21 Nov, 2018· read

Underwriting automation with a major European insurance provider

XpertRule was approached by a European Insurance Company desperate to improve their existing life insurance underwriting process.

Underwriting

The challenge

The main objectives were to reduce the cost of underwriting, to speed up the underwriting process and provide customers with a better service, and to target key distribution channels such as large brokerages with an industry-leading decision service.

The solution

We quickly assessed that our Intelligent Automation (IA) platform could form part of a solution to automate the processing of up to 80% of life insurance proposals.

The first part involved Decision Modelling techniques. Using our democratised development environment, Subject Matter Experts (the human underwriters) could quickly specify and maintain the hundreds of underwriting decisions needed to automate up-to 50% of proposals.

To increase the level of automation further we then assessed the more complex proposals. For this we looked at Machine Learning. Data from historic applications and the subsequent underwriting decisions could be analysed. The generated profiles could then be used as additional underwriting knowledge and incorporated into the Decision Modelling being undertaken by the Subject Matter Experts. This would put levels of automation up-to 70%.

Further Machine Learning, applied over time, could potentially increase the level of automated underwriting to over 80%.

The benefits

Using IA means 80% of all proposals could be automated, with a 0% increase to risk.

The organisation would also benefit from:

- Improved relationships with brokers due to service improvements and reduced delays.

- Released underwriters to concentrate on more difficult cases.

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