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A new underwriting program that uses big data and artificial intelligence has been launched to make the underwriting process faster, accurate, and easier for tradespeople.
ANZ has built a predictive underwriting capability that offers tradespeople, aged 20 to 40, access to an accurate three-dimensional market segment profile. The program was developed with the University of Technology, Sydney Advanced Analytics Institute, and through the analysis of 10 years of OneCare underwriting and claims decisions.
Peter Tilocca, ANZ Wealth chief underwriter, said the change is a significant step forward for the insurance industry which has been locked in the same process for the past two decades.
“The underwriting process today is at best described as cumbersome, and in a world where the consumer now expects instant gratification, an underwriting time frame average of 20 to 30 days will no longer be acceptable,” Tilocca said. “By working backwards from the claims history and seeking out commonalities in this data set, we have been able to reduce underwriting personal statements while maintaining the integrity of our insurance portfolio.”
ANZ said the innovation has reduced the number of medical questions in the underwriting process for the full OneCare product suite to eight, and is anticipated to positively impact the completion rate of insurance applications.
“Currently 20% of life insurance applications are not completed due to a requirement for more data or incomplete information provided,” Tilocca said. “This has a detrimental effect not only on Australia’s underinsurance problem, but also on the customer experience and the perception of insurers.”
Tilocca said ANZ is “excited about the opportunities big data and artificial intelligence are bringing to the underwriting process, giving advisers and their customers a better experience.”
