17 April 2019
On the anniversary of the launch of its digital underwriting platform, MLC Life Insurance has seen a dramatic reduction in the time it takes for its customers to receive cover.
As the life insurer continues its digital transformation, new results show that the average time it takes to assess and admit a customer’s life insurance application has fallen from 15 days to just seven. In the last 12 months, more than 7200 policies have been accepted automatically without the need for any manual underwriting, with underwriting decisions being made on 53% of all benefits applied for, including Life, TPD, Critical Illness and Income Protection.
In addition, because of the modifications made within its underwriting rules – such as the raising the BMI limits at which higher premiums start to be imposed - there has also been a 20% reduction in the amount of medical information requested to support an application. These modifications have further enhanced the application process and helped make it easier to obtain insurance.
Mick Jones, Chief Underwriter at MLC Life Insurance, says the results show the platform is delivering clear results for both advisers and customers.
“Since the launch of the platform last year, the feedback from advisers and customers has been really positive. The platform is quick, easy and efficient, and it supports a more engaging application process between the adviser and the customer. Many advisers state that administration is one of the most expensive aspects of delivering advice, so the platform is reducing the cost of advice by removing unnecessary time spent on what have traditionally been manual processes.”
The platform works by using a comprehensive database of industry standard questions that assess a person’s health and lifestyle status. It has an online pre-assessment facility which gives advisers an indicative underwriting opinion in as little as 2-3 minutes, providing more flexibility in the formulation of advice for the customer.
Currently, the online platform is the only one in Australia that fully integrates a pre-assessment decision into the full application. This presents an opportunity for expedited insurance cover if the adviser and the customer are satisfied with the pre-assessment outcome.
The enhancements to underwriting are a key pillar of MLC Life Insurance’s $500 million transformation program, which is focused on delivering the most advanced digital infrastructure in the industry to better serve customers.
“We’re building our technology platforms to help put in place the capabilities to be successful in the future and ensure we deliver a great customer and adviser experience. Innovation in underwriting is a key part of this.
“Our digital underwriting platform is enabling us to move away from a ‘one size fits all’ approach, and to allow our underwriters to focus on more complex cases.”
Further information on MLC Life Insurance’s underwriting platform can be found at mlcinsurance.com.au/underwriting