurers worth considering include China Life Insurance Co. Ltd.
(LFC - Analyst Report
), Lincoln National Corp.
(LNC - Analyst Report
) and Primerica, Inc.
(PRI - Snapshot Report
). All these sport a Zacks Rank #2 (Buy).