Case Success: Nationwide’s Reinsurance Negotiations Secure Underwriting Win
A holistic approach to underwriting made all the difference on this recent case with Nationwide. Read on to see how they ultimately secured a win through reinsurance negotiation, improving the underwriting offer from Standard to Best Class and placing the case for $185,838 in target premium.
AT A GLANCE
Underwriting: Effective Reinsurance Partnership
Carrier: Nationwide
Product: Nationwide Indexed UL Accumulator
Target: $185,838
SITUATION
A 55-year-old male was seeking to exit a premium financed Whole Life strategy
The proposed insured wanted to move away from a fixed product into a solution offering market upside, initially focused on $5MM of VUL.
Based on his history of mild coronary artery disease indicated by a positive calcium study, the initial response from Nationwide was a Standard Non-smoker offer.
SOLUTION
Mike Souslin, Director, Underwriting and Broker Relations, Nationwide,
Nationwide Indexed UL Accumulator
RESULTS
Further discussions with the client uncovered more nuance to the product selection process. While he was seeking market exposure, he was concerned about market volatility and possible market losses.
The advisor, with the assistance of the AIN Member, helped the client understand the inherent value of the Indexed UL value proposition, as well as the uncapped nature of some of the indexing strategies available in today's market. Once that was in place, the client was onboard with IUL as the product of choice, leaving the offer as the only sticking point,
Mike Souslin, Director of Underwriting & Broker Relations at Nationwide took another look at the case and uncovered a handful of mitigating factors that made the case for an improved offer, including:
A negative stress test after the positive calcium study
Low calculated Coronary Artery Calcium percentile of only 25%
The balance of the client's vascular profile was Best Class
Upon Mike's presentation of the more holistic view of the client's condition, Nationwide's reinsurer agreed to his proposed Best Class offer.
With the Best Class offer in hand, Nationwide secured the win and the case was placed for over $185K of target premium.