Nine out of 10 Underwriters View Opioid Addiction as a Threat to Mortality, Finds Munich Re Survey

By a News Reporter-Staff News Editor at Mental Health Weekly Digest -- More than 90 percent of underwriters are concerned about the potential impact that opioid addiction will have on mortality of the insured population, according to a recent survey by Munich Re, one of the world's leading reinsurers. The survey of life insurance professionals was conducted at the Association of Home Office Underwriters (AHOU) Annual Conference, held in San Diego, California in April 2017 (see also Insurance Broker Companies).

Of the 126 underwriters surveyed, nearly two-thirds (63 percent) reported that over the last year they have seen an increase in the number of insurance applicants with a history of opioid use. Further, more than half (56 percent) reported that they most often see a medical history of opioid use among applicants ages 35 - 54 years, while only 20 percent reported that they most often see a medical history of opioid use among applicants ages 55 years and older. This result is unexpected as it is generally held that individuals ages 55 years and older are more likely to have taken opioids for pain.

More than half (53 percent) of the underwriters surveyed reported that the life insurance companies they work for do not currently test for opioids. Although the vast majority of underwriters surveyed expressed concern about the potential impact of opioid abuse on mortality, only half (50 percent) expect their companies to make any changes to their testing practices.

"As the industry is facing one of the worst drug addiction epidemics in American history, it's apparent that there is a disconnect between the effect this will have on mortality, and the likelihood of life insurance companies to change their underwriting policies," said Bill Moore, vice president of underwriting and medical for Munich Re, US (Life).

Only 8 percent of respondents said their company will test for opioids regardless of the policy size. 21 percent responded that their companies test for opioids for policies over $1 million, and a further 8 percent responded that their companies test at policy thresholds ranging from $100,000 to $1 million.

"For life insurance companies, changing policies can appear to be an uphill battle, as it is likely to involve additional expenses for testing, discussions with marketing, or even internal concerns over timing of the approval process," Moore continued. "However, we do have the tools and resources at our disposal to begin to detect risky behaviors or signs of abuse among policy holders, in the hopes that this may help in addressing the greater problem."

Among those surveyed, 89 percent observed that pharmacy databases could be useful when screening for chronic opioid use, as they have the potential to shed light on frequent prescription refills, or for multiple prescriptions from multiple doctors. Methodology The survey was conducted on site at the Association of Home Office Underwriters (AHOU) 16th Annual Conference in San Diego, California from April 2-3 2017, and is intended to represent the views of 126 underwriter attendees, primarily from life insurance companies, who participated in the in-person interviews.

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Keywords for this news article include: Mental Health, Addiction Medicine, Financial Companies, Insurance Companies, Insurance Broker Companies, Munich American Reassurance Company.

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