MIB�s e-Services Corp. Introduces New Tool to Enhance Life Underwriting Audits

(Westwood, Mass. � September 27, 2004) MIB Group, Inc., the largest North American cooperative for fighting application fraud in life, health, disability and long term care insurance, through its subsidiary, e-Services Corporation, is announcing the launch of its latest product, Audit Focus at next month’s Association of Home Office Underwriters (AHOU) show in Chicago, Oct. 3-6.

Audit Focus lets life insurance direct writers and reinsurers audit all of their issued or assumed policies within the last 24 months, highlighting only those cases for review where a policy’s issued rate class appears to be unsupported by the actual mortality risk. Auditors no longer need to pre-select a limited number of policies for review. Audit Focus provides the only truly comprehensive assessment of the risk selection process, maximizing an auditor’s valuable resources by focusing their attention where the benefits are most substantial.

“Audits are one of the key drivers in risk management today. We’ve developed Audit Focus to help insurers optimize their audit practices. Direct writers can audit more efficiently, reviewing only the most relevant policies instead of spending valued time looking at clean cases. Audit Focus radically boosts effectiveness providing a more complete picture of the risk selection process. Reinsurers gain critical insights for better understanding the risk selection process across their entire book of business,” says Doug Mertz, e-Services’ Vice President of Sales. “Audit Focus allows both direct writers and reinsurers to jump ahead in the audit process and focus their time, resources and attention where it’s most needed.”

Audit Focus is an automated, outsource service; carriers send an electronic file with case data and receive aggregate and drill-down reports outlining flagged cases. Here’s how it works: First Audit Focus checks every recently issued policy for a match against the MIB impairment database. Matched cases are then evaluated by the Mortality Risk Assessment Engine, built by e-Services and validated by Milliman USA. Using MIB information the underwriter had at the time of their investigation, the Engine assigns mortality risk for each policy comparing it against a mortality risk level based on the policy’s rate classification at issue. Policies that exceed a critical comparative range are reported for a closer look. The Engine is calibrated using either e-Services’ mortality assumptions, based on industry standard valuation mortality tables, or company specific mortality assumptions.

Audit Focus allows auditors to evaluate their underwriting guidelines, or those of their ceding companies, as well as identify areas for additional training. This evaluation allows underwriters to become more effective at managing and controlling risk.

e-Services Corp. is introducing Audit Focus to the market at the AHOU conference in Chicago, October 3-6. A personal demonstration of the product will be available at booth #304.

About e-Services Corporation

e-Services Corp. is the research and product development arm of MIB Group, Inc. MIB Group, Inc., headquartered in Westwood, Massachusetts, is the premier provider of Internet-based information and knowledge services to the risk management market space in North America and a leading facilitator of electronic insurance commerce. MIB customers underwrite over 95 percent of the premium dollars for individual life insurance issued in the United States and Canada. MIB Group, Inc. companies include MIB, Inc. and e-Services Corporation. For more information visit www.mib.com