2019 ALIC PROGRAM May 19 21 2019 Palm

2019 ALIC PROGRAM May 19 – 21, 2019 Palm Beach, Florida The Next Big Thing is Here 1

INSURETECH AND BEYOND AN EVOLVING LITIGATION LANDSCAPE Frank Best Penn Mutual Hannah Rogers Principal Kristin Wynne Guardian Chris Zimmerman National Life 2

WHAT IS INSURETECH • Insurance + Technology = Insuretech • Technological changes impacting the insurance industry • Artificial Intelligence • Apple watches and fit bit technology 3

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INSURETECH and Underwriting Myriad Issues • Are electronic signatures better or worse than wet signatures? • If underwriting is completely automated, will insurers’ litigators miss the underwriters? • Can digital underwriting be more accurate than underwriting based on examination and records? 5

RESCISSION COMPLICATIONS • What is the origin of the 2 -year contestable period? • Could back-lash to perceived abuses by insurers extend to all states’ requiring a showing of intent to deceive? • Are rescissions worth the expense and disruption? 6

POST-ISSUE UNDERWRITING • What is the answer to the complaint that insurers should not get two bites at the apple? • Does it make sense to limit post-issue underwriting? Where are states’ going with this issue? 7

POTENTIAL FOR DISCRIMINATION • How do we prove big data patterns are not harmful to protected groups? • Other than race or gender discrimination, is there any risk of unfair discrimination among members of the same class? 8

THE FUTURE • Without agents, would the number of policies sold and/or size of policies sold decrease? • Apart from sales volume issues, are there other risks with direct-to-customer sales? • Are there advantages to not involving an agent? 9