Smart Score: Life Insurance's Secret Weapon

A good Smart Score is dependent on the context of the individual's situation. Smart Score is a risk score based on predictive analytics that is used to determine life insurance underwriting. It is calculated based on lab results from a mortality standpoint and can help individuals improve their underwriting offer. The more factors that are considered, the more accurate the score. While a higher score indicates a higher risk, the score can be broken down to show the individual contribution of each factor. Importantly, Smart Score is not dependent on age or sex.

The 'Smart Score' is calculated based on all lab results and can help improve underwriting offers

Life insurance underwriting is the most successful implementation of predictive analytics. The most common method used to determine Preferred class eligibility is the cut-off system, where specific thresholds of BMI, blood pressure and cholesterol values are used to make the decision. The Smart Score approach is different: it is a risk score based on many more factors.

CRL has data on more than 15 million applicants, over 500,000 of whom have died since data collection began. Each individual has up to 50 different lab values and body measurements. This makes for a rich data set to determine which factors are most important and how they balance each other. In studies comparing the performance of Smart Score versus real-life knockout systems, Smart Score comes out ahead every time. This is because it considers about three dozen different factors instead of the usual three or four used by knockout systems.

The Smart Score is developed based on all of an individual's lab results, and it may help improve underwriting offers. It breaks down the contribution of each factor to the overall score on a debit/credit scale familiar to life insurance professionals. This helps make "wiggle" decisions on borderline cases.

Smart Score is not dependent on age or sex. Although many lab tests vary with age and sex, Smart Score is corrected so that these differences are minimized. The entire distribution of scores is held constant when updates are made.

The score is based on 3 dozen factors including cardiac workup, LDL levels, exercise capacity, cardiac catheter, carotid ultrasound, etc

A good SMART Score for life insurance is dependent on a range of factors. The SMART Score is a lab-based scoring system that assesses an individual's health and risk factors, which in turn helps determine their life insurance rates and eligibility.

The SMART Score is based on three dozen factors, including cardiac health, exercise capacity, and ultrasound results. A "good" SMART Score will be one that indicates a low risk across these factors.

Cardiac health is a key component of a good SMART Score. This includes a normal cardiac workup, a normal cardiac catheter, and a good exercise capacity test. These factors indicate the health of the heart and its ability to function normally, which is a critical indicator of overall health and longevity.

LDL (low-density lipoprotein) levels are also considered. A good SMART Score will have an LDL level below 100 and an LDL/HDL (high-density lipoprotein) ratio of 5.0 or less. These levels indicate healthy cholesterol management, which is important for reducing the risk of cardiovascular disease.

Exercise capacity is another important factor. A good SMART Score will reflect a capacity for physical activity that meets or exceeds the recommended guidelines for health. This indicates a reduced risk of cardiovascular disease and other health issues associated with a sedentary lifestyle.

Carotid ultrasound results are also considered in the SMART Score. A normal carotid ultrasound indicates healthy carotid arteries, which supply blood to the brain. Any blockages or narrowing of these arteries could indicate an increased risk of stroke or other cerebrovascular issues.

Other factors that contribute to a good SMART Score include normal liver function, a normal prostate exam (for men), and a favourable lab risk score. These factors collectively provide a comprehensive assessment of an individual's health and risk factors, which helps insurance providers determine their rates and eligibility.

It is important to note that while a good SMART Score can indicate a lower risk profile, it is not the sole determinant of life insurance rates. Other factors, such as age, gender, family medical history, lifestyle, and occupation, also play a significant role in determining life insurance costs.

The score is not dependent on age or sex

The Smart Score is a risk score based on several factors, including laboratory tests, body measurements, and other health indicators. It is used in life insurance underwriting to determine an individual's risk class and eligibility for preferred rates. While laboratory tests and health indicators can vary with age and sex, the Smart Score is designed to minimise the impact of these variables.

The Smart Score algorithm is based on data from over 15 million applicants, with up to 50 different data points per individual. This extensive dataset allows for a more nuanced assessment of risk factors and their relative weights. As a result, the Smart Score provides a more accurate prediction of mortality risk than traditional knockout systems, which rely on a limited number of factors and set thresholds.

The Smart Score is calculated using a debit/credit scale familiar to life insurance professionals, making it easier to interpret and apply within the underwriting process. It is worth noting that the entire distribution of scores remains constant when updates are made, ensuring consistency and fairness in the assessment process.

In conclusion, the Smart Score is a powerful tool that improves the accuracy and fairness of life insurance underwriting by minimising the impact of age and sex on the final score. By considering a broader range of factors and leveraging a large dataset, the Smart Score provides a more comprehensive assessment of an individual's health and mortality risk. This helps life insurance providers make more informed decisions and offer tailored coverage options to their customers.

Smart Score has been proven to be more accurate than the knockout system

Smart Score is a risk scoring system that assesses an individual's mortality risk. It is used in life insurance underwriting to determine an applicant's risk class and eligibility for preferred rates. The system takes into account various factors, including laboratory results and body measurements, to develop a comprehensive score that indicates an individual's overall health and longevity.

The Smart Score approach differs from the traditional knockout system commonly used to determine Preferred class eligibility. The knockout system relies on specific thresholds of BMI, blood pressure, and cholesterol values to make eligibility decisions. While this system is straightforward and easy to understand, it has limitations. It only considers a limited number of factors, and small deviations from the thresholds can result in applicants being denied preferred rates.

On the other hand, Smart Score takes into account a much wider range of factors, including up to 50 different laboratory values and body measurements. This comprehensive approach allows for a more nuanced assessment of an individual's health and mortality risk. In comparative studies, Smart Score has consistently outperformed the knockout system, demonstrating its superior accuracy.

The increased accuracy of Smart Score is attributed to its consideration of a broader range of factors. By analysing dozens of different health indicators, Smart Score can identify complex relationships between various health metrics and their combined impact on mortality risk. This level of sophistication surpasses the knockout system's simplistic approach, which fails to capture the interplay between different health factors.

Furthermore, Smart Score is age and sex-agnostic, minimising the impact of these variables on the scoring. This ensures that the scoring system is standardised and equitable for all applicants, regardless of their demographic characteristics. The evidence supporting the effectiveness of Smart Score is readily available, with numerous peer-reviewed articles and industry journals attesting to its mortality risk predictive capabilities.

Smart Score can be used to help make decisions on borderline cases

Smart Score is a risk score based on a wide range of factors, including laboratory tests and body measurements. It is used to determine an individual's eligibility for life insurance and can help make decisions on borderline cases.

The Smart Score approach is different from the traditional knockout system, which uses specific thresholds of BMI, blood pressure, and cholesterol values to determine Preferred class eligibility. While the knockout system is clear and easy to understand, it can be frustrating for clients who are just a few pounds over the limit.

Smart Score, on the other hand, considers dozens of different factors and provides a more accurate assessment of an individual's mortality risk. This increase in accuracy comes with greater complexity, which can make conversations with clients more difficult. However, Smart Score breaks down the contribution of each factor to the overall score, making it easier for life insurance professionals to understand.

In situations where an insurer prefers to use the knockout system, Smart Score can still be a valuable tool to help make "wiggle" decisions on borderline cases. By providing a more comprehensive assessment of an individual's health, Smart Score can help insurers make more informed decisions about eligibility.

Overall, Smart Score is a powerful tool that can improve the accuracy and fairness of life insurance underwriting. It is based on a large dataset of over 15 million applicants and has been shown to outperform the knockout system in studies. By using Smart Score, insurers can make more nuanced decisions, especially in borderline cases, and provide better service to their clients.

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