Velogica

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Overview

Velogica is SCOR’s automated underwriting platform and algorithm based on a patented process that utilizes electronic data in conjunction with application data to underwrite life insurance applications in real time, delivering results typically in less than one minute. Carriers have been using Velogica to underwrite life insurance applications since 2005 and SCOR’s implementation and underwriting expertise in this market is unmatched. Velogica is currently utilized in a wide variety of mortality and morbidity-based products, programs and distribution. The Velogica evalution (risk factors) can be used in various ways, such as Simplified Issue/Direct to Consumer, Accelerated Programs, Fully Underwritten Programs, and Group Voluntary.

SCOR’s mission with Velogica is to help protect families by facilitating easily acquired life insurance at affordable prices. SCOR is dedicated to continuously expanding automated and accelerated underwriting programs to higher face amounts while bringing the retail cost for coverage closer to rates supported by a fully underwritten process.

Key Features

The Algorithm

Velogica’s sophisticated algorithm correlates the disclosed information to the discovered information and develops a risk profile which considers not just each data source individually but also incorporates any positive or negative underwriting ramifications of relationships between data sources, providing a more nuanced and accurate recommendation than simpler rules engines. Upon receipt of application data from the carrier (including the medical history questionnaire responses), additional data is ordered, including prescription drug profiles, motor vehicle reports, criminal history reports, MIB records, clinical lab information and credit-based mortality scores. Velogica’s expertise is to order, extract, analyze and correlate data and determine the most likely impact to mortality based on that information.

All sources of information identify potential risk factors for an applicant. (A program can use as many data sources as are available, or as few as are desired).

  • Correlation occurs in a central Risk Factor Evaluation Engine.
  • Scoring then takes place for all identified risk factors, regardless of the source of the indication.
  • This design allows for more control over comorbidity factors, and support of custom scoring logic.
  • Evaluation considers “strength of information” (relative trustworthiness of different sources of evidence).

Included with each underwriting recommendation, Velogica delivers all the underlying data for underwriter review (when necessary) and includes risk factors and reason codes that explain what data sources factored into the final recommendation.

What makes Velogica unique?

  • The SCOR Velogica team manages the relationships between evidences and data sources, where as other engines leave the management of relationships between evidence to the carrier's rule-writers which have to maintain relationships between every source of evidence and data.
  • Extending this approach to a new source of information significantly increases the complexity of rules, however this sophistication and expertise is managed by the SCOR Velogica team.
  • Instead of the carrier maintaining this complex web of rules, Velogica allows the carrier to simply interact with their specific rules at the risk factor level – after the powerful logic of correlation has taken place.

Velogica risk factors can be used in several ways:

  • Apply Underwriting Scores: Each risk factor can have underwriting debits assigned to it at a fine-grained level. This scoring can vary not only from company to company, but by product.
  • Drive Workflow: The outcome of risk factor selection can be used to trigger specific workflow, such as the ordering of traditional evidence (where necessary), or directing a case to a specific underwriting work queue.
  • As an Input to a Predictive Model: Combining risk factors identified by Velogica with other data you may be using in a predictive model can increase the volume of business directed through the instant channel.

Business Intelligence

Velogica includes a robust business intelligence platform through which management reporting, risk factor insights and producer analysis are available on-demand. Like the core underwriting system, the business intelligence platform is constantly being enhanced, and customer input is an important input into our feature roadmap.

The Producer Analysis module is an extremely powerful tool which enables carriers to manage potential anti-selective behavior occurring within their distribution network. This dashboard calculates a probability score of unusual or anti-selective behavior on each of 7 different possible areas of non-disclosure or falsified information and allows carriers to drill down to individual agent detail.

Velogica carriers have had success focusing attention on the worst 1-2% of producers identified in this report for possible training and/or other remediative action.

Key Benefits

Velogica adds protective value and provides efficiency gains when used in any underwriting process, specifically fully underwritten business. The value associated with Velogica’s ability to quickly and consistently evaluate lengthy and complex data and correlate that with application disclosures is a great benefit even if other traditional underwriting requirements are needed. In a fully underwritten program, the Velogica underwriting engine can incorporate both the instantly available data and traditional underwriting elements such as labs to allow for even more automation and efficiency for higher face amount business.

At some age and face amounts the instantly-available decision generated by Velogica can be used as the final underwriting decision without additional underwriting evidence. SCOR is squarely focused on continuing Velogica’s expansion to higher ages and face amounts in what has traditionally been a fully underwritten process.

Velogica’s architecture allows for customized scoring by carrier and by product, allowing for certain risks to be acceptable for one product while rated or declined for another. Velogica is also capable of generating client specific workflow codes for incorporation into an underwriting workflow platform or for underwriter follow up.

Velogica is designed to easily integrate with a workflow system/underwriting workbench. The workflow system provides the framework to display the Velogica output for all interested users. Velogica can provide detailed reason and workflow codes to enable automated action by a carrier's workflow system. Actions may include policy ratings, ordering or waiving additional underwriting, policy issue or internal workflow routing. Velogica has been integrated with (and is in use by) several industry leading e-application and workflow platforms.

Velogica is offered as a web service rather than as software that carrier's install and host on their systems. With that, SCOR resources provide the IT support and monitoring capabilities to ensure the system is up and running. Our IT team is also there to handle any data source/or vendor issues including real time carrier notifications of any issues. This model frees up carrier resources to concentrate on other initiatives and projects.

Velogica holds a SOC 2, Type II for Security, Availability and Confidentiality. This certification process involves a thorough investigation on an annual basis by an independent third-party auditor which covers:

  • System architecture and technical controls
  • Software development lifecycle
  • Protection of Personally Identifiable Information
  • Business continuity and disaster recovery plans with regular testing and plan maintenance
  • Network penetration and Velogica application security testing